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Certificate of Need Activity — 1999

 

December 30, 1999 — The three certificate of need applications to provide additional outpatient surgery services in Fairbanks from Fairbanks Ambulatory Surgery Center (Dr. David McGuire), Tanana Valley Clinic, and Fairbanks Memorial Hospital were all denied due to lack of need. Two new surgery suites will not be needed until sometime between 2004 to 2007. The three projects are estimated to cost $5.5 million, $4.2 million, and $1.3 million respectively. Tanana Valley Clinic and Fairbanks Ambulatory Surgery Center have appealed the decision.

 

November 16, 1999 — South Peninsula Hospital 's certificate of need application to remodel and expand was approved for 5 nursing beds and remodel and expansion of Emergency Services, Diagnostic Imaging, Surgery, Pharmacy, Acute Care Nursing, Central Sterile Processing, Physical Therapy, Laboratory. The applicant had requested 10 beds. The project will add 21,600 approved square feet of new construction and renovation of 14,265 square feet at a total approved cost of $9,238,756. Construction is planned to start in June of 1999, with completion by June 2002. The approved completion date is Jan. 31, 2003 .

 

October 8, 1999 — The Providence CON application to remodel and reconfigure 35,000 square feet of space and add 25,000 square feet of space in the North Tower for the ER, general surgery, open-heart surgery, endoscopy, radiology and laboratory was partially approved. The proposed expansion would add three general surgery suites and one open-heart surgery suite, additional pre-operative and post-operative/recovery bays, a fourth endoscopy room with fluoroscopy capabilities, and 15 new patient treatment bays and support areas for the ER. The project was approved with the following conditions: the addition of the operating suite that is proposed for open heart surgery use shall not be dedicated for this purpose or used exclusively for this purpose until November 18, 2003 . The expenditure of $25,000,000 for this project is approved with a completion date of November 18, 2003 .

 

June 28, 1999 — The Department has accepted a request from the Alaska Psychiatric Institute to withdraw their application to modify the API 2000 certificate of need. The project proposed replacing the existing facility with a 54 bed facility at a cost of $50,868,000 by the end of April, 2002.  The decision to withdraw the CON was based on a need to allow more time for planning the new facility and looking at alternatives.  

 

May 6, 1999 — The Fairbanks Memorial Hospital certificate of need  for the expansion and relocation of the Mental Health Unit was approved. The project will move the Mental Health Unit from the current location on the second floor of the facility to the fourth floor of the central tower and will increase the number of mental health beds from 9 to 20 beds. Conditions of approval are that the applicant may spend $3,388,000 on the project which must be completed by August 31, 2000 and the total number of licensed acute care beds will be reduced from 166 beds to 162 beds.

 

May 6, 1999 — The Valley Hospital certificate of need to remodel and expand at the hospital in Palmer and the West Valley campus in Wasilla was approved. The project includes expansion of the Medical/Surgical area, Emergency Room and OB ; consolidation of ancillary services at the West Valley Campus; and construction of a new entryway at both sites. Conditions of approval are:  the applicant may spend $16,434,000 ($10 million for construction and $6.4 million in interest) and must be completed by July 30, 2001 . The facility will be licensed for 36 beds including 24 Medical/Surgical (4 swing), 4 ICU beds, and 8 OB beds.  

 

April 20, 1999 — South Peninsula Hospital 's certificate of need application to remodel and expand was approved with the exception of 10 nursing beds requested.  Activities approved include remodel and expansion of Emergency Services, Diagnostic Imaging, Surgery, Pharmacy, Acute Care Nursing, Central Sterile Processing, Physical Therapy, Laboratory, and to add 10 long-term care beds was partially approved.   The project will add 21,600 square feet of new construction and renovation of 14,265 square feet at a total approved cost of $9,238,756. Construction is planned to start in June of 1999, with completion by June 2002.  The approved completion date is January 31, 2003 .

February 18, 1999 — The $1.4 million Central Peninsula Hospital certificate of need application for an MRI was approved by the Commissioner.  The project must be completed by December 31, 1999 .

Certificate of Need Appeals

September 22, 1998 – October 26, 1999 — Fairbanks Surgery Center, Inc. (FSC) filed an appeal of the decision to deny their  modification application to extend the completion date of a certificate of need to build a freestanding surgery center in Fairbanks . The project had originally been approved in September 1995 to build a 5,400-sq. ft. freestanding ambulatory surgery facility, with two surgery suites, one procedure room, and ancillary support areas at a cost of $2,894,606. The extension was denied due to lack of progress and reduced need. The Department's motion for summary judgment that it had a reasonable basis for denying the modification application because there was not a continuing need for two additional surgery suites in the Fairbanks area was granted. 

 

Letters of Intent

November 3, 1999 — Peninsula Internal Medicine, PC in Soldotna  submitted a letter of intent for a medical office building that included one endoscopy suite. A determination was made that this project could not be considered a health care facility for the purposes of the certificate of need program and therefore a certificate of need was not required.  The cost of the facility was given as $684,954 and was complete at the time of submission of the letter of intent except for the installation of equipment.

 

October 14, 1999 — HEALTHSOUTH submitted a letter of intent on October 14, 1998 for a $14-15 million integrated Medical Plaza . The 68,000 sq. ft project was to be built on property leased from Alaska Pacific University and included a 22,000 sq. ft. ambulatory surgery center, MRI capabilities and diagnostic, and physical therapy services. A determination was made that a CON was required. The LOI expired on Oct. 14, 1999 because no CON was submitted.

 

August 19, 1999 — Alaska Regional Hospital submitted a letter of intent for a $22 million project to upgrade the hospital.  Areas to be remodeled included a Doctor’s lounge and conference area; second floor lobby and admitting; radiology; surgery; women’s services and labor and delivery. No decision has been made on whether a certificate of need is required, additional information has been requested and the Department is awaiting its submission.

 

July 19, 1999 — Providence submitted a letter of intent to replace Cardiac Catheterization Laboratory #2. The activity would be replaced by a bi-plane unit and they would transition all 3 existing Cardiac Catheterization labs to cineless technology which is a change from filming of procedures to CD-Rom technology. The total project cost is estimated at $1.5 million with a completion date planned for January 2000. No determination has been made due to further information was requested but has not been received yet.

 

July 19, 1999 — A letter of intent was received from Providence Alaska Medical Center for expansion of the Pharmacy Department.  The total project is expected to cost $590,000 and the planned date of completion is August 1999.  A determination was made that a certificate of need was not required because the project cost was under the $1 million threshold.

 

June 8, 1999 — Providence submitted a letter of intent for construction of a medical office building and an outpatient clinic and training program for the Alaska Family Practice Residency Project. A determination was made that the project did not require a certificate of need application because the project was for construction of a medical office building and therefore not a "health care facility."  According to AS 18.07.111(9)(B), the definition of a health care facility excludes "the offices of private physicians or dentists."

 

June 7, 1999 — A letter of intent was received from Providence for a new 500-space employee parking structure costing $8.2 million. The construction is to be completed by July 1999. A determination was made that no CON was needed because it was not a health care facility.

 

March 10, 1999 — Tanana Valley Clinic submitted a new letter of intent to build an ambulatory surgery center at their clinic on Noble Street in Fairbanks . The project includes one surgery suite, and two procedure rooms and is projected to cost $1,650,000.  The proposed completion date is early in the year 2000.  A determination was made that the project will require a certificate of need. The applicant may submit a certificate of need at any time between May 9, 1999 and March 10, 2000 .

 

February 16, 1999 — A determination was made that Sitka Community Hospital did not need to submit a certificate of need to convert two acute care beds into two long-term care beds. The proposed project is expected to cost $61,533 for the conversion and reconfiguration of other areas in order to accommodate this conversion. The project is expected to be complete by July 1, 1999. A certificate of need was not required because the project will cost less than $1 million.

 

February 11, 1999 — Tanana Valley Clinic withdrew a letter of intent to build an ambulatory surgery center in Fairbanks .

 

February 8, 1999 — Fairbanks Memorial Hospital submitted a letter of intent for an ambulatory surgery center in Fairbanks . The 8,500 sq. ft. facility would cost a total of $3.75 million including equipment. If approved, the project is planned to be completed by January of 2000.

 

January 12, 1999 — Charter North submitted an letter of intent for a 74-bed psychiatric acute care hospital that would primarily serve children and adolescents. The project would cost $25 million and be completed by the summer of 2001. The project developed as a means of replacing the existing facility should it be sold to the state of Alaska as a replacement for the Alaska Psychiatric Institute. A determination was made that a CON is required. If a CON is not received the letter of intent will expire January 21, 2000.

 

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