Current through Register Vol. 54, No. 49, December 7, 2024
Section 301.6 - Procedures for agency review(a) Procedures for notification and review of proposed capital expenditures shall include the following:(1) A health care facility or health maintenance organization proposing to make a capital expenditure subject to this chapter shall provide written notice of its intent to make such capital expenditure to the designated planning agency not less than 60 days prior to the date on which the obligation is expected to be incurred. The designated planning agency shall forward the letter of intent to the appropriate health systems agency.(2) The notice shall be submitted on an application form provided by the designated planning agency and shall contain the information as may be required by the application and the health systems agency to meet the needs of all the agencies whose respective fields of responsibility cover the proposed expenditure. The designated planning agency shall promptly publicize its receipt of the notice through local newspapers and public information channels.(3) If the application under this subsection is found by the health systems agency to be incomplete, the agency shall notify the person proposing the capital expenditure within 15 days of its receipt of the incomplete application, advising the person of the additional information required. Where the timely notification of incompleteness is provided, the period within which the designated planning agency is required to notify the person proposing the expenditure that the expenditure is not approved, shall run from the date of receipt by the health systems agency of an application containing the additional information.(4) The health systems agency shall complete its review of an application for a capital expenditure and send its findings and recommendation to the designated planning agency no later than 70 days after receipt of a complete application.(5) When an applicant makes a substantial change in its project during review by the designated planning agency, the applicant shall withdraw the application and resubmit it for a full review under paragraph (1). When a substantial change is made by the applicant during review by the health systems agency, the same procedure shall apply unless waived by the health systems agency. A "substantial change," for purposes of this paragraph, shall mean any alteration to a project which changes the site; changes the project cost in excess of 20% or a limit established by the health systems agency, whichever is smaller; changes the number of beds by 5% or five beds, whichever is smaller; or substantially changes the services provided by the health care facility.(6) The designated planning agency shall within 90 days after the receipt of a complete application unless the applicant agrees to a longer period, provide written notification to the applicant of its decision to recommend approval or disapproval of a project to the Secretary of HHS or of its decision not to review a project.(7) A health systems agency may, with the approval of the designated planning agency, give a nonsubstantive review, that is, less than a full review, to a proposed capital expenditure. Factors which will be considered in determining when to permit a nonsubstantive review include a project cost of less than $100,000; replacement of plant or equipment as a result of a natural disaster, fire, equipment failure or similar occurrence requiring immediate replacement in order to maintain continuity of operation; or alteration strictly for remedying Life Safety Code deficiencies, supported by an inspection report from the appropriate agency, when the need is apparent.(8) The failure of the designated planning agency to provide notification within the time limitations set forth in this section shall have the effect of a recommendation of approval to the Secretary of HHS.(9) When the designated planning agency notifies an applicant of its intention to recommend disapproval of the proposed expenditure to the Secretary of HHS, it shall include the reasons therefor and a summary of the findings and recommendations of the other agencies with which such agency has consulted and shall provide an opportunity for a fair hearing with respect to the findings and recommendations of the designated planning agency at the request of the applicant.(10) Copies of the findings and recommendations of the designated planning agency shall also be sent to the other agencies consulted, and shall be publicized through local newspapers and public information channels.(b) A person proposing a capital expenditure may withdraw his previously filed application without prejudice by filing simultaneous written notification of the withdrawal with the health systems agency and the designated planning agency at any time prior to his receipt of notice from the designated planning agency of its intention to make a recommendation to the Secretary of HHS. This section cited in 28 Pa. Code § 301.3 (relating to expenditures covered); 28 Pa. Code § 301.9 (relating to determination by the Secretary of HHS); 28 Pa. Code § 301.10 (relating to continuing effect of determinations); and 28 Pa. Code § 301.11 (relating to phase-out of health facilities review program).