Section He-Hea 1103.01 - General Criteria In addition to the criteria included in RSA 151-C:7 and He-Hea 303.02 through He-Hea 303.09, each applicant shall meet the following criteria when applying for a CON for adult cardiac catheterization laboratory services:
(a) Applicants shall demonstrate that the anticipated proposed construction cost per square foot shall be comparable within a 10% margin to the 2013 edition of Marshall Valuation Service, section 15, as referenced in Appendix II of these rules;(b) Demonstration of project costs shall be made in the form of a report included with the application which provides:(1) A detail of the costs and space by department or area affected by the proposed project;(2) A comparison of these costs which shall be within 10% of the 2013 edition of Marshall Valuation Service, section 15, as referenced in Appendix II of these rules, for the proposed class and type of construction; and(3) An identification of the square footage for each department or area before and after the project;(c) Applicants shall include a report in the application which provides: (1) An analysis of the class and quality of construction pursuant to section one of the 2013 Marshall Valuation Service, as referenced in Appendix II of these rules;(2) The allocation of costs within a multiple use building;(3) The allocations of site costs and land costs where facilities are proposed to have multiple uses;(4) The methodology used in calculating construction costs for renovations;(5) The methodology used in calculating construction costs involving leasehold improvements; and(6) The anticipated useful life of the building for depreciation purposes;(d) The following construction costs shall be compared with the 2013 Marshall Valuation Service, section 15,as referenced in Appendix II of these rules:(1) Total costs associated with:(3) Architectural and engineering fees;(4) Site preparation for the building;(5) Utilities from structure to lot line;(6) Insurance costs during construction; and(7) Interest costs during construction;(e) The applicant shall follow the outline of the calculator method set forth in section 10 of the 2013 Marshall Valuation Service, as referenced in Appendix II of these rules, to determine construction costs;(f) The costs and factors to take into account pursuant to (e) above shall include: (1) The base cost found in the general hospital table in section 15, page 24 of the 2013 Marshall Valuation Service, as referenced in Appendix II of these rules;(2) An adjustment to heating, ventilation and air-conditioning costs for extreme climate;(3) Sprinkler system costs;(4) Story height multipliers;(5) Perimeter multipliers; and(6) Cost multipliers from section 99 of the 2013 Marshall Valuation Service, as referenced in Appendix II of these rules;(g) Applicants shall describe anticipated operational cost savings that may occur as a result of the project due to:(1) Consolidation of services;(2) Improved heating and maintenance costs;(3) Environmental design of the constructed or renovated space;(4) Space for future expansion; or(5) Other factors not listed above;(h) The expansion, renovation or replacement of the acute care facility shall be financially feasible;(i) In order to assess the current and long-range financial feasibility of the proposed project, applicants shall demonstrate that resources:(1) Are available to fund the proposed capital costs and operating costs;(2) Will be available to maintain operations in the event of interruptions to cash flow; and(3) Will be available to ensure the continued operation of the proposed project;(j) Demonstration of financial feasibility shall be made by providing with the application: (1) Copies of the facility's 3-year historical and 3-year projected financial statements; (2) A statement of the sources of funds to finance the proposed project; and(3) Documentation from the applicant's lender, underwriter or other anticipated source of capital, which includes: (k) Applicants shall document the assumptions used to determine the overall financial feasibility of the proposed project;(l) Documentation of assumptions shall be made in the form of a report including the following: (1) The assumptions used to prepare the projected financial statements; and(2) Other assumptions the applicant considers pertinent to the project's feasibility;(m) Applicants shall identify the source of any data or information provided pursuant paragraphs (c) through (l) above;(n) Financial resources shall be available to ensure the continued operation of the proposed project. Documentation shall include an analysis of the existing market for cardiac catheterization services and proposed project's projected market share and utilization; and(o) Applicants shall document the existence of market share for new or expanded diagnostic cardiac catheterization services by providing with the application an analysis of the existing market for cardiac catheterization services and projected utilization figures.N.H. Admin. Code § He-Hea 1103.01
#4326, eff 10-21-87; ss by #4923, eff 8-23-90; ss by #5237, eff 9-27-91, EXPIRED: 9-27-97
New. #6931, eff 1-14-99; ss by #8375, eff 6-21-05; ss by #10448, eff 10-25-13