Bill Text: FL S0268 | 2014 | Regular Session | Comm Sub
Bill Title: Certificates of Need
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 287 (Ch. 2014-110) [S0268 Detail]
Download: Florida-2014-S0268-Comm_Sub.html
Florida Senate - 2014 CS for CS for SB 268 By the Committees on Children, Families, and Elder Affairs; and Health Policy; and Senators Grimsley and Diaz de la Portilla 586-02761-14 2014268c2 1 A bill to be entitled 2 An act relating to certificates of need; amending s. 3 408.034, F.S.; decreasing the subdistrict average 4 occupancy rate that the Agency for Health Care 5 Administration is required to maintain as a goal of 6 its nursing-home-bed-need methodology; conforming a 7 provision to changes made by the act; authorizing an 8 applicant to aggregate the need of geographically 9 contiguous subdistricts within a district for a 10 proposed community nursing home under certain 11 circumstances; requiring the proposed nursing home 12 site to be located in the subdistrict with the greater 13 need under certain circumstances; recognizing an 14 additional positive application factor for an 15 applicant who voluntarily relinquishes certain nursing 16 home beds; requiring the applicant to demonstrate that 17 it meets certain requirements; amending s. 408.036, 18 F.S.; providing that, under certain circumstances, 19 replacement of a nursing home and relocation of a 20 portion of a nursing home’s licensed beds to another 21 facility, or to establish a new facility, is a health 22 care-related project subject to expedited review; 23 conforming a cross-reference; revising the 24 requirements for projects that are exempted from 25 applying for a certificate of need; repealing s. 26 408.0435, F.S., relating to the moratorium on the 27 approval of certificates of need for additional 28 community nursing home beds; creating s. 408.0436, 29 F.S.; prohibiting the agency from approving a 30 certificate-of-need application for new community 31 nursing home beds under certain circumstances; 32 defining the term “batching cycle”; providing a 33 repeal; providing an effective date. 34 35 Be It Enacted by the Legislature of the State of Florida: 36 37 Section 1. Subsection (5) of section 408.034, Florida 38 Statutes, is amended, present subsection (6) of that section is 39 redesignated as subsection (8), and a new subsection (6) and 40 subsection (7) are added to that section, to read: 41 408.034 Duties and responsibilities of agency; rules.— 42 (5) The agency shall establish by rule a nursing-home-bed 43 need methodology that has a goal of maintaining a subdistrict 44 average occupancy rate of 9294percentand that reduces the45community nursing home bed need for the areas of the state where46the agency establishes pilot community diversion programs47through the Title XIX aging waiver program. 48 (6) If nursing home bed need is determined to exist in 49 geographically contiguous subdistricts within a district, an 50 applicant may aggregate the subdistricts’ need for a new 51 community nursing home in one of the subdistricts. If need is 52 aggregated from two subdistricts, the proposed nursing home site 53 must be located in the subdistrict with the greater need as 54 published by the agency in the Florida Administrative Register. 55 However, if need is aggregated from more than two subdistricts, 56 the location of the proposed nursing home site must provide 57 reasonable geographic access for residents in the respective 58 subdistricts given the relative bed need in each. 59 (7) If nursing home bed need is determined to exist in a 60 subdistrict, an additional positive application factor may be 61 recognized in the application review process for an applicant 62 who agrees to voluntarily relinquish licensed nursing home beds 63 in one or more subdistricts where there is no calculated need. 64 The applicant must demonstrate that it operates, controls, or 65 has an agreement with another licensed community nursing home to 66 ensure that beds are voluntarily relinquished if the application 67 is approved and the applicant is licensed. 68 Section 2. Subsection (2) and paragraphs (f), (k), (p), and 69 (q) of subsection (3) of section 408.036, Florida Statutes, are 70 amended to read: 71 408.036 Projects subject to review; exemptions.— 72 (2) PROJECTS SUBJECT TO EXPEDITED REVIEW.—Unless exempt 73 pursuant to subsection (3), the following projects are subject 74 toanexpedited reviewshall include, but not be limited to: 75 (a)ATransfer of a certificate of need, except that when 76 an existing hospital is acquired by a purchaser, all 77 certificates of need issued to the hospital which are not yet 78 operational shall be acquired by the purchaser,without need for 79 a transfer. 80 (b) Replacement of a nursing homewithin the same district, 81 if the proposed project site islocated within a geographic area82that contains at least 65 percent of the facility’s current83residents and iswithin a 30-mile radius of the replaced nursing 84 home. If the proposed project site is outside the subdistrict 85 where the replaced nursing home is located, the prior 6-month 86 occupancy rate for licensed community nursing homes in the 87 proposed subdistrict must be at least 85 percent in accordance 88 with the agency’s most recently published inventory. 89 (c) Replacement of a nursing home within the same district, 90 if the proposed project site is outside a 30-mile radius of the 91 replaced nursing home but within the same subdistrict or a 92 geographically contiguous subdistrict. If the proposed project 93 site is in the geographically contiguous subdistrict, the prior 94 6-month occupancy rate for licensed community nursing homes for 95 that subdistrict must be at least 85 percent in accordance with 96 the agency’s most recently published inventory. 97 (d)(c)Relocation of a portion of a nursing home’s licensed 98 beds to anotherafacility or to establish a new facility within 99 the same district or within a geographically contiguous 100 district, if the relocation is within a 30-mile radius of the 101 existing facility and the total number of nursing home beds in 102 the statedistrictdoes not increase. 103 (e)(d)TheNew construction of a community nursing home in 104 a retirement community as further provided in this paragraph. 105 1. Expedited review under this paragraph is available if 106 all of the following criteria are met: 107 a. The residential use area of the retirement community is 108 deed-restricted as housing for older persons as defined in s. 109 760.29(4)(b). 110 b. The retirement community is located in a county in which 111 25 percent or more of its population is age 65 and older. 112 c. The retirement community is located in a county that has 113 a rate of no more than 16.1 beds per 1,000 persons age 65 years 114 or older. The rate shall be determined by using the current 115 number of licensed and approved community nursing home beds in 116 the county per the agency’s most recent published inventory. 117 d. The retirement community has a population of at least 118 8,000 residents within the county, based on a population data 119 source accepted by the agency. 120 e. The number of proposed community nursing home beds in an 121 application does not exceed the projected bed need after 122 applying the rate of 16.1 beds per 1,000 persons aged 65 years 123 and older projected for the county 3 years into the future using 124 the estimates adopted by the agency reduced by, after125subtractingthe agency’s most recently published inventory of 126 licensed and approved community nursing home beds in the county 127per the agency’s most recent published inventory. 128 2. No more than 120 community nursing home beds shall be 129 approved for a qualified retirement community under each request 130for applicationfor expedited review. Subsequent requests for 131 expedited review under this process mayshallnot be made until 132 2 years after construction of the facility has commenced or 1 133 year after the beds approved through the initial request are 134 licensed, whichever occurs first. 135 3. The total number of community nursing home beds which 136 may be approved for any single deed-restricted community 137 pursuant to this paragraph mayshallnot exceed 240, regardless 138 of whether the retirement community is located in more than one 139 qualifying county. 140 4. Each nursing home facility approved under this paragraph 141 mustshallbe dually certified for participation in the Medicare 142 and Medicaid programs. 143 5. Each nursing home facility approved under this paragraph 144 mustshallbe at least 1 mile, as measured over publicly owned 145 roadways, from an existing approved and licensed community 146 nursing home, measured over publicly owned roadways. 1476. Section 408.0435 does not apply to this paragraph.148 6.7.A retirement community requesting expedited review 149 under this paragraph shall submit a written request to the 150 agency foranexpedited review. The request mustshallinclude 151 the number of beds to be added and provide evidence of 152 compliance with the criteria specified in subparagraph 1. 153 7.8.After verifying that the retirement community meets 154 the criteria for expedited review specified in subparagraph 1., 155 the agency shall publicly notice in the Florida Administrative 156 Register that a request for an expedited review has been 157 submitted by a qualifying retirement community and that the 158 qualifying retirement community intends to make land available 159 for the construction and operation of a community nursing home. 160 The agency’s notice mustshallidentify where potential 161 applicants can obtain information describing the sales price of, 162 or terms of the land lease for, the property on which the 163 project will be located and the requirements established by the 164 retirement community. The agency notice mustshallalso specify 165 the deadline for submission of theanycertificate-of-need 166 application, which mayshallnot be earlier than the 91st day or 167and not belater than the 125th day after the date the notice 168 appears in the Florida Administrative Register. 169 8.9.The qualified retirement community shall make land 170 available to applicants it deems to have met its requirements 171 for the construction and operation of a community nursing home 172 but maywillsell or lease the land only to the applicant that 173 is issued a certificate of need by the agency underthe174provisions ofthis paragraph. 175 a. A certificate-of-needcertificate of needapplication 176 submitted underpursuant tothis paragraph mustshallidentify 177 the intended site for the project within the retirement 178 community and the anticipated costs for the project based on 179 that site. The application mustshallalso include written 180 evidence that the retirement community has determined that both 181 the provider submitting the application and the project satisfy 182proposed by that provider satisfiesits requirements for the 183 project. 184 b. If the retirement community determinescommunity’s185determinationthat more than one provider satisfies its 186 requirements for the project, it may notifydoes not preclude187the retirement community from notifyingthe agency of the 188 provider it prefers. 189 9.10.The agency shall review each submitted application 190submitted shall be reviewed by the agency. If multiple 191 applications are submitted for atheprojectaspublished 192 pursuant to subparagraph 7.8.,thenthe agency shall review the 193 competing applicationsshall be reviewed by the agency. 194 195 The agency shall develop rules to implement theprovisions for196 expedited review process, including time schedule, application 197 content thatwhichmay be reduced from the full requirements of 198 s. 408.037(1), and application processing. 199 (3) EXEMPTIONS.—Upon request, the following projects are 200 subject to exemption from the provisions of subsection (1): 201 (f) For the addition of nursing home beds licensed under 202 chapter 400 in a number not exceeding 30 total beds or 25 203 percent of the number of beds licensed in the facility being 204 replaced under paragraph (2)(b), paragraph (2)(c), or paragraph 205 (p), whichever is lessFor the creation of a single nursing home206within a district by combining licensed beds from two or more207licensed nursing homes within such district, regardless of208subdistrict boundaries, if 50 percent of the beds in the created209nursing home are transferred from the only nursing home in a210county and its utilization data demonstrate that it had an211occupancy rate of less than 75 percent for the 12-month period212ending 90 days before the request for the exemption.This213paragraph is repealed upon the expiration of the moratorium214established in s. 408.0435(1).215 (k) For the addition of nursing home beds licensed under 216 chapter 400 in a number not exceeding 10 total beds or 10 217 percent of the number of beds licensed in the facility being 218 expanded, whichever is greater; or, for the addition of nursing 219 home beds licensed under chapter 400 at a facility that has been 220 designated as a Gold Seal nursing home under s. 400.235 in a 221 number not exceeding 20 total beds or 10 percent of the number 222 of licensed beds in the facility being expanded, whichever is 223 greater. 224 1. In addition to any other documentation required by the 225 agency, a request for exemption submitted under this paragraph 226 must certify that: 227 a.Certify thatThe facility has not had any class I or 228 class II deficiencies within the 30 months preceding the request 229for addition. 230 b.Certify thatThe prior 12-month average occupancy rate 231 for the nursing home beds at the facility meets or exceeds 9496232 percent. 233 c.Certify thatAny beds authorized for the facility under 234 this paragraph before the date of the current request for an 235 exemption have been licensed and operational for at least 12 236 months. 237 2. The timeframes and monitoring process specified in s. 238 408.040(2)(a)-(c) apply to any exemption issued under this 239 paragraph. 240 3. The agency shall count beds authorized under this 241 paragraph as approved beds in the published inventory of nursing 242 home beds until the beds are licensed. 243 (p) For replacement of a licensed nursing home on the same 244 site, or within 53miles of the same site if within the same 245 subdistrict, if the number of licensed beds does not increase 246 except as allowed by paragraph (f). 247 (q) For consolidation or combination of licensed nursing 248 homes or transfer of beds between licensed nursing homes within 249 the same planning districtsubdistrict, byproviders that250operate multiplenursing homes with any shared controlled 251 interest within that planning districtsubdistrict, if there is 252 no increase in the planning districtsubdistricttotal number of 253 nursing home beds and the site of the relocation is not more 254 than 30 miles from the original location. 255 Section 3. Section 408.0435, Florida Statutes, is repealed. 256 Section 4. Section 408.0436, Florida Statutes, is created 257 to read: 258 408.0436 Limitation on nursing home certificates of need. 259 Notwithstanding the establishment of need as provided in this 260 chapter, the agency may not approve a certificate-of-need 261 application for new community nursing home beds following the 262 batching cycle in which the cumulative number of new community 263 nursing home beds approved from July 1, 2014 to June 30, 2017, 264 equals or exceeds 3,750. As used in this section, the term 265 “batching cycle” means the grouping for comparative review of 266 certificate-of-need applications submitted for beds, services, 267 or programs having a like certificate-of-need methodology or 268 licensing category in the same planning horizon and the same 269 applicable district or subdistrict. This section is repealed 270 July 1, 2017. 271 Section 5. This act shall take effect July 1, 2014.