§ 301.4. Designation; review of proposed capital expenditures.
The Commonwealth has signed an agreement with the Secretary of HHS to designate the Department of Health as the designated planning agency which will submit to the Secretary of HHS, together with the supporting materials as the Secretary of HHS may require, the following information:
(1) With respect to each capital expenditure proposed by or on behalf of a health care facility or health maintenance organization in the Commonwealth, the findings of the designated planning agency as to whether the following has occurred:
(i) The designated planning agency had been given notice of the proposed capital expenditure at least 60 days prior to obligation for the expenditure.
(ii) The expenditure is or is not consistent with the standards, criteria or plans developed under the Public Health Service Act (42 U.C.S.A. § § 201—300cc-15) or the Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963, Pub. L. No. 88-64, 77 Stat. 282, to meet the need for adequate health care facilities in the area covered by the plans so developed.
(iii) In reaching the findings, the designated planning agency shall consult with and take into consideration the findings and recommendations of the appropriate health systems agency.
(iv) When the designated planning agency finds that the expenditure is not consistent with the standards, criteria or plans, it shall submit to the Secretary of HHS the findings and recommendations of all other agencies with which it has consulted.
(2) With respect to each proposed capital expenditure which is found by the designated planning agency to be not consistent with the standards, criteria or plans described in paragraph (1), its recommendation as to whether the Secretary of HHS should either:
(i) Exclude, in determining the Federal payments to be made under Titles V, XVIII and XIX of the act (42 U.S.C.A. § § 701—709, 1395—1395zz and 1396—1396ff) with respect to services furnished in the health care facility or health maintenance organization for which the capital expenditure is made, expenses related to the capital expenditure, in accordance with section 1122(d)(1) of the act (42 U.S.C.A. § 1320a-1).
(ii) Not exclude expenses, on the ground that the facility or organization has demonstrated proof of capability to provide comprehensive health care services efficiently, effectively and economically, and that an exclusion would discourage the operation or expansion of the facility or organization, or of any facility of the organization.
(3) With respect to each proposed capital expenditure which is found by an agency described in paragraph (1)(ii) to be not consistent with the standards, criteria or plans described in paragraph (1) within the field of responsibilities of the other agency, the findings and recommendations of the other agency.
(4) With respect to each proposed capital expenditure as to which the designated planning agency reaches a finding contrary to that reached by the health systems agency a statement of the reasons for a contrary finding.
Cross References This section cited in 28 Pa. Code § 301.7 (relating to fair hearing); 28 Pa. Code § 301.8 (relating to criteria for agency review); 28 Pa. Code § 301.9 (relating to determination by the Secretary of HHS); and 28 Pa. Code § 301.10 (relating to continuing effect of determinations).
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