Eliminates requirement for prior approval of certain hospital repair and maintenance, and non-clinical construction projects.

---

S4992-2011 Actions

• Jun 17, 2011: SUBSTITUTED BY A7665B
• Jun 13, 2011: AMENDED ON THIRD READING 4992A
• Jun 13, 2011: VOTE RECONSIDERED - RESTORED TO THIRD READING
• Jun 13, 2011: returned to senate
• Jun 13, 2011: RECALLED FROM ASSEMBLY
• Jun 6, 2011: referred to codes
• Jun 6, 2011: DELIVERED TO ASSEMBLY
• Jun 6, 2011: PASSED SENATE
• May 16, 2011: ADVANCED TO THIRD READING
• May 11, 2011: 2ND REPORT CAL.
• May 10, 2011: 1ST REPORT CAL.599
• May 2, 2011: REFERRED TO HEALTH

S4992-2011 Meetings

Health: May 10, 2011

S4992-2011 Calendars

Active List: Jun 6, 2011 , Floor Calendar: May 11, 2011 , Floor Calendar: May 16, 2011 , Floor Calendar: May 17, 2011 , Floor Calendar: May 18, 2011 , Floor Calendar: May 23, 2011 , Floor Calendar: May 24, 2011 , Floor Calendar: May 25, 2011 , Floor Calendar: Jun 1, 2011 , Floor Calendar: Jun 2, 2011 , Floor Calendar: Jun 6, 2011

S4992-2011 Votes

S4992-2011 Memo

BILL NUMBER:S4992

TITLE OF BILL:
An act
to amend the public health law, in relation to hospital construction

PURPOSE:
To ensure the state's Certificate of Need (CON) processes are updated
and streamlined to promote access to high quality, cost-effective
health care services

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend subdivision 1-a of section 2802 of
the public health law to specify certain types of projects that would
not require CON approval. These projects include routine repair or
maintenance, including routine purchases and acquisition of minor
equipment; one for one equipment replacements regardless of costs;
and non-clinical infrastructure proposals regardless of cost
including, but not limited to, replacement of HVAC. While these
projects would not require approval, notice of a project would have
to be provided to the Commissioner and, where appropriate, written
certification statements that the project complies with applicable
statutes, codes and regulations and also
would add a new subdivision 1-b of section 2802
to state that pre-opening certifications or surveys would not be
required before approved CON projects can be operationalized.
Instead, the provider would submit an appropriate certification
statement of compliance. In addition, the DOH would assess compliance
during DOH's next survey of the hospital.

Section 2 of the would make the bill effective 180 days after
it becomes law.

EXISTING LAW:
The public health law was amended in 2010 to provide that projects
that are limited to the correction of cited deficiencies do not
require approval, and to provide the Commissioner with clear
authority to eliminate other unspecified categories of projects from
being subject to certificate of need review.

Current law does not address the issue of pre-opening certifications
or surveys; however, it is the practice of the DOH to perform these
certifications and surveys.

JUSTIFICATION:
The CON process can be an effective health planning tool to ensure a
fair and cost-effective distribution of quality health care resources
across New York. Unfortunately, the process is overburdened by
unnecessary process steps that could be eliminated without impacting
patient safety or placing undue stress on the state's finances.

As state staffing levels decrease, it is imperative to focus
reviewers' energies on high-cost, complex projects that could benefit
from a thorough state analysis and public debate. More routine
projects that do not involve new services or the addition of capacity
should not have to undergo the same level of scrutiny.


Lack of timeliness in the current review process hampers providers'
ability to adjust services to respond to market changes, patient
preferences, new technologies, and evolving modes of care. Project
delays often lead to increased project costs (e.g. labor,
construction materials), a portion of which is directly borne by the
state through the Medicaid capital reimbursement structure.

The types of projects that this legislation proposes to be exempt from
CON approval are projects that health facilities generally must
undertake to maintain their physical plants and to ensure the safety
of the patients they serve. This legislation would affect projects
that are almost always approved, but are subject to unnecessary delays.

This legislation would result in modest efficiencies to the current
review process and would allow DOH to focus its efforts and limited
resources on those more consequential projects that appropriately
require more attention. Therefore, this legislation would benefit
DOH, health facilities, and the patients they serve.

LEGISLATIVE HISTORY:
Part of S.7589-A of 2010, a more comprehensive CON bill - reported to
health committee

FISCAL IMPLICATIONS:
State savings due to the need for fewer CON reviews.

EFFECTIVE DATE:
This act shall take effect on the one hundred and eightieth day after
it shall become law.

S4992-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    4992

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 May 2, 2011
                                 ___________

  Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
    printed to be committed to the Committee on Health

  AN ACT  to  amend  the  public  health  law,  in  relation  to  hospital
    construction

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1.  Subdivision 1-a of section 2802 of the public health  law,
  as  added  by section 58 of part A of chapter 58 of the laws of 2010, is
  amended and a new subdivision 1-b is added to read as follows:

    1-a. The following  types  of  construction  projects  by  a  hospital
  possessing  a  valid  operating  certificate  shall  not  require  prior
  approval pursuant to this section:

    (a) correction of cited deficiencies, provided that:

    (i) the construction is limited to the correction of the  deficiencies
  and is authorized by a plan of correction approved by the department;
    (ii)  a  written  notice has been submitted to the department together
  with, where appropriate, a written architect and/or engineering  certif-
  ication  that the project meets the applicable statutes, codes and regu-
  lations specified in the certification statement; and
    (iii) the hospital shall implement a plan to  protect  patient  safety
  during construction; [and]
    (b)  REPAIR  OR  MAINTENANCE,  REGARDLESS  OF  COST, INCLUDING ROUTINE
  PURCHASES AND THE ACQUISITION  OF  MINOR  EQUIPMENT  UNDERTAKEN  IN  THE
  COURSE OF A HOSPITAL'S INVENTORY CONTROL FUNCTIONS;
    (C) NON-CLINICAL INFRASTRUCTURE PROJECTS REGARDLESS OF COST INCLUDING,
  BUT  NOT  LIMITED TO, REPLACEMENT OF HEATING, VENTILATING AND AIR CONDI-
  TIONING SYSTEMS, ROOFS, FIRE ALARM AND CALL BELL SYSTEMS,  PARKING  LOTS
  AND ELEVATORS;
    (D)  ONE  FOR ONE EQUIPMENT REPLACEMENTS REGARDLESS OF COST, INCLUDING
  REPLACEMENT OF EQUIPMENT WITH ANOTHER PIECE OF EQUIPMENT USED FOR  SIMI-
  LAR  PURPOSES BUT EMPLOYING ADVANCED TECHNOLOGY, PROVIDED THAT A WRITTEN

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD11208-01-1

 S. 4992                             2

  NOTICE HAS BEEN SUBMITTED TO THE DEPARTMENT TOGETHER WITH, WHERE  APPRO-
  PRIATE,  A  WRITTEN  CERTIFICATION THAT THE PROJECT MEETS THE APPLICABLE
  STATUTES, CODES AND REGULATIONS SPECIFIED IN  THE  CERTIFICATION  STATE-
  MENT; AND
    (E)  other projects as specified in regulations adopted by the council
  and approved by the commissioner.
    1-B.  THE COMMISSIONER SHALL NOT  REQUIRE  PRE-OPENING  CERTIFICATIONS
  AND/OR  SURVEYS  FOR  CONSTRUCTION  PROJECTS APPROVED IN ACCORDANCE WITH
  THIS SECTION AS LONG AS APPROPRIATE CERTIFICATION STATEMENTS OF  COMPLI-
  ANCE  ARE  SUBMITTED  TO  THE  DEPARTMENT.  THE  DEPARTMENT SHALL ASSESS
  COMPLIANCE DURING THE DEPARTMENT'S NEXT ON-SITE SURVEY OF THE  HOSPITAL.
  IF  AT  THAT  TIME  A PROJECT IS FOUND TO BE NON-COMPLIANT, THE HOSPITAL
  SHALL HAVE A REASONABLE AMOUNT OF TIME TO BRING THE PROJECT INTO COMPLI-
  ANCE AND THE HOSPITAL SHALL NOT BE PENALIZED FOR SUCH NON-COMPLIANCE  IF
  THE HOSPITAL'S CERTIFICATION STATEMENT WAS MADE IN GOOD FAITH.
    S 2. This act shall take effect on the one hundred eightieth day after
  it shall have become a law.