HB 5286 — Eliminating the ability to sub-contract under Certificate of Need

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for House Bill 5286 By Delegates Worrell and Dean [Introduced[Originating Januaryin 29,the 2024;Committee on Health and Human Resources;

ReferredReported to the Committee on HealthFebruary and6, Human2024] Resources]CS Intrfor HB 2024R31615286 A BILL to amend and reenact §16-2D-8§16-2D-17 of the Code of West Virginia, 1931, as amended, relating to eliminating the ability to sub-contract in the certificate of need process.

§16-2D-8.§16-2D-17.

ProposedNontransference, healthtime servicesperiod thatcompliance requireand awithdrawal of certificate of need.

(a) ExceptA ascertificate providedof inneed §16-2D-9,is §16-2D-10,nontransferable and §16-2D-11is ofvalid thisfor code,a themaximum following proposed health services may not be acquired, offered, or developed within this state except upon approval of andone receiptyear offrom athe certificatedate of needissuance. as provided by this article:

(1)Upon Thethe construction,expiration development,of acquisition,the certificate or otherduring establishmentthe ofcertification aperiod, the person proposing the proposed health careservice facility;shall provide the authority information on the development of the project as the authority may request.

(2) The partialauthority orshall totalperiodically closuremonitor ofcapital aexpenditures healthobligated careunder facilitycertificates, determine whether sufficient progress is being made in meeting the timetable specified in the approved application for the certificate and whether there has been compliance with whichthe aapplication capitaland expenditureany isconditions associated;of certification.

(3)The (A)certificate Anof obligationneed formay abe capitalextended expenditureby incurredthe byauthority orfor onadditional behalfperiods of atime healthas careare facilityreasonably innecessary excessto ofexpeditiously complete the expenditureproject. minimum;

or(b) (B)A Ancertificate obligationof forneed amay capitalno expenditurelonger incurredbe byin aeffect, personand may no longer be required, after written notice of substantial compliance with the approved application and any conditions of certification is issued to acquirethe aapplicant, healthafter carethe facility.activity is undertaken for which the certificate of need was issued, and after the authority is provided written notice of such undertaking.

(4)(c) AnA obligationperson forproposing a capitalproposed expenditurehealth isservice consideredmay tonot be incurredissued bya orlicense, onif behalfapplicable, until the authority has issued a written notice of substantial compliance with the approved application and any conditions of certification, nor may a proposed health careservice facility:be used until the person has received such notice.

(A)A Whenproposed ahealth validservice contractmay isnot enteredbe intofound byto orbe onin behalfsubstantial ofcompliance with the healthapproved careapplication facilityand forany conditions of certification if there is a substantial change in the construction,approved acquisition,proposed lease,health orservice financingfor ofwhich change a capitalcertificate asset;of need has not been issued.

(B)(d) When(1) theA healthcertificate careof facilityneed takesmay formalbe actionwithdrawn to commit its own funds for a construction project undertaken by the healthauthority carefor: facility as its own contractor;

or1 (C)CS Infor theHB case5286 of(A) donatedNoncompliance property,with onany theconditions dateof oncertification; which the gift is completed under state law.

(5)(B) A substantial change toin thean bedapproved capacityproposed of a health careservice facilityfor with which change a capitalcertificate expenditureof isneed associated;has not been issued;

Intr(C) HBMaterial 2024R3161misrepresentation (6)by Thean additionapplicant ofupon ventilatorwhich servicesthe byauthority arelied hospital;in making its decision;

(7)or The(D) eliminationOther ofreasons healththat servicesmay previouslybe offeredestablished on a regular basis by orthe onauthority behalfin oflegislative arules healthadopted carepursuant facilityto whichsection isfour associatedof withthis aarticle. capital expenditure;

(8)(2) (A)Any Adecision substantialof change to the bedauthority capacityto orwithdraw healtha servicescertificate offered by or on behalf of aneed healthshall carebe facility,based whethersolely oron: not the change is associated with a proposed capital expenditure;

(B)(A) IfThe theprovisions changeof isthis associatedarticle withand aon previouslegislative capitalrules expenditureadopted forin whichaccordance awith certificatesection four of needthis wasarticle; issued;

and (C)(B) IfThe therecord changeestablished willin occuradministrative withinhearing twoheld yearswith afterrespect theto date the activityauthority’s whichproposal wasto associatedwithdraw with the previouslycertificate. approved capital expenditure was undertaken.

(9)(3) TheIn acquisitionthe case of majora medicalproposed equipment;withdrawal of a certificate of need:

(10)(A) AAfter substantialcommencement changeof in an approvedadministrative healthhearing serviceon forthe whichauthority’s proposal to withdraw a certificate of need and before a decision is inmade effect;on withdrawal, there may be no ex parte contacts between:

(11)(i) AnThe expansionholder of the servicecertificate areaof forneed, hospiceany orperson homeacting healthon agencybehalf regardless of the timeholder, periodor inany whichperson thein expansionfavor isof contemplatedthe orwithdrawal; made;

and (12)(ii) TheAny additionperson ofin healththe servicesauthority offeredwho byexercises orresponsibility onrespecting behalfwithdrawal of a health care facility which were not offered on a regular basis by or on behalf of the healthcertificate; care facility within the 12-month period prior to the time the services would be offered.

(b)(B) The followingauthority healthshall servicesfollow arethe requiredreview toprocedure obtainestablished ain certificatesection ofthirteen; need regardless of the minimum expenditure:

(1)and Providing(C) radiationAppeals therapy;of withdrawals of certificates of need shall be made pursuant to section sixteen of this article.

(2)(4) ProvidingA computedproposed tomography;health service may not be acquired, offered, or developed within this state if a certificate of need authorizing that proposed health service has been withdrawn by the authority 2 CS for HB 5286 and the acquisition, offering, or developing of the proposed health service is subject to review under this article.

(3)(e) ProvidingA positronperson emissionor tomography;health care facility who is authorized to provide or has obtained a certificate of need to provide personal care services may not use a subcontractor arrangement to provide such personal care services.

(4) Providing cardiac surgery;

(5) Providing fixed magnetic resonance imaging;

(6) Providing comprehensive medical rehabilitation;

Intr HB 2024R3161 (7) Establishing an ambulatory care center;

(8) Establishing an ambulatory surgical center;

(9) Providing diagnostic imaging;

(10) Providing cardiac catheterization services;

(11) Constructing, developing, acquiring, or establishing kidney disease treatment centers, including freestanding hemodialysis units;

(12) Providing megavoltage radiation therapy;

(13) Providing surgical services;

(14) Establishing operating rooms;

(15) Adding acute care beds;

(16) Providing intellectual developmental disabilities services;