Section He-Hea 905.01 - Criteria In addition to all other requirements in RSA 151-C:7 and He-Hea 303.02 through He-Hea 303.09, all applicants shall meet the following criteria for consideration of a CON for construction, expansion, renovation, or replacement of long-term care beds or facilities:
(a) Applicants shall demonstrate that the anticipated proposed construction cost per bed, cost per square foot, and square foot per bed shall be comparable in cost and size within a 10% margin to the 2015 edition of Marshall Valuation Service, section 15;(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 2015 edition of Marshall Valuation Service, section 15, 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 2015 Marshall Valuation Service;(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 2015 Marshall Valuation Service, section 15: (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) Applicants shall follow the outline of the calculator method set forth in section 10 of the 2015 Marshall Valuation Service 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 "nursing homes (convalescent hospitals)" table in section 15, page 26 of the 2015 Marshall Valuation Service;(2) An adjustment to heating, ventilation, and air-conditioning costs for extreme climate and the system used per the refinements table in section 15, page 36 of the 2015 Marshall Valuation Service;(3) Sprinkler system costs;(4) Story height multipliers;(5) Perimeter multipliers; and(6) Cost multipliers from section 99 of the 2015 Marshall Valuation Service;(g) For construction projects, applicants shall provide a comparison of the proposed construction cost per bed to the 2015 edition of the Marshall Valuation Service, section 15, page 39;(h) For construction projects, applicants shall provide a comparison of the proposed area per bed to the 2015 edition of the Marshall Valuation Service, section 15, page 39;(i) 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;(j) 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;(k) 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) The assumptions used to prepare the projected financial statements;(3) A statement of the sources of funds to finance the proposed project; and(4) Documentation from the applicant's lender, underwriter, or other anticipated source of capital, which includes: (l) Applicants shall demonstrate that resources will be available to support the personnel needs of the proposed construction, expansion, renovation, or replacement of long-term care beds or facilities;(m) Demonstration of resources shall be made in the form of a report that provides a 3-year historical and 3-year projected schedule of all personnel;(n) Applicants filing an application pursuant to RSA 151-C:4, III(a) shall provide with the application documentation identifying the issues that have led to the need for construction, renovation, or replacement, including but not limited to: (1) Life safety code review results;(2) Licensing inspection results;(3) State survey or federal certification review results;(4) Repair or refurbishment needs, such as: b. Paint and finishes; andc. Air handling or plumbing;(5) Space constraints of the physical plant; or(6) Other issues affecting the facility's current or future operation(o) Applicants may document the existence of additional expenses in operations at the facility as a result of needed construction, renovation, or replacement including: (3) Fire safety operations; or(4) Other, which shall be specified;(p) Demonstration of additional expenses shall be made by providing with the application a report specifying the type of expenses incurred, expressed as any combination of: (q) For facilities where structural safety deficiencies, life safety, or inspection violations have been cited, applications shall demonstrate the level of such deficiencies cited by providing copies of reports as produced by a: (1) State or local licensing agency; or(2) National accrediting agency;(r) Applicants shall identify the source of any data or information provided pursuant paragraphs (c) through (q) above.N.H. Admin. Code § He-Hea 905.01
#4096, eff 7-22-86; ss by #5270, eff 11-6-91, EXPIRED: 11-6-97
New. #6654, INTERIM, eff 12-18-97, EXPIRED: 4-17-98
New. #6801, eff 7-15-98; ss by #7442, eff 2-2-01; ss by #8917, eff 6-22-07
Amended by Volume XXXV Number 49, Filed December 10, 2015, Proposed by #10977, Effective 11/20/2015, Expires 11/20/2025.