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Senate File 236

Partial Bill History

Bill Text

PAG LIN
  1  1                                           SENATE FILE 236
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE CERTIFICATE OF NEED PROGRAM.
  1  5 
  1  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  7 
  1  8    Section 1.  Section 135.61, subsection 14, Code 1997, is
  1  9 amended to read as follows:
  1 10    14.  "Institutional health facility" means any of the
  1 11 following, without regard to whether the facilities referred
  1 12 to are publicly or privately owned or are organized for profit
  1 13 or not or whether the facilities are part of or sponsored by a
  1 14 health maintenance organization:
  1 15    a.  A hospital.
  1 16    b.  A health care facility.
  1 17    c.  A kidney disease treatment center, including any
  1 18 freestanding hemodialysis unit but not including any home
  1 19 hemodialysis unit.
  1 20    d c.  An organized outpatient health facility.
  1 21    e d.  An outpatient surgical facility.
  1 22    f e.  A community mental health facility.
  1 23    g f.  A birth center.
  1 24    Sec. 2.  Section 135.61, subsection 18, paragraphs c, e,
  1 25 and g through m, Code 1997, are amended to read as follows:
  1 26    c.  Any capital expenditure, lease, or donation by or on
  1 27 behalf of an institutional health facility in excess of eight
  1 28 one million five hundred thousand dollars within a twelve-
  1 29 month period.
  1 30    e.  Any expenditure in excess of three five hundred
  1 31 thousand dollars by or on behalf of an institutional health
  1 32 facility for health services which are or will be offered in
  1 33 or through an institutional health facility at a specific time
  1 34 but which were not offered on a regular basis in or through
  1 35 that institutional health facility within the twelve-month
  2  1 period prior to that time.
  2  2    g.  Any acquisition by or on behalf of a health care
  2  3 provider or a group of health care providers of any piece of
  2  4 replacement equipment with a value in excess of four one
  2  5 million five hundred thousand dollars, whether acquired by
  2  6 purchase, lease, or donation.
  2  7    h.  Any acquisition by or on behalf of a health care
  2  8 provider or group of health care providers of any piece of
  2  9 equipment with a value in excess of three one million five
  2 10 hundred thousand dollars, whether acquired by purchase, lease,
  2 11 or donation, which results in the offering or development of a
  2 12 health service not previously provided.  A mobile service
  2 13 provided on a contract basis is not considered to have been
  2 14 previously provided by a health care provider or group of
  2 15 health care providers.
  2 16    i.  Any acquisition by or on behalf of an institutional
  2 17 health facility or a health maintenance organization of any
  2 18 piece of replacement equipment with a value in excess of four
  2 19 one million five hundred thousand dollars, whether acquired by
  2 20 purchase, lease, or donation.
  2 21    j.  Any acquisition by or on behalf of an institutional
  2 22 health facility or health maintenance organization of any
  2 23 piece of equipment with a value in excess of three one million
  2 24 five hundred thousand dollars, whether acquired by purchase,
  2 25 lease, or donation, which results in the offering or
  2 26 development of a health service not previously provided.  A
  2 27 mobile service provided on a contract basis is not considered
  2 28 to have been previously provided by an institutional health
  2 29 facility.
  2 30    k.  Any air transportation system service for
  2 31 transportation of patients or medical personnel offered
  2 32 through an institutional health facility at a specific time
  2 33 but which was not offered on a regular basis in or through
  2 34 that institutional health facility within the twelve-month
  2 35 period prior to the specific time.
  3  1    l.  Any mobile health service with a value in excess of
  3  2 three one million five hundred thousand dollars.
  3  3    m.  Any of the following:
  3  4    (1)  Cardiac catheterization service.
  3  5    (2)  Open heart surgical service.
  3  6    (3)  Organ transplantation service.
  3  7    (4)  Radiation therapy service applying ionizing radiation
  3  8 for the treatment of malignant disease using megavoltage
  3  9 external beam equipment.
  3 10    Sec. 3.  Section 135.62, subsection 2, paragraph c, Code
  3 11 1997, is amended to read as follows:
  3 12    c.  MEETINGS.  The council shall hold an organizational
  3 13 meeting in July of each odd-numbered year, or as soon
  3 14 thereafter as the new appointee or appointees are confirmed
  3 15 and have qualified.  Other meetings shall be held at least
  3 16 once each month, and may be held more frequently if as
  3 17 necessary to enable the council to expeditiously discharge its
  3 18 duties.  Meeting dates shall be set upon adjournment or by
  3 19 call of the chairperson upon five days' notice to the other
  3 20 members.  Each member of the council shall receive a per diem
  3 21 as specified in section 7E.6 and reimbursement for actual
  3 22 expenses while engaged in official duties.
  3 23    Sec. 4.  Section 135.63, subsection 1, Code 1997, is
  3 24 amended to read as follows:
  3 25    1.  A new institutional health service or changed
  3 26 institutional health service shall not be offered or developed
  3 27 in this state without prior application to the department for
  3 28 and receipt of a certificate of need, pursuant to this
  3 29 division.  The application shall be made upon forms furnished
  3 30 or prescribed by the department and shall contain such
  3 31 information as the department may require under this division.
  3 32 The application shall be accompanied by a fee equivalent to
  3 33 three-tenths of one percent of the anticipated cost of the
  3 34 project with a minimum fee of six hundred dollars and a
  3 35 maximum fee of twenty-one thousand dollars.  The fee shall be
  4  1 remitted by the department to the treasurer of state, who
  4  2 shall place it in the general fund of the state.  If an
  4  3 application is voluntarily withdrawn within thirty calendar
  4  4 days after submission, seventy-five percent of the application
  4  5 fee shall be refunded; if the application is voluntarily
  4  6 withdrawn more than thirty but within sixty days after
  4  7 submission, fifty percent of the application fee shall be
  4  8 refunded; if the application is withdrawn voluntarily more
  4  9 than sixty days after submission, twenty-five percent of the
  4 10 application fee shall be refunded.  Notwithstanding the
  4 11 required payment of an application fee under this subsection,
  4 12 an applicant for a new institutional health service or a
  4 13 changed institutional health service offered or developed by
  4 14 an intermediate care facility for persons with mental
  4 15 retardation or an intermediate care facility for persons with
  4 16 mental illness as defined pursuant to section 135C.1 is exempt
  4 17 from payment of the application fee.
  4 18    Sec. 5.  Section 135.63, subsection 2, paragraph a, Code
  4 19 1997, is amended to read as follows:
  4 20    a.  Private offices and private clinics of an individual
  4 21 physician, dentist, or other practitioner or group of health
  4 22 care providers, except as provided by section 135.61,
  4 23 subsection 18, paragraphs "g", and "h", and "m", and
  4 24 subsections 20 and 21.
  4 25    Sec. 6.  Section 135.63, subsection 2, Code 1997, is
  4 26 amended by adding the following new paragraphs:
  4 27    NEW PARAGRAPH.  j.  The construction, modification, or
  4 28 replacement of nonpatient care services, including parking
  4 29 facilities, heating, ventilation and air conditioning systems,
  4 30 computers, telephone systems, medical office buildings, and
  4 31 other projects of a similar nature, notwithstanding any
  4 32 provision in this division to the contrary.
  4 33    NEW PARAGRAPH.  k.  The redistribution of beds by a
  4 34 hospital within the acute care category of bed usage,
  4 35 notwithstanding any provision in this division to the
  5  1 contrary, if all of the following conditions exist:
  5  2    (1)  The hospital reports to the department the number and
  5  3 type of beds to be redistributed on a form prescribed by the
  5  4 department at least thirty days before the redistribution.
  5  5    (2)  The hospital reports the new distribution of beds on
  5  6 its next annual report to the department.
  5  7    If these conditions are not met, the redistribution of beds
  5  8 by the hospital is subject to review as a new institutional
  5  9 health service or changed institutional health service
  5 10 pursuant to section 135.61, subsection 18, paragraph "d", and
  5 11 is subject to sanctions under section 135.73.
  5 12    NEW PARAGRAPH.  l.  The replacement or modernization of any
  5 13 institutional health facility if the replacement or
  5 14 modernization does not add new health services or additional
  5 15 bed capacity for existing health services, notwithstanding any
  5 16 provision in this division to the contrary.
  5 17    NEW PARAGRAPH.  m.  Hemodialysis services provided by a
  5 18 hospital or freestanding facility, notwithstanding any
  5 19 provision in this division to the contrary.
  5 20    NEW PARAGRAPH.  n.  Hospice services provided by a
  5 21 hospital, notwithstanding any provision in this division to
  5 22 the contrary.
  5 23    NEW PARAGRAPH.  o.  The change in ownership, licensure,
  5 24 organizational structure, or designation of the type of
  5 25 institutional health facility if the health services offered
  5 26 by the successor institutional health facility are unchanged.
  5 27    NEW PARAGRAPH.  p.  The conversion of an existing number of
  5 28 beds by an intermediate care facility for persons with mental
  5 29 retardation to a smaller facility environment, including but
  5 30 not limited to a community-based environment which does not
  5 31 result in an increased number of beds, notwithstanding any
  5 32 provision in this division to the contrary, including
  5 33 subsection 4, if all of the following conditions exist:
  5 34    (1)  The intermediate care facility for persons with mental
  5 35 retardation reports the number and type of beds to be
  6  1 converted on a form prescribed by the department at least
  6  2 thirty days before the conversion.
  6  3    (2)  The intermediate care facility for persons with mental
  6  4 retardation reports the conversion of beds on its next annual
  6  5 report to the department.
  6  6    Sec. 7.  Section 135.63, subsection 4, unnumbered paragraph
  6  7 1, Code 1997, is amended to read as follows:
  6  8    For the period beginning July 1, 1995, and ending June 30,
  6  9 1997 1998, the department shall not process applications for
  6 10 and the council shall not consider a new or changed
  6 11 institutional health service for an intermediate care facility
  6 12 for persons with mental retardation except as provided in this
  6 13 subsection.
  6 14    Sec. 8.  Section 135.63, subsection 4, paragraph a,
  6 15 unnumbered paragraph 1, Code 1997, is amended to read as
  6 16 follows:
  6 17    For the period beginning July 1, 1995, and ending June 30,
  6 18 1997 1998, the department and council shall process
  6 19 applications and consider applications if either of the
  6 20 following conditions are met:
  6 21    Sec. 9.  Section 135.65, subsection 1, Code 1997, is
  6 22 amended to read as follows:
  6 23    1.  Before applying for a certificate of need, the sponsor
  6 24 of a proposed new institutional health service or changed
  6 25 institutional health service shall submit to the department a
  6 26 letter of intent to offer or develop a service requiring a
  6 27 certificate of need.  The letter shall be submitted as soon as
  6 28 possible after initiation of the applicant's planning process,
  6 29 and in any case not less than sixty thirty days before
  6 30 applying for a certificate of need and before substantial
  6 31 expenditures to offer or develop the service are made.  The
  6 32 letter shall include a brief description of the proposed new
  6 33 or changed service, its location, and its estimated cost.
  6 34    Sec. 10.  Section 135.71, unnumbered paragraph 1, Code
  6 35 1997, is amended to read as follows:
  7  1    A certificate of need shall be valid for a maximum of one
  7  2 year from the date of issuance.  Upon the expiration of the
  7  3 certificate, or at any earlier time while the certificate is
  7  4 valid the holder thereof shall provide the department such
  7  5 information on the development of the project covered by the
  7  6 certificate as the department may request.  The council shall
  7  7 determine at the end of the certification period whether
  7  8 sufficient progress is being made on the development of the
  7  9 project and whether there has been compliance with any
  7 10 conditions on which issuance of the certificate was premised.
  7 11 The certificate of need may be extended by the council for
  7 12 additional periods of time as are reasonably necessary to
  7 13 expeditiously complete the project, but may be revoked by the
  7 14 council at the end of the first or any subsequent
  7 15 certification period for insufficient progress in developing
  7 16 the project or noncompliance with any conditions on which
  7 17 issuance of the certificate was premised.
  7 18    Sec. 11.  REVIEW OF CERTIFICATE OF NEED PROGRAM.
  7 19    1.  a.  The Iowa department of public health shall complete
  7 20 a comprehensive review of the certificate of need program and
  7 21 shall submit a written report of the findings and
  7 22 recommendations as to the continued relevance of the program
  7 23 to the general assembly by January 15, 2000.
  7 24    b.  Four members of the general assembly shall be appointed
  7 25 to assist the Iowa department of public health in completing
  7 26 the review.  The terms of the legislative members shall be for
  7 27 one year beginning and ending as provided in section 69.19 or
  7 28 until their successors are appointed.  Appointments shall
  7 29 comply with sections 69.16 and 69.16A.  Vacancies shall be
  7 30 filled in the same manner as the original appointment.  Each
  7 31 legislative member shall receive compensation pursuant to
  7 32 section 2.10.  The legislative members shall be appointed as
  7 33 follows:
  7 34    (1)  Two members of the senate appointed by the majority
  7 35 leader of the senate after consultation with the minority
  8  1 leader of the senate.
  8  2    (2)  Two members of the house of representatives appointed
  8  3 by the speaker of the house after consultation with the
  8  4 majority leader and the minority leader of the house.
  8  5    2.  The Iowa department of public health, the department of
  8  6 human services, and the department of inspections and appeals
  8  7 shall conduct a review of the regulation of psychiatric
  8  8 medical institutions for children and intermediate care
  8  9 facilities for persons with mental retardation.  The review
  8 10 shall include a review of the moratorium language in section
  8 11 135.63, subsection 4, relating to intermediate care facilities
  8 12 for persons with mental retardation.  The departments shall
  8 13 submit jointly to the general assembly by January 15, 1998, a
  8 14 written report with recommendations to eliminate duplicative
  8 15 regulation of these institutional programs.  
  8 16 
  8 17 
  8 18                                                             
  8 19                               MARY E. KRAMER
  8 20                               President of the Senate
  8 21 
  8 22 
  8 23                                                             
  8 24                               RON J. CORBETT
  8 25                               Speaker of the House
  8 26 
  8 27    I hereby certify that this bill originated in the Senate and
  8 28 is known as Senate File 236, Seventy-seventh General Assembly.
  8 29 
  8 30 
  8 31                                                             
  8 32                               MARY PAT GUNDERSON
  8 33                               Secretary of the Senate
  8 34 Approved                , 1997
  8 35 
  9  1 
  9  2                         
  9  3 TERRY E. BRANSTAD
  9  4 Governor
     

Text: SF00235                           Text: SF00237
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