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Certificate of Need Review Activity — 2002

December 31, 2002 — The Wildflower Court certificate of need application to convert 11 assisted living beds to nursing home beds was denied. However, the applicant was approved to convert 2,400 sq. ft. of space previously approved for adult day care, but not implemented, into a maximum of 5 additional nursing home beds. A certificate of need will be issued once the applicant submits an estimate of the cost and time for the completion of construction. The decision was based on findings that there is an ongoing and growing need for assisted living beds in Juneau, and therefore, the elimination of assisted living beds does not meet statewide planning objectives.

November 21, 2002 — Providence Alaska Medical Center has submitted a certificate of need application to add 19 beds to the intensive care unit. Planned phases of the project are to build out the new unit, which will be located in 18,000 square feet of space on the second floor above the Emergency Department, build a walkway to connect the new unit to the existing ICU, move the existing intensive care into the new space, and then remodel the vacated ICU. The existing ICU space consists of two 9– bed units, which will be changed into an 8– bed unit and a 9– bed unit for a loss of one bed to allow space for the connecting walkway. The new unit will actually be a 20– bed unit, but with the loss of one bed in the existing unit there will be a net gain of only 19 beds. The existing ICU would then be used for overflow of higher acuity patients and medical/surgical patients. If approved, there will be a total of 37 ICU beds. Construction is planned to start in January 2003, and the new unit is scheduled to open in October 2003 if approved. The total project cost is estimated to be $11,303,001. The application has been declared complete and the review has begun. Review findings and analysis must be submitted to the Commissioner by February 11, 2003. Information on public comment is in the Scheduled Public comment section below.

August 16, 2002 — The certificate of need for Phase I of the Fairbanks Memorial Hospital Master Plan was approved. The project is authorized to spend up to $12.9 million, with a completion date of December 31, 2004. The application, (received May 23, 2002) includes construction of a 3-story, 41,176 sq. ft. addition to house an expanded Clinical Laboratory, consolidation of the Imaging Department and additional storage.

May 9, 2002 — The Alaska Psychiatric Institute (API) certificate of need application for an 80– bed replacement facility was approved. Conditions of approval are that API may operate 72 beds with the remaining 8 beds to be added after maintaining an average 85% occupancy rate for a two– year period. The applicant is authorized to spend $41,744,000 and the project completion date is December 31, 2005.

May 9, 2002 — The Renal Care Group Alaska Certificate of Need application was approved as requested to relocate the existing kidney dialysis center at Tanana Valley Clinic to a facility to be built at 1867 Airport Way , in Fairbanks. The applicant is authorized to spend up to $1,754,100 for construction of 8,400 square feet of space to house 12 dialysis stations with a completion date of December 31, 2003.

March 26, 2002 — Providence Alaska Medical Center was approved to build an acute inpatient psychiatric facility consisting of 52 psychiatric beds and a shelled– in space for 8 adolescent psychiatric beds. The approved bed complement includes 18 adult DET beds, 10 adult voluntary beds, 16 adolescent beds, and 8 children's beds. Conditions for approval are that Providence may license and operate the 8 additional adolescent beds that are shelled– in after existing adolescent beds maintain an average 85% occupancy rate over a two– year period. The vacated psychiatric unit space in the existing facility is approved for conversion back to a maximum of 27 acute care beds. This certificate authorizes the expenditure of $21,000,000 for construction with an approved completion date of December 31, 2005.

February 7, 2002 — The Valdez Community Hospital certificate of need application to build a 21– bed replacement hospital with 11 acute beds and 10 nursing home beds was approved as requested. The $24.1 million project is scheduled to be complete by December 31, 2008. The application was submitted on July 23, 2001.

February 7, 2002 — The Sitka Community Hospital certificate of need application was approved to convert existing space to add 5 new long– term care beds, expand the dining area, and create an activities space for long– term care. The hospital will have a total of 27 beds including a 12– bed acute care unit and a 15– bed nursing home unit. The approved cost is $30,000 with a completion date of June 30, 2002. The application was submitted on March 12, 2001.

 

February 1, 2002 — Providence Alaska Medical Center submitted an application to modify the approved 1999 North Tower certificate of need. The application was approved as requested. The project includes the addition of 2000 square feet of space for the Laboratory. The applicant is authorized to spend $8,550,000 for construction. Conditions of approval are that the total North Tower project may not exceed $33.55 million and the approved completion date is December 31, 2003.

Progress Reports:

Providence Alaska Medical Center : (Report received 5/28/02 for a CON approved 10/08/99 costing $25 million for expansion of the First Floor of the North Tower . A ) The project is fully obligated and $29,961,450 has been expended on the project. The project is 90% complete with Phases I and II finished and Phase III expected to be complete by October 2002. Variances have occurred relative to the cost and scope of the project including expansion and relocation of the lab. A request to modify the CON was submitted and approved through the CON process, increasing the cost to $33.55 million with a completion date of 12/31/03. No other changes were made in the project.

South Peninsula Hospital : (Report received 5/23/02 for a CON approved 5/20/99 and 11/10/99 costing $9,238,756 to expand LTC, Radiology, ER and to remodel surgery.) The project is not fully obligated although Phase I (the long– term care area) has been completed. SPH is considering major revisions to the project that will likely require a modification to the CON due to changes in time of completion, cost, and scope of the project. A letter of intent for a modification is expected once the cost estimates are firm.

Alaska Regional Hospital : (Report received 5/01/02 for a CON approved 8/08/00 costing $12.3 million to expand and remodel the lobby, radiology, Labor and Delivery and the OR remodeled.) The project is fully obligated. To date $11.3 million has been spent and the anticipated completion date is October 2002. Some unanticipated delays were experienced due to renovating 25– year old spaces. Labor and Delivery, Lobby and Radiology are all complete, 3 OR suites remain to be completed. The project is in conformance with the scope and cost approved by the Department.

Letters of Intent:

December 31, 2002 — Providence Alaska Medical Center has submitted a letter of intent to modify the certificate of need for a PET scanner that was approved in 2001. The project requires a modification of the certificate of need because the changes create a variation in scope, completion date and cost that requires a modification The changes are: 1) the most recent estimate of the cost of the project is $4 million, which is 25% above the approved cost of $3.2 million. Since the increase is more than 15% in excess of inflation above the approved cost, a modification is required; 2) the time schedule of completion has changed and instead of being completed by December 31, 2002, the project will take an additional year to complete; and 3) very little work has been done on this project since its approval, only $30,000 has been spent on design and fees – no construction has begun and the location of the project has changed.

December 16, 2002 — Frontline Behavioral Health, Inc., a Delaware Corporation, has submitted a letter of intent to purchase NorthStar Behavioral Systems facilities for an undisclosed sum. A determination was made that a certificate of need is not required because this is a transfer of ownership and no construction will occur. Frontline Behavioral Health, Inc. is a subsidiary of Universal Health Systems(UHS). UHS is one of the largest health care management companies in the US and operates behavioral health facilities, acute care hospitals, ambulatory surgery and radiation centers nationwide. The change in ownership is scheduled to take place January 2nd.

December 16, 2002 — On November 4, 2002 , the ASC Group (Shawnee Mission, Kansas) and Anchorage Gastroenterology Associates, LLC, submitted a letter of intent to create a 4,933 sq. ft., 2 suite endoscopy center at 4048 Laurel Street in Anchorage that would be licensed as an Ambulatory Surgery Center. The cost of the project is estimated to be $935,019 to remodel. Additional information from a third party audit firm to determine whether the an additional $514,800 worth of leased equipment should be considered. BKD, an accounting firm, submitted documentation that the equipment was considered an operating lease and not a capitol lease for the purposes of the certificate of need program. A determination was made on December 16th, that this project would not require a certificate of need because the project is under the $1 million threshold.

November 18, 2002 — Central Peninsula Hospital submitted a letter of intent to replace 20– year old Radiographic and Fluoroscopic equipment. The cost of the new equipment is $740,903. A determination was made that a certificate of need is not required for this project because the cost is under the $1 million threshold and this should be considered a routine replacement.

October 2, 2002 — South Peninsula Hospital submitted a letter of intent to add 5 new nursing home beds to the facility at a cost of about $25,000 ($5,000 per bed). This will increase the number of nursing home beds from 25 to 30 beds. The project will require a certificate of need because it is a conversion of space to nursing home beds. The applicant may submit a certificate of need at any time between December 7, 2002 and October 8, 2003.

September 10, 2002 — Valley Hospital submitted a letter of intent to create a 315 sq ft room and purchase of a Siemens Multix Digital Flat– panel Detector and for Emergency Department Radiology (X– Ray) studies. The cost includes $460,102 for equipment and $60,000 for construction. A certificate of need is not required for this project since the cost is under the $1 million threshold.

August 8, 2002 — Alaska Regional Hospital has submitted a letter of intent to purchase a Gamma Knife and renovate 3,200 sq. ft. of space to house the equipment. The cost of the project is $5.4 million including $3.5 million for equipment and $1.9 million for construction. A certificate of need is required for this project and an application may be submitted at any time between October 8, 2002 and August 9, 2003. If approved the project is expected to be complete by December 2003.

August 1, 2002 — Valley Hospital submitted a letter of intent to lease a Siemens Somatom Sensation 4 Multi– Slice Computerized Tomography (CT) Scanner to be housed at the West Valley Medical Center. The System is identical to existing equipment in Palmer and the equipment cost is estimated to be $911,546 and construction $80,000 for an estimated total of $991,000. The installation date projected to be September 29, 2002. A certificate of need is not required for this project because it is documented to be an operating lease and the total cost is also under the $1 million threshold.

June 24, 2002 — It was determined that a certificate of need was not required for the expansion of the Susitna Surgery center in Wasilla because the $480,000 total cost that Valley Hospital planned to spend on equipment, construction and new recovery beds was under the $1 million threshold.

June 18, 2002 — Advances in Surgery, building owners at 4001 Laurel Street in Anchorage, have submitted a letter of intent to renew surgery services on site. The Alaska Surgery Center moved surgery services out of the building in 2001, and the owners were prohibited from using the facility as an Ambulatory surgery Center due to a legislative waiver allowing a new facility to be built at 4100 Lake Otis Parkway without a certificate of need if the Laurel Street facility closed. A determination was made that the Laurel Street facility is required to go through the certificate of need process for the project. A certificate of need may be submitted at any time between July 29, 2002 and May 29, 2003.

June 10, 2002 — The Alaska Spine Center submitted a letter of intent for a 770 square foot addition at the HealthSouth complex and the purchase of a GE 9800 Digital Mobile C-arm general surgical platform. The additional space will include a procedure room, expanded storage, and will relocation of an administrative office. The total cost of the project is estimated to be $226,504. A certificate of need was not required for this project because the cost is under the $1 million threshold.

May 31, 2002 — Valley Hospital submitted a letter of intent to Lease a Siemens Somatom Sensation 4 Multi– Slice CT scanner to be installed at the Palmer Facility. The $1.1 million project was determined to be obtained through an operating lease and therefore, a certificate of need was not required.

May 28, 2002 — Valley Hospital submitted a letter of intent to add 3 additional acute care beds at a cost of he addition of a 3-bed step-down unit costing $62,089. A determination was not made regarding whether a certificate of need was required because the project was already complete.

May 1, 2002 — Valley Hospital submitted a letter of intent to move, install and renovate space for the GE Millennium MG Nuclear Camera which is to be moved from the West Valley Medical Center in Wasilla to Valley Hospital in Palmer at a cost of $45,000. The move is to be completed by August 15, 2002. The project will not require a certificate of need because the cost of the project is under the $1 million threshold.

April 25, 2002 — A letter of intent was been received from the Providence Imaging Center for replacement of the existing Toshiba Opart 0.35 Tesla MRI (open imaging). Since the MRI was damaged and needs to be repaired, a certificate of need was not required for the $1.6 million project since it was a routine replacement and the equipment was nearly depreciated out.

April 22, 2002 — Fairbanks Memorial Hospital submitted a letter of intent updating a letter submitted on March 18 by the Greater Fairbanks Community Hospital Foundation. The new letter for the relocation and expansion of the laboratory is for construction of a 3-story addition to the East side of the facility costing $3.9 million with 41,000 sq. ft. A certificate of need application is still required and may be submitted any time between May 18, 2002, and March 18, 2003.

April 19, 2002 — Providence Alaska Medical Center submitted a letter of intent to add 20 critical care beds at a cost of $7 million. Notification was sent that the project will require a certificate of need application, which may be submitted between June 16, 2002 and April 16, 2003.

April 2, 2002 — Wildflower Court, a Nursing Home in Juneau, submitted a letter of intent to convert 11 assisted living beds to nursing home beds. Although the cost of the project is expected to be under $100,000, a certificate of need is required because the project involves conversion of assisted living beds to nursing home beds. A certificate of need application may be submitted at any time between June 1, 2002 and April 2, 2003.

March 18, 2002 — Greater Fairbanks Community Hospital Foundation submitted a letter of intent to build a 2-story addition to the East side of the facility to relocate the Laboratory. Notice was given that the $5.5 million, 22,000 sq. ft. addition will require submission of a certificate of need application, which may be submitted any time between May 18, 2002 and March 18, 2003.

March 12, 2002 — Valley Hospital submitted a letter of intent to build a $50 million, 75-bed acute care hospital in Wasilla to be completed by August 2004. A determination was made that a certificate of need is required because the project is for a health care facility and costs over $1 million. A certificate of need application may be submitted at any time between May 12, 2002 and March 6, 2003.

February 27, 2002 — A letter of intent from Pacific Cataract and Laser Institute (Anchorage) is determined not to require a certificate of need because te cost is under the $1 million threshold. The project proposes to change the configuration of the facility at a cost of $63,817.

January 17, 2002 — Bartlett Regional Hospital submitted a letter of intent to remodel 5,400 sq. ft. of space in the old Medial Arts Building (formerly the State Laboratory) at a cost of $828,000. A major portion of the project is to bring the building up to code and remove asbestos. The project does not require a certificate of need because it is under the $1 million threshold and much of the cost of remodeling is for routine repair and maintenance.

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