Modification of License Review Activities Following Sunset of Certificate of Need [26 Pa.B. 6029] Chapter 7 and all other portions of the Health Care Facilities Act pertaining to Certificate of Need (CON) sunset on December 18, 1996.
The purpose of CON was to assure the quality of and access to health care services for Pennsylvanians while controlling health care costs by limiting the supply of certain clinically related health services. Those providers that desired to provide any of the 23 clinically related health services which were subject to CON were required to first obtain a determination of need from the Department.
The Department upon receiving applications for CONs would make (1) a determination of the reviewability of a proposed service; and, if reviewable, (2) a determination of need for the proposed service in the region of the Commonwealth in which it would be offered.
Under CON, the Department's determination of the need for a proposed service included assessing the extent to which it satisfied criteria contained in the State Health Services Plan. The State Health Services Plan addresses the availability, accessibility and affordability of the clinically related health services necessary to meet the health needs of the population of the Commonwealth and contains qualitative and quantitative standards and criteria for the review of CON applications by the Department.
The statutory authority for the State Health Services Plan (35 P. S. § 448.201(6)) will not sunset on December 18, 1996. The criteria and information contained in the State Health Services Plan remain valid for the administration of the Health Care Facilities Act (35 P. S. § 448.101, et seq.)
The CON process included an assessment of the extent to which a proposed service met the quality criteria in the State Health Services Plan. Therefore, to avoid duplication in its review activities, the Department did not include satisfaction of criteria in the State Health Services Plan as part of the licensure process. The sunset of CON would eliminate the Department's review of an applicant's satisfaction of those standards in the State Health Services Plan which are relevant to the licensure determination.
Effective December 18, 1996, the Department, therefore, will modify its license review activities to include a consideration of the applicant's satisfaction of criteria in the State Health Services Plan which are relevant to the determination of whether the applicant satisfies the licensure criteria. In addition, the Department will consider these same criteria at the time when a licensee intends to offer a new service. New services which will be offered by a facility under its current license may be offered without additional licensure notwithstanding that a CON would have been required prior to December 18, 1996. The applicant or licensee shall continue to notify the division in the Department responsible for licensing the service and before providing that service.
An assessment of whether to renew a license or take disciplinary or corrective action under Chapter 8 of the Health Care Facilities Act shall incorporate a consideration of whether relevant criteria in the State Health Services Plan are being met.
Those services which as of December 18, 1996, will no longer be subject to CON but which are offered outside of licensed facilities, have not been subject to Department of Health licensure and have not been provided in the Commonwealth prior to December 18, 1996, should not be offered in the Commonwealth pending the Department's determination of whether these services should now be subject to licensure. The Department will commence an immediate review to determine if any of these services will be subject to licensure. If the Department determines that licensure will not be required for any of these services, it will publish notice in the Pennsylvania Bulletin upon such determination.
The Department will hold a public meeting to coincide with the next meeting of the Health Policy Board, tentatively scheduled for January 21, 1997, to consider whether these services should now be subject to licensure. Notice of the time and place of the public meeting will be published in the Pennsylvania Bulletin.
Under Governor Ridge's Executive Order 1996-1, regarding regulatory review, the Department shall conduct an expedited review of its current regulation of health care facilities. The Department shall promulgate regulations subjecting to licensure the services formerly coveredby certificate of need but which are not licensed by the Department of Health to the extent such licensure is authorized and deemed necessary.
DANIEL F. HOFFMANN, FACHE,
Acting Secretary[Pa.B. Doc. No. 96-2105. Filed for public inspection December 13, 1996, 9:00 a.m.]
