Cabinet Revokes Changes Concerning CON Regulation at KHA Urging
Wednesday, August 27, 2014 9:25 AM
In June,the Cabinet for Health and Family Services proposed significant changes to 900 KAR 6:070 (The Certificate of Need Regulation on Formal Review). The proposed changes included removal of the requirement for an applicant to demonstrate geographic need during the formal review process. There are five separate and distinct criteria identified in statute that an applicant must meet for a Certificate of Need (CON) to be awarded including criteria in the State Health Plan and demonstration of need in the area where the services is being proposed, which are two separate criteria. The Cabinet proposed that an application would meet the geographic need criteria if the application was consistent with the need identified through criteria in the state health plan and the inventory of service utilization published annually. This proposed change, if made final in regulation, would have eliminated the separate geographic need criteria as set forth in statute.
If adopted, the new regulation would have been in direct conflict of the Kentucky Statute and could have resulted in proliferation of unneeded services. KHA and numerous hospitals submitted comments sharing concerns about eliminating the need criteria. Additionally, the Association asked hospital leaders to educate their local legislators on the proposed changes which would have overstepped the Cabinet's regulatory authority by disregarding a statutory requirement. KHA asked Legislators to make calls directly to Cabinet officials to raise concerns about the regulation.
The Cabinet responded to the concerns and revoked its previous recommendations. The Statement of Considerations was published Friday, August 22.