§ 131E-184. Exemptions from review. - North Carolina Statutes

§ 131E‑184.  Exemptionsfrom review.

(a)        Except as providedin subsection (b), the Department shall exempt from certificate of need reviewa new institutional health service if it receives prior written notice from theentity proposing the new institutional health service, which notice includes anexplanation of why the new institutional health service is required, for any ofthe following:

(1)        To eliminate orprevent imminent safety hazards as defined in federal, State, or local fire,building, or life safety codes or regulations.

(1a)      To comply with Statelicensure standards.

(1b)      To comply withaccreditation or certification standards which must be met to receivereimbursement under Title XVIII of the Social Security Act or payments under aState plan for medical assistance approved under Title XIX of that act.

(2)        Repealed by SessionLaws 1987, c. 511, s. 1.

(3)        To provide dataprocessing equipment.

(4)        To provide parking,heating or cooling systems, elevators, or other basic plant or mechanicalimprovements, unless these activities are integral portions of a project thatinvolves the construction of a new health service facility or portion thereofand that is subject to certificate of need review.

(5)        To replace or repairfacilities destroyed or damaged by accident or natural disaster.

(6)        To provide anynonhealth service facility or service.

(7)        To providereplacement equipment.

(8)        To acquire anexisting health service facility, including equipment owned by the healthservice facility at the time of acquisition.

(9)        To develop oracquire a physician office building regardless of cost, unless a newinstitutional health service other than defined in G.S. 131E‑176(16)b. isoffered or developed in the building.

(b)        Those portions of aproposed project which are not proposed for one or more of the purposes undersubsection (a) of this section are subject to certificate of need review, ifthese non‑exempt portions of the project are new institutional healthservices under G.S. 131E‑176(16).

(c)        The Department shallexempt from certificate of need review any conversion of existing acute carebeds to psychiatric beds provided:

(1)        The hospitalproposing the conversion has executed a contract with the Department's Divisionof Mental Health, Developmental Disabilities, and Substance Abuse Servicesand/or one or more of the Area Mental Health, Developmental Disabilities, andSubstance Abuse Authorities to provide psychiatric beds to patients referred bythe contracting agency or agencies; and

(2)        The total number ofbeds to be converted shall not be more than twice the number of beds for whichthe contract pursuant to subdivision (1) of this subsection shall provide.

(d)        In accordance with,and subject to the limitations of G.S. 148‑19.1, the Department shallexempt from certificate of need review the construction and operation of a newchemical dependency or substance abuse facility for the purpose of providinginpatient chemical dependency or substance abuse services solely to inmates ofthe Department of Correction. If an inpatient chemical dependency or substanceabuse facility provides services both to inmates of the Department ofCorrection and to members of the general public, only the portion of thefacility that serves inmates shall be exempt from certificate of need review.

(e)        The Departmentshall exempt from certificate of need review a capital expenditure that exceedsthe two million dollar ($2,000,000) threshold set forth in G.S. 131E‑176(16)b.if all of the following conditions are met:

(1)        The proposed capitalexpenditure would:

a.         Be used solely forthe purpose of renovating, replacing on the same site, or expanding anexisting:

1.         Nursing homefacility,

2.         Adult care homefacility, or

3.         Intermediate carefacility for the mentally retarded; and

b.         Not result in achange in bed capacity, as defined in G.S. 131E‑176(5), or the additionof a health service facility or any other new institutional health serviceother than that allowed in G.S. 131E‑176(16)b.

(2)        The entity proposingto incur the capital expenditure provides prior written notice to theDepartment, which notice includes documentation that demonstrates that theproposed capital expenditure would be used for one or more of the followingpurposes:

a.         Conversion ofsemiprivate resident rooms to private rooms.

b.         Providinginnovative, homelike residential dining spaces, such as cafes, kitchenettes, orprivate dining areas to accommodate residents and their families or visitors.

c.         Renovating,replacing, or expanding residential living or common areas to improve thequality of life of residents.  (1983, c. 775, s. 1; 1987, c. 511, s. 1; 1991 (Reg.Sess., 1992), c. 1030, s. 37; 1993, c. 7, s. 7; 2001‑424, s. 25.19(c);2002‑159, s. 41; 2009‑145, s. 1; 2009‑487, s. 3.)