SB 1029 Modifies the certificate of need law
LR Number:4205S.02I Fiscal Note:4205-02
Committee:Aging, Families and Mental Health
Last Action:02/26/02 - SCS Voted Do Pass (SCS SBs 1029 & 1047) S Aging, Journal page:
Families & Mental Health Committee (4205S.09C)
Title:SCS SBs 1029 & 1047
Effective Date:August 28, 2002
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Current Bill Summary

SCS/SBs 1029 & 1047 - This act modifies the certificate of need law.

This act revises the definition for "expenditure minimum" to extend the zero expenditure minimum to January 1, 2008. Current law imposes a moratorium on the issuance of a certificate of need (CON) for certain facilities. This act extends the moratorium until January 1, 2008 (Section 197.317).

Certain facilities are currently exempted from CON. The provision removing the expenditure minimum for certain facilities is deleted. The time limits are changed from 18 to 12 months for facilities to make an effort to purchase beds before applying to increase licensed bed capacity. Current language is deleted and replaced with new language allowing a facility to increase its licensed bed capacity by:

- Submitting a letter of intent to the Department and the Committee; - Certifying that the facility has no class I deficiencies and has maintained a 90% average occupancy rate for the last 6 quarters; - Showing it has made an effort to purchase for 12 months following the letter of intent; - The term "effort to purchase" is revised to mean an offer to purchase beds in the same license category or an offer to purchase beds in another licensure category.

A facility may purchase, transfer, or sell beds to facilities satisfying the above requirements. Any facility which sells or transfers beds may not expand its bed capacity within that licensure category for five years from the date of relinquishment. If an agreement is reached by the selling and purchasing facilities, then a CON should be issued upon surrender of a seller's license. If an agreement is not reached, the Committee must permit an expansion as follows:

- A facility may expand its bed capacity within the same licensure category by 25%; - A facility may expand its bed capacity in a different licensure category by up to 10%.

Any licensed RCF or SNF may relocate licensed beds to another facility if both facilities are under the same ownership. An independent living facility may apply to buy beds by submitting a plan the Division of Health Standards and Licensure; obtaining a temporary license; obtaining authorization based on need; working with the Committee to identify a seller; obtaining a CON; and applying for licensure of the purchased beds.

A definition is provided for "independent living facility" (Section 197.318).

Currently, the Department of Health and Senior Services must inspect long term care facilities twice per year. This act lowers that number to one unannounced inspection per year, unless violations occur (Section 198.022).