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Certificate of Need Activity — 2000

 

November 1, 2000 — On July 31, 2000,  Bartlett Regional Hospital submitted a certificate of need for a $51.4 million project (including interest). The project plans addition of 12 acute beds; re– configuration of all acute patient rooms to "semi– private," renovation of the OB, Mental Health, CCU and Emergency Departments; and addition of a new Hemodialysis Unit and Women's Diagnostic Health Center. The certificate of need application was declared incomplete and additional information requested.  The additional information was submitted and the application has been declared complete.  The Department has 90 days ( until January 29, 2001 ) to complete the review and send a written analysis and recommendations to the Commissioner. Check the Public meeting schedule below for information on the dates for public comment and the public meeting.

August 8, 2000 — The Alaska Regional Hospital certificate of need for a $13.5 million expansion and remodeling was approved with the condition that the existing surgery suite adjacent to the open– heart surgery room will not be dedicated to open– heart surgery until October 2003.  The project  included addition of 16,042– sq. ft. of new space and renovation of 21,345– sq. ft. of space, construction of a 3– story atrium entry and lobby, addition of pre and post– operative spaces and an additional general surgery suite.  The pre/post operative staging will include holding areas, family waiting areas, reception, consultation rooms, offices and a relocation of endoscopy suites. Three additional inpatient holding beds, 13 additional pre– op/secondary recovery beds, and 7 new phase II recovery beds will be added. Several surgery suites will be resized and expanded resulting in the elimination of one surgery suite. Three existing surgery suites and the two procedure rooms are undersized according to American Institute of Architects standards for hospitals and medical facilities. This project will fix problems of access and under– sized surgery suites. Alaska Regional has 10 existing surgery suites, which will increase to 11 through this project. The approved completion date is winter, 2002.

 

Letters of Intent – 2000

December 26, 2000 — Sitka Community Hospital submitted a letter of intent to convert unused space to 5 nursing home beds. The project is expected to cost $12,500 and is planned to start March 1, 2001 and be completed by April 15, 2001 . A determination was made that a certificate of need is required because according to AS 18.20.020, conversion of space to nursing home beds requires a certificate of need regardless of the cost.  A certificate of need may be submitted at any time between February 26, 2001 and December 28, 2001 .

November 20, 2000 — The Alaska Radiological Pharmacy in Anchorage submitted a  letter of intent to purchase and install a Cyclotron in order to produce tracer medicines in Anchorage . The $1.7 million facility would serve Positron Emission Tomography (PET) scan facilities in the state and construction plans call for the project to be completed by June 2001. The Department determined that a certificate of need is not required for this project because it is not considered a health care facility.

November 20, 2000 — The Alaska Radiological Pharmacy in Anchorage submitted a  letter of intent to purchase and install a Cyclotron in order to produce tracer medicines in Anchorage . The $1.7 million facility would serve Positron Emission Tomography (PET) scan facilities in the state and construction plans call for the project to be completed by June 2001. The Department determined that a certificate of need is not required for this project because it is not considered a health care facility.

November 1, 2000 — A letter of intent was received from Providence Alaska Medical Center for purchase of Positron Emission Tomography (PET) scanner. The estimated cost of the proposed equipment and renovation is $2.8 million dollars. The Department determined that a certificate of need is required for this project because the cost is over the $1 million threshold and the the project adds a new service to a health care facility. After the 60– day waiting period is completed, Providence may submit a certificate of need application at any time between January 1, 2001 and November 1, 2001 .

October 26, 2000 — A letter of intent was received from Dr. Bradley Cruz, MD, for construction of a freestanding Positron Emission Tomography (PET) facility in Anchorage . The estimated cost of the project is $3.9 million for equipment, lab, land and the building. A determination was made that the project will not require a certificate of need because the project is to be run by a group of physicians and is not one of the activities defined as a "health care facility" under AS 18.07.111 (9).

October 10, 2000 — A letter of intent was received from Architects Alaska for renovation and expansion of the ultrasound area at  Providence Alaska Medical Center .  The project involves remodeling the existing space and expanding into the vacated Cardiac Cath Lab #1, expansion of the staff work area, addition of a second ultrasound room and the addition of two toilet rooms. The estimated cost of the project is $200,000 and the proposed construction starting and completion dates are October 15, 2000 and December 1, 2000 respectively. A determination was made that a certificate of need is not required because the project is under the $1 million threshold.  

October 4, 2000 — A determination was made that the letter of intent  submitted by Fairbanks Memorial Hospital for leased MRI equipment did not require a certificate of need because the $1.3 million project was determined to be an operating lease, not a capital lease based on information supplied by the independent auditors Ernst & Young.  

August 15, 2000 — On April 24, 2000 , a letter of intent was submitted for renovation of the Bartlett Regional Hospital Dietary Department. The $2.2 million project would expand the department by 1,968 square feet remove asbestos, and remodel an area that has changed little since it was originally built in 1977. The new dietary area will provide services for the Bartlett Regional Hospital , the new St. Ann 's Care Center , and Juneau Regional Rehabilitation Hospital . A determination was made that a certificate of need was not required because although the total project cost is over the $1 million threshold, a majority (60% or $1,313,084) of the activity is for routine replacement and maintenance of an area that is 23 years old. The portion of the project that is new construction and expansion consists of 40% of the total, and therefore, the cost of new construction is under the $1 million threshold ($909,556) and no certificate of need is required.  

August 7, 2000 — Valdez Community Hospital submitted a letter of intent for a replacement facility located on the current hospital campus. Plans for the proposed $25 million facility include 15 acute beds and 20 nursing beds with construction starting in the spring of 2002 and occupancy in 2004. The department determined that a certificate of need is required because the project is for the construction of a health care facility that costs over $1 million.  An application may be submitted at any time between October 7, 2000 and August 7, 2001.

June 6, 2000 — Valley Hospital submitted a letter of intent  for the lease of a $1.3 million Phillips Intera 1.0 tesla MRI to replace the existing 7 year-old Toshiba MRI.  Based on information provided by Deloitte and Touche, independent auditors, the project is considered an operating lease, not a "capital expenditure," and therefore, the $1 million threshold does not apply and a certificate of need is not required.

June 6, 2000 — Central Peninsula Hospital submitted a letter of intent for the purchase and installation of a of a spiral CT scanner and digital upgrade of one radiographic room.  Although cost of these activities was valued at $1.8 million, the project was determined to be a routine replacement. As a result, the $1 million threshold does not apply and a certificate of need is not required.

May 4, 2000 — HEALTHSOUTH submitted a letter of intent for construction of a new freestanding outpatient surgery facility to replace the existing Alaska Surgery Center   in Anchorage . It was determined that a certificate of need is not required based on a new section of law passed (AS 18.07.031 (c)) which allows a person who is operating an existing ambulatory surgical facility to relocate the services of that facility to a new site in the same community without obtaining a certificate of need as long as the number of categories of health services provided at the new site stays the same and as long as the former site is no longer used for ambulatory surgery.

April 27, 2000 — A determination was made that Central Peninsula Hospital did not need a certificate of need for their portion of the cost of construction of the new Kenai Health clinic even though the cost is estimated to be $1.5 to $2 million. The activity was determined to be for construction of a "clinic," and therefore a certificate of need is  not to required, since no plans currently existed to add services that would be cause the facility to be defined as a "health care facility" 

April 7, 2000 — A determination was made that Providence Extended Care Center did not require a certificate of need for construction a $316,906 "Great Room" to the South Two Care Nursing Unit. The "Great Room" would be used for dining, activities/life enrichment, special occasions, social gatherings, family visiting and a supplemental nursing station. A certificate of need was not required because the project costs under the $1 million threshold and is for new construction and not conversion of a nursing home.

March 31, 2000 — A determination was made that a certificate of need was not required for the replacement of equipment in Cardiac Cath Lab #1 at Providence Alaska Medical Center (PAMC).  The letter of intent submitted by Architects Alaska described the project as relocation of the break room and elimination of the darkroom to add space for Cardiac Catheterization Laboratory #1. On December 8, 1999 , a determination was made that the purchase of new Cardiac Cath equipment for Lab #1 was considered a routine replacement and no certificate of need was required since the old equipment would be disposed of. This remodeling project is expected to cost $541,000.

March 30, 2000 — It was determined that the purchase of equipment and construction of a laser eye surgery center in Anchorage for LASIK Vision (Alaska) Inc. would not require a certificate of need because the project would not be licensed as a "health care facility" because it will not meet the AIA guidelines for an ambulatory surgery center. Although the project will cost an estimated $1.2 million, this type of service does not need certification and licensing. LASIK stands for "laser– assisted in situ keratomileusis, " which is the most commonly performed refractive vision correction procedure. This type of surgery offers the convenience of a reduced need for corrective lenses using a microkeratome instrument and an excimer laser to reshape it the cornea.

March 28, 2000 — ECI/Hyer, Inc. submitted a letter of intent for construction of an addition and remodeling of the Southcentral Foundation Clinic in Anchorage .  The project will cost $19 million.  A determination was made that this project will not require a certificate of need because it is a clinic and does not meet the definition of "health care facility."  The Southcentral Foundation Clinic offers a variety of programs including Pediatrics, Women's Health, Mental Health, and Family Health. 

March 13, 2000 — A determination was made the relocation of the entrance, two exam rooms, triage, and waiting rooms for the Providence Alaska Medical Center Emergency Department in Anchorage will not require a certificate of need. A certificate of need was not required because the project cost $276,871, which was under the $1 million threshold.

February 17, 2000 — Bartlett Regional Hospital submitted a letter of intent for a $40 million remodeling and expansion project in Juneau . A determination was made that this project will require a certificate of need because it costs more than $1 million and it is for construction of a health care facility. If approved the start up date for construction is January 2001 with a completion date of January 2004. A certificate of need application may be submitted at any time between April 3, 2000 and February 2, 2001 .

February 9, 2000 — The Mary Conrad Center ( Anchorage ) submitted a letter of intent to convert one bed from assisted living to long– term care. Although there was no cost involved in this conversion, new certificate of need laws would now require a certificate of need approval. However, a review of documents submitted by the facility and information from Department files showed that this specific bed had been "grandfathered in" since 1991 by an agreement between the Department of Health and Social Services the Mary Conrad Center . As a result, a certificate of need was not required and conversion allowed

Progress Reports – 2000

October 3, 2000 —   St. Ann 's Care Center ( Juneau ) – The CON was issued 8/19/98 .  The approved cost is $18.5 million.  The project is fully obligated and a construction contract was signed with Triplette Construction 3/30/99 .  Expenditures to as of 9/29/2000 : $5.4 million.  The anticipated completion date remains the same: April, 2001. Footings and foundation are completed, framing and exterior finish is 75% complete and the total building is 40% complete. No variations in scope are expected. The final project cost is within the approved limits and there are no changes in services or programs. 

June 14, 2000 —   South Peninsula Hospital (Homer) — The CON was issued 12/10/98 and 11/10/99 .  The approved cost is $9.3 million.  The project is not fully obligated. Phase I is fully obligated and 80% complete with finish work in progress. Phase II is in the final design stage and is planned to go out to bid Spring/Summer of 2001. Phase III is in the concept design stage. Total costs to date: $6.0 million. Construction starting and completion dates are expected to be close to approved CON.  (Phase I — 12/2000; Phase II — 6/2001– 5/2002; Phase III – 5/2001– 6/2002. The scope of the approved project has not changed and the projected final cost will be within the approved limits. 

Appeals — 2000

On December 30, 1999, certificate of need applications to build new ambulatory surgery suites in Fairbanks were denied to Fairbanks Ambulatory Surgery Center, Inc, (FASC) Tanana Valley Clinic (TVC) and Fairbanks Memorial Hospital . FASC and TVC appealed the decisions and their appeals were accepted and consolidated since the two applicants submitted competing proposals. David Leonard of Fairbanks was appointed as the hearing officer. In July, a pre– hearing conference was held and the FASC on July.  At that time, FASC chose to withdraw their appeal.  The TVC appeal is continuing with a hearing scheduled for March, 2001 in Fairbanks .

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