{"data":{"id":"us-ky/krs-216b.040","jurisdiction":"us-ky","citation":"KRS 216B.040","heading":"Functions of cabinet in administering chapter -- Regulatory authority.","body":"(1) The cabinet shall have four (4) separate and distinct functions in administering this\nchapter:\n(a) To approve or deny certificates of need in accordance with the provisions of\nthis chapter, except as to those applications which have been granted\nnonsubstantive review status by the cabinet;\n(b) To issue and to revoke certificates of need;\n(c) To provide a due process hearing and issue a final determination on all actions\nby the cabinet to deny, revoke, modify, or suspend licenses of health facilities\nand health services issued by the cabinet; and\n(d) To enforce, through legal actions on its own motion, the provisions of this\nchapter and its orders and decisions issued pursuant to its functions.\n(2) The cabinet shall:\n(a) Promulgate administrative regulati ons pursuant to the provisions of KRS\nChapter 13A:\n1. To establish the certificate of need review procedures, including but not\nlimited to, application procedures, notice provisions, procedures for\nreview of completeness of applications, and timetables for  review\ncycles.\n2. To establish criteria for issuance and denial of certificates of need which\nshall be limited to the following considerations:\na. Consistency with plans. Each proposal approved by the cabinet\nshall be consistent with the state health plan , and shall be subject\nto biennial budget authorizations and limitations, and with\nconsideration given to the proposal's impact on health care costs in\nthe Commonwealth. The state health plan shall contain a need\nassessment for long -term care beds, which s hall be based on a\nstatistically valid analysis of the present and future needs of the\nstate as a whole and counties individually. The need assessment\nshall be applied uniformly to all areas of the state. The\nmethodology shall be reviewed and updated on an  annual basis.\nThe long-term care bed need criteria in the state health plan or as\nset forth by the appropriate certificate of need authority shall give\npreference to conversion of personal care beds and acute care beds\nto nursing facility beds, so long as  the state health plan or the\nappropriate certificate of need authority establishes a need in the\naffected counties and the proposed conversions are more cost -\neffective than new construction. The fact that the state health plan\nshall not address the specific type of proposal being reviewed shall\nnot constitute grounds for disapproval of the proposal.\nNotwithstanding any other provision of law, the long -term care\nbed need criteria in the state health plan or as set forth by the\nappropriate certificate of nee d authority shall not consider, factor\nin, or include any continuing care retirement community's nursing\nhome beds established under KRS 216B.015, 216B.020,\n216B.330, and 216B.332;\nb. Need and accessibility. The proposal shall meet an identified need\nin a defined geographic area and be accessible to all residents of\nthe area. A defined geographic area shall be defined as the area the\nproposal seeks to serve, including its demographics, and shall not\nbe limited to geographical boundaries;\nc. Interrelationships and linkages. The proposal shall serve to\naccomplish appropriate and effective linkages with other services,\nfacilities, and elements of the health care system in the region and\nstate, accompanied by assurance of effort to achieve\ncomprehensive care, pr oper utilization of services, and efficient\nfunctioning of the health care system;\nd. Costs, economic feasibility, and resources availability. The\nproposal, when measured against the cost of alternatives for\nmeeting needs, shall be judged to be an effective and economical\nuse of resources, not only of capital investment, but also ongoing\nrequirements for health manpower and operational financing;\ne. Quality of services. The applicant shall be prepared to and capable\nof undertaking and carrying out the responsibilities involved in the\nproposal in a manner consistent with appropriate standards  and\nrequirements assuring the provision of quality health care services,\nas established by the cabinet;\nf. Hospital-based skilled nursing, intermediate care, and personal\ncare beds shall be considered by the cabinet in determining the\nneed for freestanding long-term care beds.\n(b) Conduct public hearings, as requested, in respect to certificate -of-need\napplications, revocations of certificates of need, and denials, suspensions,\nmodifications, or revocations of licenses.\n(3) The cabinet may:\n(a) Issue other administrative regulations necessary for the proper administration\nof this chapter;\n(b) Administer oaths, issue subpoenas, subpoenas duces tecum, and all necessary\nprocess in proceedings brought before or initiated by the cabinet, and the\nprocess shall ex tend to all parts of the Commonwealth. Service of process in\nall proceedings brought before or initiated by the cabinet may be made by\ncertified mail, or in the same manner as other process in civil cases, as the\ncabinet directs;\n(c) Establish by promulgat ion of administrative regulation under KRS Chapter\n13A reasonable application fees for certificates of need;\n(d) Establish a mechanism for issuing advisory opinions to prospective applicants\nfor certificates of need regarding the requirements of a certificate of need; and\n(e) Establish a mechanism for biennial review of projects for compliance with the\nterms of the certificate of need.","path":["KRS Chapter 216B"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48001","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:23Z","sha256":"a5bfac99e1159f1866dc0fa9fd54ed27a3a1090f2dacdb0d305121e7d7566978","source_id":"us-ky","stale":false,"prev":"us-ky/krs-216b.035","next":"us-ky/krs-216b.0415"},"notice":"GroundRules: Original legal text. Not legal advice."}