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Introduced Version Senate Bill 567 History

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sb567 intr
Senate Bill No. 567

(By Senators Walters and D. Hall)

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         [Introduced March 19, 2013; referred to the Committee on Health and Human Resources; and then to the Committee on Government Organization       .]                            

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A BILL to amend and reenact §16-2D-6 of the Code of West Virginia, 1931, as amended, relating to certificate of need; and establishing a definition of "no significant additional fiscal burden" in the minimum criteria for certificate of need reviews when an application is made by a hospital, nursing home or other health care facility to provide ventilator services which have not previously been provided for a nursing facility bed.
Be it enacted by the Legislature of West Virginia:
    That §16-2D-6 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 2D. CERTIFICATE OF NEED.
§16-2D-6. Minimum criteria for certificate of need reviews.

     (a) Except as provided in subsection (f), section nine of this article, in making its determination as to whether a certificate of need shall be issued, the state agency shall, at a minimum, consider all of the following criteria that are applicable: Provided, That the criteria set forth in subsection (f) of this section apply to all hospitals, nursing homes and health care facilities when ventilator services are to be provided for any nursing facility bed:
     (1) The relationship of the health services being reviewed to the state health plan;
     (2) The relationship of services reviewed to the long-range development plan of the person providing or proposing the services;
     (3) The need that the population served or to be served by the services has for the services proposed to be offered or expanded, and the extent to which all residents of the area, and in particular low income persons, racial and ethnic minorities, women, handicapped persons other medically underserved population and the elderly, are likely to have access to those services;
     (4) The availability of less costly or more effective alternative methods of providing the services to be offered, expanded, reduced, relocated or eliminated;
     (5) The immediate and long-term financial feasibility of the proposal as well as the probable impact of the proposal on the costs of and charges for providing health services by the person proposing the new institutional health service;
     (6) The relationship of the services proposed to the existing health care system of the area in which the services are proposed to be provided;
     (7) In the case of When health services are proposed to be provided, the availability of resources, including health care providers, management personnel and funds for capital and operating needs, for the provision of the services proposed to be provided and the need for alternative uses of these resources as identified by the state health plan and other applicable plans;
     (8) The appropriate and nondiscriminatory utilization of existing and available health care providers;
     (9) The relationship, including the organizational relationship, of the health services proposed to be provided to ancillary or support services;
     (10) Special needs and circumstances of those entities which provide a substantial portion of their services or resources, or both, to individuals not residing in the health service areas in which the entities are located or in adjacent health service areas. The entities may include medical and other health professional schools, multidisciplinary clinics and specialty centers;
     (11) In the case of If there is a reduction or elimination of a service, including the relocation of a facility or a service, the need that the population presently served has for the service, the extent to which that need will be met adequately by the proposed relocation or by alternative arrangements, and the effect of the reduction, elimination or relocation of the service on the ability of low income persons, racial and ethnic minorities, women, handicapped persons other medically underserved population and the elderly, to obtain needed health care;
     (12) In the case of When there is a construction project: (A) The cost and methods of the proposed construction, including the costs and methods of energy provision; and (B) the probable impact of the construction project reviewed on the costs of providing health services by the person proposing the construction project and on the costs and charges to the public of providing health services by other persons;
     (13) In the case of When health services are proposed to be provided, the effect of the means proposed for the delivery of proposed health services on the clinical needs of health professional training programs in the area in which the services are to be provided;
     (14) In the case of When health services are proposed to be provided, if the services are to be available in a limited number of facilities, the extent to which the schools in the area for health professions will have access to the services for training purposes;
     (15) In the case of When health services are proposed to be provided, the extent to which the proposed services will be accessible to all the residents of the area to be served by the services;
     (16) In accordance with section five of this article, the factors influencing the effect of competition on the supply of the health services being reviewed;
     (17) Improvements or innovations in the financing and delivery of health services which foster competition, in accordance with section five of this article, and serve to promote quality assurance and cost effectiveness;
     (18) In the case of When health services or facilities are proposed to be provided, the efficiency and appropriateness of the use of existing services and facilities similar to those proposed;
     (19) In the case of If existing services or facilities, the quality of care provided by the services or facilities in the past;
     (20) In the case where If an application is made by an osteopathic or allopathic facility for a certificate of need to construct, expand or modernize a health care facility, acquire major medical equipment or add services, the need for that construction, expansion, modernization, acquisition of equipment or addition of services shall be considered on the basis of the need for and the availability in the community of services and facilities for osteopathic and allopathic physicians and their patients. The state agency shall consider the application in terms of its impact on existing and proposed institutional training programs for doctors of osteopathy and medicine at the student, internship and residency training levels;
     (21) The special circumstances of health care facilities with respect to the need for conserving energy;
     (22) The contribution of the proposed service in meeting the health-related needs of members of medically underserved populations which have traditionally experienced difficulties in obtaining equal access to health services, particularly those needs identified in the state health plan as deserving of priority. For the purpose of determining the extent to which the proposed service will be accessible, the state agency shall consider:
     (A) The extent to which medically underserved populations currently use the applicant's services in comparison to the percentage of the population in the applicant's service area which is medically underserved, and the extent to which medically underserved populations are expected to use the proposed services if approved;
     (B) The performance of the applicant in meeting its obligation, if any, under any applicable federal regulations requiring provision of uncompensated care, community service or access by minorities and handicapped persons to programs receiving federal financial assistance, including the existence of any civil rights access complaints against the applicant;
     (C) The extent to which Medicare, Medicaid and medically indigent patients are served by the applicant; and
     (D) The extent to which the applicant offers a range of means by which a person will have access to its services, including, but not limited to, outpatient services, admission by a house staff and admission by personal physician;
     (23) The existence of a mechanism for soliciting consumer input into the health care facility's decision-making process.
     (b) The state agency may include additional criteria which it prescribes by rules adopted pursuant to section eight of this article.
     (c) Criteria for reviews may vary according to the purpose for which a particular review is being conducted or the types of health services being reviewed.
     (d) An application for a certificate of need may not be made subject to any criterion not contained in this article, in rules adopted pursuant to section eight of this article or in the certificate of need standards approved pursuant to section five of this article.
     (e) In the case of For any proposed new institutional health service, the state agency may not grant a certificate of need under its certificate of need program unless, after consideration of the appropriateness of the use of existing facilities providing services similar to those being proposed, the state agency makes, in addition to findings required in section nine of this article, each of the following findings in writing: (1) That superior alternatives to the services in terms of cost, efficiency and appropriateness do not exist and the development of alternatives is not practicable; (2) that existing facilities providing services similar to those proposed are being used in an appropriate and efficient manner; (3) that in the case of new construction, alternatives to new construction, such as modernization or sharing arrangements, have been considered and have been implemented to the maximum extent practicable; (4) that patients will experience serious problems in obtaining care of the type proposed in the absence of the proposed new service; and (5) that in the case of a proposal for the addition of beds for the provision of skilled nursing or intermediate care services, the addition will be consistent with the plans of other agencies of the state responsible for the provision and financing of long-term care facilities or services including home health services.
     (f) In the case where When an application is made by a hospital, nursing home or other health care facility to provide ventilator services which have not previously been provided for a nursing facility bed, the state agency shall consider the application in terms of the need for the service and whether the cost exceeds the level of current Medicaid services. No facility may, by providing ventilator services, provide a higher level of service for a nursing facility bed without demonstrating that the change in level of service by provision of the additional ventilator services will result in no additional fiscal burden to the state.
     (g) In the case where When application is made by any person or entity to provide personal care services which are to be billed for Medicaid reimbursement, the state agency shall consider the application in terms of the need for the service and whether the cost exceeds the level of the cost of current Medicaid services. No person or entity may provide personal care services to be billed for Medicaid reimbursement without demonstrating that the provision of the personal care service will result in no significant additional fiscal burden to the state: Provided, That a certificate of need is not required for a person providing specialized foster care personal care services to one individual and those services are delivered in the provider's home. The state agency shall also consider the total fiscal liability to the state for all applications which have been submitted.
     (h) For purposes of subsection (f), "no significant additional fiscal burden" means cost increase above normal annual increases in trend for utilization or cost for the state as well as any projected increase in need due to the aging of the state's population. In determining significant fiscal burden the bureau shall consider cost reductions by virtue of avoiding institutional care. The Bureau of Medical Services may not include administrative or monitoring expenses when determining significant additional fiscal burden to the state. If the Bureau for Medical Services believes the applicant's project will result in a significant additional fiscal burden to the state, then the Bureau for Medical Services shall submit the findings in writing within thirty days of the filing of the Certificate of Need applicant and the findings shall be considered by the agency. If the Bureau for Medical Services submits findings that the applicant's application will result in a significant additional fiscal burden, then the Bureau for Medical Services shall develop and submit the findings without respect to the type of entity submitting the application. Notwithstanding any statute, rule or regulation to the contrary, the agency shall make the determination of need without respect to the type of entity making such application and shall make the final of whether the project places no significant additional fiscal burden on the state based on the evidence presented in the applicant's filing and other findings presented by the Bureau of Medical Services and other interested parties and the evidence gathered during the certificate of need process within the time frames established by this code.



     NOTE: The purpose of this bill is to establish a definition of "no significant additional fiscal burden" in the minimum criteria for certificate of need reviews when an application is made by a hospital, nursing home or other health care facility to provide ventilator services which have not previously been provided for a nursing facility bed.

     Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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