DOH Proposes Amendments to Certificate of Need Regulations

The Department of Health has proposed amendments to its Certificate of Need (CON) regulations to expand the types of construction projects that are subject to a notice process, as opposed to a CON application.  Under the proposed amendments, these projects could be commenced upon a notice to DOH, a certification by a NYS-licensed architect that the project complies with all applicable requirements, and a patient safety plan to protect patients and residents during construction.  Specifically, the following types of projects, regardless of cost, would no longer require an application and DOH approval:

• Correction of cited deficiencies, consistent with a plan of correction;
• Routine repair and maintenance, provided that for projects with a cost of up to $6 million, no notice is required;
• Replacement of equipment with a substantially equivalent substitute; and
• Nonclinical infrastructure projects, including replacement of heating, ventilating and air conditioning, fire alarm and call bell systems, roofs, elevators, parking lots and garages, dietary, and solid waste and/or sewage disposal and upgrades of the exterior building envelope. 

Notably, heating, ventilating, air conditioning, plumbing, electrical, water supply and fire protection projects that involve modification or alteration of clinical space, including resident rooms or space regularly used by residents, would remain subject to a limited review application process.  This review encompasses compliance with structural, architectural, engineering, environmental, safety and sanitary requirements.

Under the existing regulations, a notice process is available only for routine repair and maintenance projects with a cost of up to $6 million, equipment replacements when the equipment has exhausted its useful life and is essential to the operation of the facility, and the elimination of part-time clinic sites.  Currently, non-clinical infrastructure projects with a cost of up to $15 million are subject to a limited review and prior approval, and those with a cost in excess of $15 million are subject to an administrative review.

Contact: Dan Heim, dheim@leadingageny.org, 518-867-8383, ext. 128