GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 408*

Short Title:  CON/Chem. Dep. Beds Limit.	(Public)
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Sponsors: Representative Miller.
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Referred to:  Human Resources.
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March 28, 1991

A BILL TO BE ENTITLED
AN ACT TO AMEND THE CERTIFICATE OF NEED LAW TO IMPROVE THE ABILITY TO PLAN FOR CHEMICAL DEPENDENCY TREATMENT BEDS AND TO MAKE CLEAR THAT THE STATE MEDICAL FACILITIES PLAN LIMITS THE NUMBER OF BEDS OR FACILITIES THAT MAY BE APPROVED.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 131E-176(5b) reads as rewritten:
"(5b)	'Chemical dependency treatment beds' means beds that are licensed for detoxification or for the inpatient treatment of chemical dependency. Residential treatment beds for the treatment of chemical dependency or substance abuse are chemical dependency treatment beds."
Sec. 2. G.S. 131E-183(a) reads as rewritten:
"§ 131E-183. Review criteria.
(a)	The Department shall review all applications utilizing the criteria outlined in this subsection and shall determine that an application is either consistent with or not in conflict with  these criteria before a certificate of need for the proposed project shall be issued.
(1)	The proposed project shall be consistent with applicable policies and projections in the State Medical Facilities Plan, the needs projection of which constitutes a determinative limitation on the number of health service facility beds, dialysis stations, ambulatory surgical facilities, or home health agencies that may be allocated.
(2)	Repealed by Session Laws 1987, c. 511, s. 1.
(3)	The applicant shall identify the population to be served by the proposed project, and shall demonstrate the need that this population has for the services proposed, and the extent to which all residents of the area, and, in particular, low income persons, racial and ethnic minorities, women, handicapped persons, the elderly, and other underserved groups are likely to have access to the services proposed.
(3a)	In the case of a reduction or elimination of a service, including the relocation of a facility or a service, the applicant shall demonstrate that the needs of the population presently served 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, and other underserved groups and the elderly to obtain needed health care.
(4)	 Where alternative methods of meeting the needs for the proposed project exist, the applicant shall demonstrate that the least costly or most effective alternative has been proposed.
(5)	Financial and operational projections for the project shall demonstrate the availability of funds for capital and operating needs as well as the immediate and long-term financial feasibility of the proposal, based upon reasonable projections of the costs of and charges for providing health services by the person proposing the service.
(6)	The applicant shall demonstrate that the proposed project will not result in unnecessary duplication of existing or approved health service capabilities or facilities.
(7)	The applicant shall show evidence of the availability of resources, including health manpower and management personnel, for the provision of the services proposed to be provided.  Further, the applicant shall show that the use of these resources for provision of these services will not preclude alternative uses of these resources to fulfill other more important needs identified by the applicable State Health Plan.
(8)	The applicant shall demonstrate that the provider of the proposed services will make available, or otherwise make arrangements for, the provision of the necessary ancillary and support services.  The applicant shall also demonstrate that the proposed service will be coordinated with the existing health care system.
(9)	An applicant proposing to provide a substantial portion of the project's services to individuals not residing in the health service area in which the project is located, or in adjacent health service areas, shall document the special needs and circumstances that warrant service to these individuals.
(10)	When applicable, the applicant shall show that the special needs of health maintenance organizations will be fulfilled by the project.  Specifically, the applicant shall show that the project accommodates:
a.	The needs of enrolled members and reasonably anticipated new members of the HMO for the health service to be provided by the organization; and
b.	The availability of new health services from non-HMO providers or other HMOs in a reasonable and cost-effective manner which is consistent with the basic method of operation of the HMO. In assessing the availability of these health services from these providers, the applicant shall consider only whether the services from these providers:
1.	Would be available under a contract of at least five years' duration;
2.	Would be available and conveniently accessible through physicians and other health professionals associated with the HMO;
3.	Would cost no more than if the services were provided by the HMO; and
4.	Would be available in a manner which is administratively feasible to the HMO.
(11)	Repealed by Session Laws 1987, c. 511, s. 1.
(12)	Applications involving construction shall demonstrate that the cost, design, and means of construction proposed represent the most reasonable alternative, and that the construction project will not unduly increase the costs of providing health services by the person proposing the construction project or the costs and charges to the public of providing health services by other persons, and that applicable energy saving features have been incorporated into the construction plans.
(13)	The applicant shall demonstrate the contribution of the proposed service in meeting the health-related needs of the elderly and of members of medically underserved groups, such as medically indigent or low income persons, Medicaid and Medicare recipients, racial and ethnic minorities, women, and handicapped persons, which have traditionally experienced difficulties in obtaining equal access to the proposed 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 applicant shall show:
a.	The extent to which medically underserved populations currently use the applicant's existing services in comparison to the percentage of the population in the applicant's service area which is medically underserved;
b.	Its past performance in meeting its obligation, if any, under any applicable regulations requiring provision of uncompensated care, community service, or access by minorities and handicapped persons to programs receiving federal assistance, including the existence of any civil rights access complaints against the applicant;
c.	That the elderly and the medically underserved groups identified in this subdivision will be served by the applicant's proposed services and the extent to which each of these groups is expected to utilize the proposed services; and
d.	That the applicant offers a range of means by which a person will have access to its services. Examples of a range of means are outpatient services, admission by house staff, and admission by personal physicians.
(14)	The applicant shall demonstrate that the proposed health services accommodate the clinical needs of health professional training programs in the area, as applicable.
(15)	to (18) Repealed by Session Laws 1987, c. 511, s. 1.
(18a)	The applicant shall demonstrate the expected effects of the proposed services on competition in the proposed service area, including how any enhanced competition will have a positive impact upon the cost effectiveness, quality, and access to the services proposed; and in the case of applications for services where competition between providers will not have a favorable impact on cost effectiveness, quality, and access to the services proposed, the applicant shall demonstrate that its application is for a service on which competition will not have a favorable impact.
(19)	Repealed by Session Laws 1987, c. 511, s. 1.
	(20)	An applicant already involved in the provision of health services shall provide evidence that quality care has been provided in the past.
(21)	Repealed by Session Laws 1987, c. 511, s. 1."
Sec. 3.  This act becomes effective October 1, 1991, and applies to applications submitted on and after that date.