Section 22-B4102. CAPITAL EXPENDITURES

 

4102.1Except for a capital expenditure made solely for research, no person shall make or obligate a capital expenditure for a health service or facility before first obtaining a CON if:

 

(a)The capital expenditure is two million five hundred thousand dollars ($2,500,000) or more;

 

(b)The capital expenditure is for major medical equipment valued at one million five hundred thousand dollars ($1,500,000) or more; or

 

(c)The capital expenditure is for a single piece of diagnostic equipment for which the cost or value is two hundred fifty thousand dollars ($250,000) or more.

 

4102.2A person intending to make a capital expenditure solely for the purpose of research shall notify SHPDA of its intent in writing and describe the nature of the capital expenditure to be made for research purposes.

 

4102.3For the purposes of this section, capital expenditure includes the cost of any studies, surveys, designs, plans, working drawings, specifications, or other services (including staff effort) associated with the capital expenditure.

 

4102.4A capital expenditure unrelated to patient care valued at eight million dollars ($8,000,000) or more, by an existing health facility shall require CON review unless the facility or activity is specifically exempted from CON review.

 

4102.5A capital expenditure by a non-health facility component of a larger institution that also includes a hospital or other health facility or service (such as those made by a university or medical school that operates a hospital) shall not be treated as relating to the health service or facility unless either of the following applies:

 

(a)Any part of the capital expenditure is made by or represents an obligation of the health facility or service component; or

 

(b)The expenditure actually or potentially directly affects patient charges or the cost of providing care.

 

4102.6An obligation for a capital expenditure shall be considered to be incurred by or on behalf of a health care facility:

(a)On the date that a health care facility, or another entity on behalf of the HCF, enters into a contract enforceable under law for the construction, acquisition, lease, or financing of a capital asset;

 

(b)On the date that the governing board of the health care facility takes formal action to commit its own funds for a construction project undertaken by the HCF as its own contractor; or

 

(c)On the date on which the gift is completed, when the property is donated.

 

4102.7An obligation for a capital expenditure that is contingent on the issuance of a CON shall be considered not to be incurred until SHPDA issues the CON.

 

4102.8The provisions of Subsection 4102.1 shall not limit any form of preliminary budget approval for inclusion in the budget by the applicant’s administrative review authority.

 

4102.9Budget inclusion shall be a prerequisite for submitting a complete application for a CON.

 

 

authority

§ 22 of the Health Services Planning Program Re-establishment Act of 1996 (Act), effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-421 (2012 Repl.)).

source

Final Rulemaking published at 29 DCR 5569 (December 17, 1982), enacting Proposed Rulemaking published at 29 DCR 4742 (October 29, 1982); as amended by Final Rulemaking published at 61 DCR 1666 (February 28, 2014).