KRS 216B.061: Actions requiring certificates of need -- Prohibitions against dividing

projects to evade expenditure minimums and against ex parte contacts --

Ambulatory surgical centers.

(1) Unless otherwise provided in this chapter, no person shall do any of the following

without first obtaining a certificate of need:

(a) Establish a health facility;

(b) Obligate a capital expenditure which exceeds the capital expenditure

minimum;

(c) Make a substantial change in the bed capacity of a health facility;

(d) Make a substantial change in a health service;

(e) Make a substantial change in a project;

(f) Acquire major medical equipment;

(g) Increase a geographical area or alter a specific location which has been

designated on a certificate of need or license; or

(h) Transfer an approved certificate of need for the establishment of a new health

facility or the replacement of a licensed facility.

(2) No person shall separate portions of a single project into components in order to

evade any expenditure minimum se t forth in this chapter. For purposes of this

chapter, the acquisition of one (1) or more items of functionally related diagnostic

or therapeutic equipment shall be considered as one (1) project.

(3) No person shall have ex parte contact with the final -decision-making authority

engaged in certificate of need activities regarding a certificate -of-need application

from the commencement of the review cycle to the final decision. If an ex parte

contact occurs, it shall be promptly made a part of the record.

(4) No person shall obligate a capital expenditure in excess of the amount authorized

by an existing certificate of need unless the person has received an administrative

escalation from the cabinet as prescribed by regulation.

(5) No person shall proceed to obligate a capital expenditure under an approved

certificate of need if there has been a substantial change in the project.

(6) A certificate of need shall be issued for a specific location and, when applicable, for

a designated geographical area.

(7) No person shall establish an ambulatory surgical center as defined in KRS

216B.015 without obtaining a certificate of need. An ambulatory surgical center

shall require a certificate of need and license, no twithstanding any exemption

contained in KRS 216B.020.

(8) Nothing in this chapter shall be interpreted to require any ambulatory surgical

center licensed as of July 12, 2012, to obtain a certificate of need to continue

operations and exercise all of the r ights of a licensed health care facility, regardless

of whether it obtained a certificate of need before being licensed.