§ 131E-181. Nature of certificate of need. - North Carolina Statutes

§ 131E‑181.  Nature of certificate of need.

(a)        A certificate of need shall be valid only for the definedscope, physical location, and person named in the application. A certificate ofneed shall not be transferred or assigned except as provided in G.S. 131E‑189(c).

(b)        A recipient of a certificate of need, or any person who maysubsequently acquire, in any manner whatsoever permitted by law, the servicefor which that certificate of need was issued, is required to materially complywith the representations made in its application for that certificate of need.The Department shall require any recipient of a certificate of need, or itssuccessor, whose service is in operation to submit to the Department evidencethat the recipient, or its successor, is in material compliance with therepresentations made in its application for the certificate of need whichgranted the recipient the right to operate that service. In determining whetherthe recipient of a certificate of need, or its successor, is operating a servicewhich materially differs from the representations made in its application forthat certificate of need, the Department shall consider cost increases to therecipient, or its successor, including, but not limited to, the following:

(1)        Any increase in the consumer price index;

(2)        Any increased cost incurred because of Governmentrequirements, including federal, State, or any political subdivision thereof;and

(3)        Any increase in cost due to professional fees or thepurchase of services and supplies.

(c)        Whenever a certificate of need is issued more than 12 monthsafter the application for the certificate of need began review, the Departmentshall adjust the capital expenditure amount proposed by increasing it toreflect any inflation in the Department of Commerce's Construction Cost Indexthat has occurred since the date when the application began review; and theDepartment shall use this recalculated capital expenditure amount in thecertificate of need issued for the project.

(d)        A project authorized by a certificate of need is completewhen the health service or the health service facility for which thecertificate of need was issued is licensed and certified and is in materialcompliance with the representations made in the certificate of need application. (1977, 2nd Sess., c. 1182,s. 2; 1981, c. 651, s. 5; 1983, c. 775, s. 1; 1985, c. 521, s. 1; 1985 (Reg.Sess., 1986), c. 968, s. 1; 1987, c. 511, s. 1; 1989, c. 233, c. 751, s. 9(c);1991, c. 692, s. 5; 1991 (Reg. Sess., 1992), c. 959, s. 85; 1993, c. 7, s. 5.)