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AN ACT relating to certificate of need. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 216B.020 is amended to read as follows: 3
(1) (a) The provisions of this chapter that relate to the issuance of a certificate of 4
need shall not apply to: 5
1. Abortion facilities as defined in KRS 216B.015; 6
2. Any hospital which does not charge its patients for hospital services and 7
does not seek or accept Medicare, Medicaid, or other financial support 8
from the federal government or any state government; 9
3. Assisted living residences; family care homes; state veterans' nursing 10
homes; 11
4. Services provided on a contractual basis in a rural primary-care hospital 12
as provided under KRS 216.380; 13
5. Community mental health centers for services as defined in KRS 14
Chapter 210; 15
6. Primary care centers; 16
7. Rural health clinics; 17
8. Private duty nursing services operating as health care services agencies 18
as defined in KRS 216.718; 19
9. Group homes; 20
10. Licensed residential crisis stabilization units; 21
11. Licensed free-standing residential substance use disorder treatment 22
programs with sixteen (16) or fewer beds, but not including Levels I and 23
II psychiatric residential treatment facilities or licensed psychiatric 24
inpatient beds; 25
12. Outpatient behavioral health treatment, but not including partial 26
hospitalization programs; 27 UNOFFICIAL COPY 25 RS BR 309
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13. End stage renal disease dialysis facilities, freestanding or hospital based; 1
14. Swing beds; 2
15. Special clinics, including but not limited to wellness, weight loss, family 3
planning, disability determination, speech and hearing, counseling, 4
pulmonary care, and other clinics which only provide diagnostic 5
services with equipment not exceeding the major medical equipment 6
cost threshold and for which there are no review criteria in the state 7
health plan; 8
16. Nonclinically related expenditures; 9
17. Nursing home beds that shall be exclusively limited to on-campus 10
residents of a certified continuing care retirement community; 11
18. Home health services provided by a continuing care retirement 12
community to its on-campus residents; 13
19. The relocation of hospital administrative or outpatient services into 14
medical office buildings which are on or contiguous to the premises of 15
the hospital; 16
20. The relocation of acute care beds which occur among acute care 17
hospitals under common ownership and which are located in the same 18
area development district so long as there is no substantial change in 19
services and the relocation does not result in the establishment of a new 20
service at the receiving hospital for which a certificate of need is 21
required; 22
21. The redistribution of beds by licensure classification within an acute 23
care hospital so long as the redistribution does not increase the total 24
licensed bed capacity of the hospital; 25
22. Residential hospice facilities established by licensed hospice programs; 26
23. The following health services provided on site in an existing health 27 UNOFFICIAL COPY 25 RS BR 309
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facility when the cost is less than six hundred thousand dollars 1
($600,000) and the services are in place by December 30, 1991: 2
a. Psychiatric care where chemical dependency services are 3
provided;[,] 4
b. Level I[one (1)] and Level II[two (2)] of neonatal care; and[,] 5
c. Cardiac catheterization[,] and open heart surgery where cardiac 6
catheterization services are in place as of July 15, 1990; or 7
24. Ambulance services operating in accordance with subsection (6), (7), or 8
(8) of this section. 9
(b) The[These listed] facilities or services listed in paragraph (a) of this 10
subsection shall be subject to licensure, when applicable. 11
(2) Nothing in this chapter shall be construed to authorize the licensure, supervision, 12
regulation, or control in any manner of: 13
(a) Private offices and clinics of physicians, dentists, and other practitioners of 14
the healing arts, except any physician's office that meets the criteria set forth 15
in KRS 216B.015(5) or that meets the definition of an ambulatory surgical 16
center as set out in KRS 216B.015; 17
(b) Office buildings built by or on behalf of a health facility for the exclusive use 18
of physicians, dentists, and other practitioners of the healing arts; unless the 19
physician's office meets the criteria set forth in KRS 216B.015(5), or unless 20
the physician's office is also an abortion facility as defined in KRS 216B.015, 21
except no capital expenditure or expenses relating to any such building shall 22
be chargeable to or reimbursable as a cost for providing inpatient services 23
offered by a health facility; 24
(c) Outpatient health facilities or health services that: 25
1. Do not provide services or hold patients in the facility after midnight; 26
and 27 UNOFFICIAL COPY 25 RS BR 309
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2. Are exempt from certificate of need and licensure under subsection (3) 1
of this section; 2
(d) Dispensaries and first-aid stations located within business or industrial 3
establishments maintained solely for the use of employees, if the facility does 4
not contain inpatient or resident beds for patients or employees who generally 5
remain in the facility for more than twenty-four (24) hours; 6
(e) Establishments, such as motels, hotels, and boarding houses, which provide 7
domiciliary and auxiliary commercial services, but do not provide any health 8
related services and boarding houses which are operated by persons 9
contracting with the United States Department of Veterans Affairs for 10
boarding services; 11
(f) The remedial care or treatment of residents or patients in any home or 12
institution conducted only for those who rely solely upon treatment by prayer 13
or spiritual means in accordance with the creed or tenets of any recognized 14
church or religious denomination and recognized by that church or 15
denomination; and 16
(g) On-duty police and fire department personnel assisting in emergency 17
situations by providing first aid or transportation when regular emergency 18
units licensed to provide first aid or transportation are unable to arrive at the 19
scene of an emergency situation within a reasonable time. 20
(3) The following outpatient categories of care shall be exempt from certificate of need 21
and licensure on July 14, 2018: 22
(a) Primary care centers; 23
(b) Special health clinics, unless the clinic provides pain management services 24
and is located off the campus of the hospital that has majority ownership 25
interest; 26
(c) Specialized medical technology services, unless providing a state health plan 27 UNOFFICIAL COPY 25 RS BR 309
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service; 1
(d) Retail-based health clinics and ambulatory care clinics that provide 2
nonemergency, noninvasive treatment of patients; 3
(e) Ambulatory care clinics treating minor illnesses and injuries; 4
(f) Mobile health services, unless providing a service in the state health plan; 5
(g) Rehabilitation agencies; 6
(h) Rural health clinics; and 7
(i) Off-campus, hospital-acquired physician practices. 8
(4) The exemptions established by subsections (2) and (3) of this section shall not 9
apply to the following categories of care: 10
(a) An ambulatory surgical center as defined by KRS 216B.015[(4)]; 11
(b) A health facility or health service that provides one (1) of the following types 12
of services: 13
1. Cardiac catheterization; 14
2. Megavoltage radiation therapy; 15
3. Adult day health care; 16
4. Behavioral health services; 17
5. Chronic renal dialysis; 18
6. Birthing services; or 19
7. Emergency services above the level of treatment for minor illnesses or 20
injuries; 21
(c) A pain management facility as defined by KRS 218A.175[(1)]; 22
(d) An abortion facility that requires licensure pursuant to KRS 216B.0431; or 23
(e) A health facility or health service that requests an expenditure that exceeds the 24
major medical expenditure minimum. 25
(5) An existing facility licensed as an intermediate care or nursing home shall notify 26
the cabinet of its intent to change to a nursing facility as defined in Pub. L. 27 UNOFFICIAL COPY 25 RS BR 309
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No.[Public Law] 100-203. A certificate of need shall not be required for conversion 1
of an intermediate care or nursing home to the nursing facility licensure category. 2
(6) Ambulance services owned and operated by a city government, which propose to 3
provide services in coterminous cities outside of the ambulance service's designated 4
geographic service area, shall not be required to obtain a certificate of need if the 5
governing body of the city in which the ambulance services are to be provided 6
enters into an agreement with the ambulance service to provide services in the city. 7
(7) Ambulance services owned by a hospital shall not be required to obtain a certificate 8
of need for the sole purpose of providing non-emergency and emergency transport 9
services originating from its hospital. 10
(8) (a) As used in this subsection, "emergency ambulance transport services" means 11
the transportation of an individual that has an emergency medical condition 12
with acute symptoms of sufficient severity that the absence of immediate 13
medical attention could reasonably be expected to place the individual's health 14
in serious jeopardy or result in the serious impairment or dysfunction of the 15
individual's bodily organs. 16
(b) A city or county government that has conducted a public hearing for the 17
purposes of demonstrating that an imperative need exists in the city or county 18
to provide emergency ambulance transport services within its jurisdictional 19
boundaries shall not be required to obtain a certificate of need for the city or 20
county to: 21
1. Directly provide emergency ambulance transport services as defined in 22
this subsection within the city's or county's jurisdictional boundaries; or 23
2. Enter into a contract with a hospital or hospitals within its jurisdiction, 24
or within an adjoining county if there are no hospitals located within the 25
county, for the provision of emergency ambulance transport services as 26
defined in this subsection within the city's or county's jurisdictional 27 UNOFFICIAL COPY 25 RS BR 309
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boundaries. 1
(c) Any license obtained under KRS Chapter 311A by a city or county for the 2
provision of ambulance services operating under a certificate of need 3
exclusion pursuant to this subsection shall be held exclusively by the city or 4
county government and shall not be transferrable to any other entity. 5
(d) Prior to obtaining the written agreement of a city, an ambulance service 6
operating under a county government certificate of need exclusion pursuant to 7
this subsection shall not provide emergency ambulance transport services 8
within the boundaries of any city that: 9
1. Possesses a certificate of need to provide emergency ambulance 10
services; 11
2. Has an agency or department thereof that holds a certificate of need to 12
provide emergency ambulance services; or 13
3. Is providing emergency ambulance transport services within its 14
jurisdictional boundaries pursuant to this subsection. 15
(9) (a) Except where a certificate of need is not required pursuant to subsection (6), 16
(7), or (8) of this section, the cabinet shall grant nonsubstantive review for a 17
certificate of need proposal to establish an ambulance service that is owned by 18
a: 19
1. City government; 20
2. County government; or 21
3. Hospital, in accordance with paragraph (b) of this subsection. 22
(b) A notice shall be sent by the cabinet to all cities and counties that a certificate 23
of need proposal to establish an ambulance service has been submitted by a 24
hospital. The legislative bodies of the cities and counties affected by the 25
hospital's certificate of need proposal shall provide a response to the cabinet 26
within thirty (30) days of receiving the notice. The failure of a city or county 27 UNOFFICIAL COPY 25 RS BR 309
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legislative body to respond to the notice shall be deemed to be support for the 1
proposal. 2
(c) An ambulance service established under this subsection shall not be 3
transferred to another entity that does not meet the requirements of paragraph 4
(a) of this subsection without first obtaining a substantive certificate of need. 5
(10) Notwithstanding any other provision of law, a continuing care retirement 6
community's nursing home beds shall not be certified as Medicaid eligible unless a 7
certificate of need has been issued authorizing applications for Medicaid 8
certification. The provisions of subsection (5) of this section notwithstanding, a 9
continuing care retirement community shall not change the level of care licensure 10
status of its beds without first obtaining a certificate of need. 11
(11) An ambulance service established under subsection (9) of this section shall not be 12
transferred to an entity that does not qualify under subsection (9) of this section 13
without first obtaining a substantive certificate of need. 14
(12) (a) The provisions of subsections (7), (8), and (9) of this section shall expire on 15
July 1, 2026. 16
(b) All actions taken by cities, counties, and hospitals, exemptions from obtaining 17
a certificate of need, and any certificate of need granted under subsections (7), 18
(8), and (9) of this section prior to July 1, 2026, shall remain in effect on and 19
after July 1, 2026. 20
Section 2. KRS 216B.095 is amended to read as follows: 21
(1) An applicant may waive the procedures for formal review of an application for a 22
certificate of need and request a nonsubstantive review as provided below. The 23
cabinet shall[may] grant or deny nonsubstantive review status within ten (10) days 24
of the date the application is deemed completed and shall give notice to all affected 25
persons of the decision to conduct a nonsubstantive review. 26
(2) Any affected person other than the applicant may request a hearing by filing a 27 UNOFFICIAL COPY 25 RS BR 309
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request with the cabinet within ten (10) days of the notice to conduct a 1
nonsubstantive review. As applicable, hearings shall be conducted as provided in 2
KRS 216B.085. 3
(3) [Based solely upon the record established with regard to the matter, ]The cabinet 4
shall approve or deny an application that has been granted nonsubstantive review 5
within thirty-five (35) days of the date that nonsubstantive review status was 6
granted[a certificate of need on all projects assigned nonsubstantive review status 7
within thirty-five (35) days of the determination of nonsubstantive review status. If 8
the application is denied nonsubstantive review status, it shall automatically be 9
placed in the formal review process]. 10
(4)[(2)] If a certificate of need is denied following a nonsubstantive review, the 11
applicant may request that the application be placed in the next cycle of the formal 12
review process. 13
(5) Nothing in this section[subsection] shall require an applicant to pursue a formal 14
review before obtaining judicial review pursuant to KRS 216B.115. 15
(6)[(3)] The cabinet shall[may] grant nonsubstantive review status to an application 16
for a certificate of need which is required: 17
(a) To change the location of a proposed health facility; 18
(b) To replace or relocate a licensed health facility if:[,] 19
1. a. [If ]There is no substantial change in health services or substantial 20
change in bed capacity; and 21
b. The replacement or relocation is within the same county; or 22
2. The replacement or relocation is for a psychiatric residential treatment 23
facility; 24
(c) To replace or repair worn equipment if the worn equipment has been used by 25
the applicant in a health facility for five (5) years or more; 26
(d) For cost escalations;[ or] 27 UNOFFICIAL COPY 25 RS BR 309
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(e) To establish or expand a health facility or health service for which there is 1
not a component in the state health plan; 2
(f) To establish an ambulatory surgical center pursuant to the conditions 3
specified in subsection (10) of this section; 4
(g) To establish an ambulatory surgical center that: 5
1. Does not charge its patients and does not seek or accept: 6
a. Payment from any health insurance provider, including 7
Medicare and Medicaid; or 8
b. Financial support from the state or federal government; and 9
2. Utilizes the surgical facilities of an existing licensed ambulatory 10
surgical center during times the host ambulatory surgical center is not 11
in operation; 12
(h) To establish an industrial ambulance service; 13
(i) Prior to July 1, 2026, to establish an ambulance service in accordance with 14
subsection (9) of Section 1 of this Act; 15
(j) For a proposal made by a Level II psychiatric residential treatment facility; 16
(k) To establish an inpatient psychiatric unit in an existing licensed acute care 17
hospital under the following conditions: 18
1. The hospital is located in a county that has no existing, freestanding 19
psychiatric hospital; 20
2. The occupancy of acute care beds in the hospital is less than seventy 21
percent (70%) according to the most recent edition of the Kentucky 22
Annual Hospital Utilization and Services Report produced by the 23
Cabinet for Health and Family Services; 24
3. All of the proposed psychiatric beds are being converted from licensed 25
acute care beds; 26
4. No more than twenty percent (20%) of the hospital's acute care beds 27 UNOFFICIAL COPY 25 RS BR 309
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up to a maximum of twenty-five (25) beds will be converted to 1
psychiatric beds; 2
5. All of the psychiatric beds will be implemented on-site at the 3
applicant's existing licensed facility; and 4
6. All of the psychiatric beds will be dedicated exclusively to the 5
treatment of adult patients aged eighteen (18) to sixty-four (64); 6
(l) For a proposal made by a Kentucky licensed acute care hospital, critical 7
access hospital, or nursing facility to expand a home health service to 8
provide services exclusively to patients discharged from its facility who 9
require home health services at the time of discharge and no existing 10
licensed home health agency is available and willing to accept the referral; 11
(m) 1. For a proposal by a PACE program for a program that: 12
a. Has met the requirements of the state readiness review according 13
to a report submitted by the Department for Medicaid Services to 14
the Centers for Medicare and Medicaid Services; 15
b. Seeks to provide a health service directly to its members that is 16
not exempt from certificate of need under Section 1 of this Act; 17
and 18
c. Ensures that all services authorized under the PACE agreement 19
are provided exclusively to its members who reside within a 20
service area: 21
i. Located within the Commonwealth of Kentucky; and 22
ii. Approved by both the Department for Medicaid Services 23
and Centers for Medicare and Medicaid Services. 24
2. As used in this paragraph, "PACE" has the same meaning as in KRS 25
216B.168; 26
(n) For a proposal to reestablish a licensed health care facility or service that 27 UNOFFICIAL COPY 25 RS BR 309
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was provided at a hospital and was voluntarily discontinued by the applicant 1
under the following circumstances: 2
1. The termination or voluntary closure of the hospital: 3
a. Was not the result of an order or directive by the cabinet, 4
governmental agency, judicial body, or other regulatory 5
authority; 6
b. Did not occur during or after an investigation by the cabinet, 7
governmental agency, or other regulatory authority; 8
c. Occurred while the facility was in substantial compliance with 9
applicable administrative regulations and was otherwise eligible 10
for relicensure; and 11
d. Was not an express condition of any subsequent certificate of 12
need approval; 13
2. The application to reestablish the health care facility or service that 14
was voluntarily discontinued is filed no more than one (1) year from 15
the date the hospital last provided the service that the applicant is 16
seeking to reestablish; 17
3. A proposed health care facility shall be located within the same county 18
as the former health care facility and at a single location; and 19
4. The application shall not seek to reestablish any type of bed utilized in 20
the care and treatment of patients for more than twenty-three (23) 21
consecutive hours; 22
(o) For a proposal that involves transferring acute care beds from one (1) or 23
more existing Kentucky-licensed hospitals to establish a new hospital under 24
the following circumstances: 25
1. The existing and new hospitals shall be under common ownership and 26
located in the same county; 27 UNOFFICIAL COPY 25 RS BR 309
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2. No more than fifty percent (50%) of the existing hospital's acute care 1
beds shall be transferred to the new facility; and 2
3. If the existing hospital: 3
a. Is a state university teaching hospital, the existing hospital 4
exceeded, by at least one (1), the minimum number of quality 5
measures required to receive supplemental university directed 6
payments from the state Medicaid program for the state fiscal 7
year preceding the date the application was filed; or 8
b. Is not a state university teaching hospital, the existing hospital's 9
overall star rating by the Centers for Medicare and Medicaid 10
Services Hospital Care Compare program was three (3) stars or 11
higher on the most recent annual update to the overall star 12
ratings preceding the date the application was filed; or 13
(p) In other circumstances the cabinet may prescribe by administrative 14
regulation[ may prescribe]. 15
(7)[(4)] If an application is granted nonsubstantive review status, unless rebutted by 16
clear and convincing evidence submitted by an affected party, there shall be a 17
presumption that the facility or service is: 18
(a) Needed; and 19
(b) Consistent with the state health plan[Notwithstanding any other provision to 20
the contrary in this chapter, the cabinet may approve a certificate of need for a 21
project required for the purposes set out in subsection (3)(a) to (e) of this 22
section, unless it finds the facility or service with respect to which the capital 23
expenditure is proposed to be made is not required; or to the extent the facility 24
or services contemplated by the proposed capital expenditure is addressed in 25
the state health plan, the cabinet finds that the capital expenditure is not 26
consistent with the state health plan]. 27 UNOFFICIAL COPY 25 RS BR 309
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(8)[(5)] The decision of the cabinet approving or denying a certificate of need 1
pursuant to this section shall be final for purposes of judicial appeal, unless the 2
applicant requests the application be placed in the formal review process. An 3
approved certificate shall be issued thirty (30) days after notice of the cabinet's 4
decision, unless a judicial appeal is taken and issuance is enjoined by the court. 5
(9)[(6)] Notwithstanding any other provision of law, the cabinet shall not grant 6
nonsubstantive review status to a certificate of need application that indicates an 7
intent to apply for Medicaid certification of nursing home beds within a continuing 8
care retirement community established under KRS 216B.015, 216B.020, 216B.330, 9
and 216B.332. 10
(10)[(7)] Notwithstanding any provision of state law or the state health plan 11
promulgated by administrative regulation in accordance with KRS 216B.040, the 12
cabinet shall grant nonsubstantive review for a certificate of need proposal to 13
establish an ambulatory surgical center if the applicant complies with the following: 14
(a) The applicant is an ambulatory surgical center that was organized and in 15
operation as the private office of a physician or physician group prior to 16
October 1, 2006; 17
(b) 1. The cabinet's general counsel has submitted a letter to the Accreditation 18
Association for Ambulatory Health Care advising that the cabinet does 19
not object to the applicant's parent company applying for and obtaining 20
Medicare certification; or 21
2. The applicant is an ambulatory surgical center that has received from the 22
cabinet a favorable advisory opinion dated June 14, 2005, confirming 23
that the applicant would be exempt from the certificate of need or 24
licensure requirement; 25
(c) The applicant's ambulatory surgical center has been inspected and accredited 26
by the Accreditation Association for Ambulatory Health Care since December 27 UNOFFICIAL COPY 25 RS BR 309
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31, 2006, and has maintained accreditation with that organization consistently 1
since that time; and 2
(d) The applicant was a party to litigation concerning the ambulatory surgical 3
center and physician office issue and, prior to July 12, 2012, obtained a Court 4
of Appeals ruling in its favor. 5
Section 3. KRS 216B.062 is amended to read as follows: 6
(1) Applications for certificates of need shall be submitted according to timetables 7
established by the cabinet by promulgation of administrative regulation, pursuant to 8
the provisions of KRS Chapter 13A. The application for a certificate of need shall 9
include the name and business address of any owner, investor, or stockholder in the 10
project whose ownership interest is greater than ten percent (10%). Once an 11
application has been deemed complete pursuant to the cabinet's administrative 12
regulations, notice shall be given as provided by the regulations of the beginning of 13
the review, the proposed review schedule, and the right to request a hearing. The 14
review shall be deemed to commence on the date of notice. No review shall take 15
longer than ninety (90) days from the commencement of the review unless the 16
applicant agrees to a deferral of action. 17
(2) The cabinet shall not batch applications proposing the same or similar types of 18
services, facilities, or equipment[Applications proposing the same or similar types 19
of services, facilities, or equipment shall be batched for review purposes, excluding 20
those granted nonsubstantive review status. The cabinet shall by promulgation of 21
administrative regulation under KRS Chapter 13A establish appropriate batching 22
groups to assure that applications for each type of service, facility, or equipment 23
will be eligible for consideration at set intervals. In each review batch, the cabinet 24
shall review and, if appropriate, compare all timely-filed applications proposing 25
similar types of services, facilities, or equipment in the same health service areas]. 26
SECTION 4. A NEW SECTION OF KRS CHAPTER 216B IS CREATED TO 27 UNOFFICIAL COPY 25 RS BR 309
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READ AS FOLLOWS: 1
(1) As used in this section: 2
(a) "Health care system" means a for-profit, nonprofit, or university-affiliated 3
organization that owns and manages an existing licensed hospital within an 4
urban health care market; 5
(b) "Pilot program" means the program established under this section; and 6
(c) "Urban health care market" means a county: 7
1. With a population exceeding one hundred thousand (100,000) based 8
upon the most recent United States Census Bureau Annual Estimates 9
of the Resident Population for Counties; and 10
2. That has one (1) or more licensed hospitals within the county that 11
exceeded thirty thousand (30,000) inpatient days in the prior year, 12
according to the most recent edition of the Kentucky Annual Hospital 13
Utilization and Services Report produced by the Cabinet for Health 14
and Family Services. 15
(2) (a) The General Assembly finds and declares that health care consumers will 16
benefit from increased access to quality health care services in the state's 17
urban health care markets through reforms to certificate of need. 18
Furthermore, policymakers may utilize knowledge gained from a pilot 19
program in the state’s urban health care markets to inform future initiatives 20
to increase access to health care services throughout the Commonwealth. 21
(b) The cabinet shall establish a pilot program in Kentucky’s urban health care 22
markets to modernize requirements for a certificate of need. 23
(c) The pilot program shall begin on January 1, 2026, and end on December 24
31, 2029, unless otherwise extended or limited by the General Assembly. 25
(3) Notwithstanding any other provisions of this chapter to the contrary, the 26
following provisions shall apply under the pilot program: 27 UNOFFICIAL COPY 25 RS BR 309
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(a) In addition to exemptions in Section 1 of this Act, the following shall be 1
exempt from obtaining a certificate of need in an urban health care market: 2
1. Medical resonance imaging equipment; 3
2. Providers replacing worn equipment if the equipment has been used in 4
a health facility for three (3) years or more and it previously required 5
a certificate of need; 6
3. Ambulatory surgical centers solely dedicated to ophthalmological 7
services; 8
4. Megavoltage radiation therapy and PET equipment acquired by 9
existing licensed Kentucky hospitals with accredited cancer centers; 10
5. Personal care homes specializing in Alzheimer’s or dementia care; 11
6. Increases in the bed capacity of an existing licensed hospital up to ten 12
(10) beds or twenty percent (20%) of capacity, whichever is greater, in 13
any consecutive three (3) year period, in a hospital that has 14
maintained an overall occupancy of acute care beds in the facility at a 15
rate greater than eighty percent (80%) for the previous twelve (12) 16
month period; and 17
7. To change the location of a proposed health facility or to relocate a 18
licensed health facility if the change of location or relocation is within 19
the same county. 20
The facilities or services listed in this paragraph shall be subject to 21
licensure, when applicable; 22
(b) In addition to those facilities or services granted nonsubstantive review 23
status in Section 2 of this Act, the following shall be granted nonsubstantive 24
review status of an application for a certificate of need in an urban health 25
care market: 26
1. Establishing or expanding: 27 UNOFFICIAL COPY 25 RS BR 309
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a. Private duty nursing services to be provided solely within an 1
urban health care market; 2
b. Home health services to be provided solely within an urban 3
health care market; 4
c. Adult day care centers; and 5
d. Facilities specializing in the treatment of chemical dependency 6
or substance abuse disorders; 7
2. Increases in the bed capacity of an existing licensed hospital up to fifty 8
percent (50%) of capacity if: 9
a. The additional beds are utilized to establish a new hospital under 10
common ownership and within the same county; 11
b. The existing hospital has maintained an overall occupancy of 12
acute care beds at a rate greater than eighty percent (80%) for 13
the previous twelve (12) month period; and 14
c. There are a minimum of two (2) health care systems within the 15
county where the new hospital will be located; and 16
3. Ambulatory surgical centers dedicated solely to pain management. 17
The facilities or services listed in this paragraph shall be subject to 18
licensure, when applicable; and 19
(c) 1. a. An applicant listed under paragraph (b) of this subsection and 20
any affected person may submit written testimony, research, or 21
other materials for consideration to the cabinet within ten (10) 22
days of the notice to conduct a nonsubstantive review. 23
b. Upon request from the applicant, the cabinet shall provide the 24
applicant with a copy of any written testimony, research, or other 25
materials submitted to the cabinet by an affected person. The 26
applicant may provide a response to the cabinet within five (5) 27 UNOFFICIAL COPY 25 RS BR 309
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days of receiving them from the cabinet. 1
c. Only the applicant may request a hearing that shall be conducted 2
as provided in KRS 216B.085. 3
2. If a certificate of need is denied following a nonsubstantive review, the 4
applicant may: 5
a. Request that the application be placed in the next cycle of the 6
formal review process; 7
b. Request that the cabinet reconsider its decision pursuant to KRS 8
216B.090; or 9
c. Seek judicial review pursuant to KRS 216B.115. 10
3. Notwithstanding any law to the contrary, only the applicant may 11
request an application to be placed in the formal review process, 12
request the cabinet to reconsider its decision, or seek judicial review. 13
(4) Upon the end of the pilot program, all facilities or services established in an 14
urban health care market under the pilot program shall retain: 15
(a) Any certificate of need granted during the pilot program; and 16
(b) Approval of all related investments approved during the pilot program. 17
(5) The cabinet shall submit a report on the progress of the pilot program by 18
November 1 year each of the pilot program to the Legislative Research 19
Commission for referral to the Interim Joint Committee on Health Services. 20
(6) The cabinet may promulgate administrative regulations in accordance with KRS 21
Chapter 13A to implement this section. 22