KRS 216B.040: Functions of cabinet in administering chapter -- Regulatory authority.

(1) The cabinet shall have four (4) separate and distinct functions in administering this

chapter:

(a) To approve or deny certificates of need in accordance with the provisions of

this chapter, except as to those applications which have been granted

nonsubstantive review status by the cabinet;

(b) To issue and to revoke certificates of need;

(c) To provide a due process hearing and issue a final determination on all actions

by the cabinet to deny, revoke, modify, or suspend licenses of health facilities

and health services issued by the cabinet; and

(d) To enforce, through legal actions on its own motion, the provisions of this

chapter and its orders and decisions issued pursuant to its functions.

(2) The cabinet shall:

(a) Promulgate administrative regulati ons pursuant to the provisions of KRS

Chapter 13A:

1. To establish the certificate of need review procedures, including but not

limited to, application procedures, notice provisions, procedures for

review of completeness of applications, and timetables for review

cycles.

2. To establish criteria for issuance and denial of certificates of need which

shall be limited to the following considerations:

a. Consistency with plans. Each proposal approved by the cabinet

shall be consistent with the state health plan , and shall be subject

to biennial budget authorizations and limitations, and with

consideration given to the proposal's impact on health care costs in

the Commonwealth. The state health plan shall contain a need

assessment for long -term care beds, which s hall be based on a

statistically valid analysis of the present and future needs of the

state as a whole and counties individually. The need assessment

shall be applied uniformly to all areas of the state. The

methodology shall be reviewed and updated on an annual basis.

The long-term care bed need criteria in the state health plan or as

set forth by the appropriate certificate of need authority shall give

preference to conversion of personal care beds and acute care beds

to nursing facility beds, so long as the state health plan or the

appropriate certificate of need authority establishes a need in the

affected counties and the proposed conversions are more cost -

effective than new construction. The fact that the state health plan

shall not address the specific type of proposal being reviewed shall

not constitute grounds for disapproval of the proposal.

Notwithstanding any other provision of law, the long -term care

bed need criteria in the state health plan or as set forth by the

appropriate certificate of nee d authority shall not consider, factor

in, or include any continuing care retirement community's nursing

home beds established under KRS 216B.015, 216B.020,

216B.330, and 216B.332;

b. Need and accessibility. The proposal shall meet an identified need

in a defined geographic area and be accessible to all residents of

the area. A defined geographic area shall be defined as the area the

proposal seeks to serve, including its demographics, and shall not

be limited to geographical boundaries;

c. Interrelationships and linkages. The proposal shall serve to

accomplish appropriate and effective linkages with other services,

facilities, and elements of the health care system in the region and

state, accompanied by assurance of effort to achieve

comprehensive care, pr oper utilization of services, and efficient

functioning of the health care system;

d. Costs, economic feasibility, and resources availability. The

proposal, when measured against the cost of alternatives for

meeting needs, shall be judged to be an effective and economical

use of resources, not only of capital investment, but also ongoing

requirements for health manpower and operational financing;

e. Quality of services. The applicant shall be prepared to and capable

of undertaking and carrying out the responsibilities involved in the

proposal in a manner consistent with appropriate standards and

requirements assuring the provision of quality health care services,

as established by the cabinet;

f. Hospital-based skilled nursing, intermediate care, and personal

care beds shall be considered by the cabinet in determining the

need for freestanding long-term care beds.

(b) Conduct public hearings, as requested, in respect to certificate -of-need

applications, revocations of certificates of need, and denials, suspensions,

modifications, or revocations of licenses.

(3) The cabinet may:

(a) Issue other administrative regulations necessary for the proper administration

of this chapter;

(b) Administer oaths, issue subpoenas, subpoenas duces tecum, and all necessary

process in proceedings brought before or initiated by the cabinet, and the

process shall ex tend to all parts of the Commonwealth. Service of process in

all proceedings brought before or initiated by the cabinet may be made by

certified mail, or in the same manner as other process in civil cases, as the

cabinet directs;

(c) Establish by promulgat ion of administrative regulation under KRS Chapter

13A reasonable application fees for certificates of need;

(d) Establish a mechanism for issuing advisory opinions to prospective applicants

for certificates of need regarding the requirements of a certificate of need; and

(e) Establish a mechanism for biennial review of projects for compliance with the

terms of the certificate of need.