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Certificate of Need Review Activity — 2004

 

July 29, 2004 – The Department is currently reviewing a certificate of need application from Providence Alaska Medical Center that was declared complete on May 6, 2004 . The project is for the purchase and installation of a 0.7 Tesla open-architecture Magnetic Resonance Imaging Unit to be located in the Radiology Department. The estimated total cost of the project is $3.2 million and it is projected that the MRI would become operational in October 2004 if approved. Due to a late request for a public meeting, the Department has requested an extension of the review until September 3 to complete the review document and to hold the public meeting. The public meeting will be held from 7 PM to 9 PM on August 11, 2004 at the Loussac Library 1st Floor Public Conference Room, 3600 Denali Street , Anchorage.

July 29, 2004 – The Department of Health and Social Services has completed the review of the Ketchikan General Hospital certificate of need application to remodel the Long-Term Care Unit. In accordance with the provisions of AS 18.07.031-111 and 7 AAC 07.010-130, it has been determined that Ketchikan General Hospital has met the applicable criteria for approval of their certificate of need application to remodel the Long-Term Care Unit. Conditions of approval are that Ketchikan General Hospital is authorized to spend up to $4,012,631 to remodel the Unit, the total number of licensed nursing home beds in the Unit shall not exceed 29 beds, and the project completion date is December 31, 2005.

July 14, 2004 – The Central Peninsula General Hospital certificate of need application for expansion and renovation was approved. The total bed array is 50 acute care beds consisting of 38 Medical/Surgical beds (8 Medical/Surgical beds will be swing beds); 6 ICU beds; and 6 OB beds. Also, 4 surgery suites and 1 procedure room are approved. Conditions of approval are: 1) the total cost of the project is $49,611,816 (a reduction of $288,184 for the contingency fee, which does not need to be considered in the total project since total costs are allowed to exceed the approved amount by 15% plus inflation); 2) The project completion date is December 31, 2010; and 3) the build-out to complete shelled-in space must go through the certificate of need approval process before construction if the cost is estimated to be $1 million or more.

April 20, 2004 – A certificate of need application from Fairbanks Memorial Hospital/Denali Center (FMH/DC) for Phase II of the master plan –Radiology Expansion - has met the applicable criteria for approval to the satisfaction of the State of Alaska Department of Health and Social Services. FMH/DC is approved to build a 46,574 sq. ft, 2-story, Outpatient Radiology Center with a basement; remodel 12,000 sq. ft. of hospital space; and purchase two MRIs, two gamma cameras, one CT scanner and other equipment requested. Conditions of approval are: the total number of acute care and long-term care beds will not increase and a PET/CT scanner is not approved. The applicant is approved to spend $36,069,090, which is cost reduction of $1,043,024 because the PET/CT scanner was eliminated from the equipment list. The approved completion date for the project is December 31, 2006.

Letters of Intent:

July 28, 2004 – A determination was made that remodeling of the Kodiak Community Health Center located in Providence Kodiak Medical Center will not require a certificate of need even though the cost is $2.5 million because the facility is not considered a “health care facility” as defined under certificate of need regulations.

July 21, 2004 – Providence Alaska Medical Center submitted a letter of intent to create a dialysis suite where up to 6 renal patients can be dialyzed at one time. The cost of remodeling the 500 sq. ft. to house the dialysis suite is estimated to be $195,000, which includes $35,000 for equipment. The projected construction timeline plans to complete the project by December 2004. A determination was made that a certificate of need is not required for this project because The estimated cost of construction and equipment for the project is under the $1 million threshold that triggers the requirement for a certificate of need.

July 8, 2004 – Cornell Companies, Inc. submitted a letter of intent to establish a staff secure, 60-bed Residential Psychiatric Treatment Facility in Anchorage . A determination was made that the project will require a certificate of need because: 1) The project defined as a “health care facility” under AS 18.07.111(8), and 2) the project cost is more than $1 million. A certificate of need application may be submitted at any time between September 6, 2004 and July 7, 2005.

June 23, 2004 – A determination was made that the purchase and installation of the DST16 PET/CT scanner, and Lightspeed Pro 16 CT scanner do not fall under the new law because they were purchased before the new legislation was signed. However, the Hologic Mammography System falls under the new certificate of need law because it was purchased after the law was signed. However, a certificate of need is not required because the Mammography System only costs $86,550, which is well below the $1 million threshold that triggers the CON.

June 17, 2004 – A determination was made that the NorthStar Hospital letter of intent for construction of a 60-bed Residential Psychiatric Treatment Center (RPTC) in Anchorage will require submission of a certificate of need application because: 1) According to AS 18.07.111(8) – an RPTC is considered a “health care facility” for the purpose of certificate of need review and 2) the cost of the project is estimated to be over $1 million. NorthStar may submit a certificate of need application at any time between August 16, 2004 and June 17, 2005.

June 16, 2004 – A determination was made that the NorthStar Hospital letter of intent for construction of a 60-bed Residential Psychiatric Treatment Center (RPTC) in Kenai will require submission of a certificate of need application because: 1) According to AS 18.07.111(8) – an RPTC is considered a “health care facility” for the purpose of certificate of need review and 2) the cost of the project is estimated to be over $1 million. NorthStar may submit a certificate of need application at any time between August 15, 2004 and June 16, 2005.

June 15, 2004 – It was determined that the proposed project to develop a 2-suite ambulatory surgery center in Kenai will require a certificate of need because the cost of the project is over $1 million (estimated cost is $1-$2 million). The letter of intent was submitted by James V. Zirul, D.O. of the Peninsula Ear, Nose, and Throat Clinic. The applicant may submit a certificate of need application at any time between August 15, 2004 and June 14, 2005.

June 15, 2004 – A determination was made that the Tanana Realty Partners ambulatory surgery center project to develop a 2-suite ambulatory surgery center in Fairbanks requires submission of a certificate of need application. A CON application is required for the following reasons: 1) According to AS 18.07.111(8), an ambulatory surgery center is a type of service that requires a certificate of need review if the project costs $1 million or more; 2) In the April 19, 2004 follow-up revisions to the letter of intent submitted by Cordella, the cost of design and construction was estimated to be $982,000; 3) According to AS 18.07.031(e), the “net present value” of a lease for space occupied by or the equipment required for a health care facility is counted in determining the cost of a project. The net present value of this project is $345,795.51; and 4) The total cost of the project for certificate of need purposes is therefore $1,327,796, which is over the threshold that triggers the CON process requirement.

May 20, 2004 – The Bartlett Regional Hospital (BRH), Juneau , submitted a letter of intent to renovate space for 8 adolescent psychiatric beds. The proposed project will require a certificate of need because the project is for a health care facility and the cost is over the $1 million threshold. BRH may submit a certificate of need application at any time between June 10, 2004 and May 21, 2005.

May 19, 2004 – Fairbanks Memorial Hospital/Denali Center (FMH/DC) submitted a letter of intent to renovate their Emergency Department. The proposed project will require a certificate of need because the project is for a health care facility and the cost is over the $1 million threshold. FMH/DC may submit a certificate of need application at any time between June 10, 2004 and May 21, 2005.

May 12, 2004 – A letter of intent was received from South Peninsula Hospital to lease a 1.5 Tesla MRI. Based on an Office of Rate Review analysis, a determination was made that the lese is an operating lease and the project will not require a certificate of need application.

May 5, 2004 – A determination was made that the Alaska Heart Institute is not required to go through the certificate of need process to license their existing cardiac catheterization laboratory as an ambulatory surgery suite because the cost is under the $1 million threshold. The project is located in the Providence medical office building.

April 1, 2004 – A determination was made that the Alaska Spine Institute Surgery. Center did not require submission of a certificate of need application to develop an ambulatory surgery center in leased space at the Alaska Pacific University Medical Office Building . The lease is considered an operating lease and therefore the cost is under the $1 million threshold.

March 17, 2004 – NorthStar Hospital submitted a letter of intent to convert the existing 34-bed Residential Psychiatric Treatment Center (RPTC) at 1650 Bragaw Street to an acute psychiatric care facility. Additional information was requested in order to make a determination as to whether a certificate of need would be required for this project.

February 10, 2004 – A letter of intent submitted on behalf of South Anchorage Medical, LLC for development of an Ambulatory Surgery Center in Anchorage . A determination was made that this project will require a certificate of need, because the project costs over $1 million and is for a health care facility. In this case the project did not meet the FASB guidelines for the equipment to be considered an operating lease. A certificate of need may be submitted for this project at any time between April 11, 2004 , and February 10, 2005.

February 10, 2004 – A determination was made that replacement of the existing Central Peninsula General Hospital MRI with a new Siemens 1.5 Tesla Symphony MRI at an estimated cost of $1.2 million will not require a certificate of need because: 1) The existing equipment will not be replaced until October 2004. By that time the existing equipment will be fully depreciated; 2) The current MRI is a 1.0 Tesla Picker Polaris model. The Picker company was purchased by the Phillips company and full maintenance support for this model will no longer be available; 3) It is difficult to find parts for the Picker. It has minor operational function problems that raise concerns about how long the MRI can operate without a major breakdown; and 4) By the time the new equipment is installed in October, the old equipment will be have been in use beyond the AHA estimated useful life this equipment of 5 years.

Appeals: None

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