KRS 216B.065: Notification of intent to acquire facility or equipment -- Conditions

requiring a certificate of need for acquisition -- General Assembly approval

required for certain acquisitions by University of Kentucky, University of

Louisville, or university affiliates.

(1) Before any person enters into a contractual agreement to acquire a licensed health

facility, the person shall notify the cabinet of the intent to acquire the facility or

major medical equipment and of the services to be offered in th e facility and its bed

capacity or the use of the medical equipment. The notice shall be in writing and

shall be filed at least thirty (30) days prior to entry into a contract to acquire the

health facility or major medical equipment with respect to which the notice is given.

(2) A certificate of need shall be required for the acquisition of a health facility or

major medical equipment, only if:

(a) The notice required in this section is not filed and the arrangement will

require the obligation of a capital expenditure which exceeds the capital

expenditure minimum; or

(b) The cabinet finds within thirty (30) days after the date it received notice that

the health services or bed capacity of the health facility will be substantially

changed in being acquired.

(3) Donations, transfers, and leases of major medical equipment and health facilities

shall be considered acquisitions of equipment and facilities, and an acquisition of

medical equipment or a facility for less than fair market value shall be considered

an acquisition if the fair market value exceeds the expenditure minimum.

(4) Before any health facility reduces or terminates a health service or reduces its bed

capacity, the facility shall notify the cabinet of its intent. The notice shall be in

writing an d shall be filed at least thirty (30) days prior to the reduction or

termination. A certificate of need shall be required for the reduction or termination

only if the notice required in this section is not filed.

(5) (a) Before acquiring or constructing an acute care hospital as defined in KRS

216B.0425 that is required to be licensed under KRS 216B.042, the

University of Kentucky or the University of Louisville, or a medical system or

college or school of medicine affiliate thereof, shall first obtain the approval

of the General Assembly by means of an act or joint resolution explicitly

identifying and authorizing the acquisition or construction of the specific

acute care hospital.

(b) The approval required under paragraph (a) of this subsection shall be in

addition to any certificate of need required to acquire or construct an acute

care hospital.

(c) 1. Nothing in this subsection shall be interpreted or construed to apply to a

pediatric teaching hospital as defined in KRS 205.565.

2. Paragraph (a) of this subsection shall not apply to the acquisition or

construction of an acute care hospital within thirty (30) miles of the

affiliated university's primary academic campus.

3. After May 31, 2026, the acquisition or construction of an acute care

hospital valued at less than ten million dollars ($10,000,000) shall be

exempt from the provisions of paragraph (a) of this subsection.