Bill Text: MN SF856 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Perham hospital moratorium exception for psychiatric hospital construction
Sponsorship: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2013-02-28 - Referred to Health, Human Services and Housing [SF856 Detail]
Download: Minnesota-2013-SF856-Introduced.html
1.2relating to health; providing an exception to the hospital construction
1.3moratorium;amending Minnesota Statutes 2012, section 144.551, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
1.6 Subdivision 1. Restricted construction or modification. (a) The following
1.7construction or modification may not be commenced:
1.8(1) any erection, building, alteration, reconstruction, modernization, improvement,
1.9extension, lease, or other acquisition by or on behalf of a hospital that increases the bed
1.10capacity of a hospital, relocates hospital beds from one physical facility, complex, or site
1.11to another, or otherwise results in an increase or redistribution of hospital beds within
1.12the state; and
1.13(2) the establishment of a new hospital.
1.14(b) This section does not apply to:
1.15(1) construction or relocation within a county by a hospital, clinic, or other health
1.16care facility that is a national referral center engaged in substantial programs of patient
1.17care, medical research, and medical education meeting state and national needs that
1.18receives more than 40 percent of its patients from outside the state of Minnesota;
1.19(2) a project for construction or modification for which a health care facility held
1.20an approved certificate of need on May 1, 1984, regardless of the date of expiration of
1.21the certificate;
1.22(3) a project for which a certificate of need was denied before July 1, 1990, if a
1.23timely appeal results in an order reversing the denial;
2.1(4) a project exempted from certificate of need requirements by Laws 1981, chapter
2.2200, section 2;
2.3(5) a project involving consolidation of pediatric specialty hospital services within
2.4the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the
2.5number of pediatric specialty hospital beds among the hospitals being consolidated;
2.6(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
2.7to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
2.8pediatric-orthopedic hospital on an existing site and that will not result in a net increase in
2.9the number of hospital beds. Upon completion of the reconstruction, the licenses of both
2.10hospitals must be reinstated at the capacity that existed on each site before the relocation;
2.11(7) the relocation or redistribution of hospital beds within a hospital building or
2.12identifiable complex of buildings provided the relocation or redistribution does not result
2.13in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds
2.14from one physical site or complex to another; or (iii) redistribution of hospital beds within
2.15the state or a region of the state;
2.16(8) relocation or redistribution of hospital beds within a hospital corporate system
2.17that involves the transfer of beds from a closed facility site or complex to an existing site
2.18or complex provided that: (i) no more than 50 percent of the capacity of the closed facility
2.19is transferred; (ii) the capacity of the site or complex to which the beds are transferred
2.20does not increase by more than 50 percent; (iii) the beds are not transferred outside of a
2.21federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or
2.22redistribution does not involve the construction of a new hospital building;
2.23(9) a construction project involving up to 35 new beds in a psychiatric hospital in
2.24Rice County that primarily serves adolescents and that receives more than 70 percent of its
2.25patients from outside the state of Minnesota;
2.26(10) a project to replace a hospital or hospitals with a combined licensed capacity
2.27of 130 beds or less if: (i) the new hospital site is located within five miles of the current
2.28site; and (ii) the total licensed capacity of the replacement hospital, either at the time of
2.29construction of the initial building or as the result of future expansion, will not exceed 70
2.30licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
2.31(11) the relocation of licensed hospital beds from an existing state facility operated
2.32by the commissioner of human services to a new or existing facility, building, or complex
2.33operated by the commissioner of human services; from one regional treatment center
2.34site to another; or from one building or site to a new or existing building or site on the
2.35same campus;
3.1(12) the construction or relocation of hospital beds operated by a hospital having a
3.2statutory obligation to provide hospital and medical services for the indigent that does not
3.3result in a net increase in the number of hospital beds, notwithstanding section144.552 , 27
3.4beds, of which 12 serve mental health needs, may be transferred from Hennepin County
3.5Medical Center to Regions Hospital under this clause;
3.6(13) a construction project involving the addition of up to 31 new beds in an existing
3.7nonfederal hospital in Beltrami County;
3.8(14) a construction project involving the addition of up to eight new beds in an
3.9existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
3.10(15) a construction project involving the addition of 20 new hospital beds
3.11used for rehabilitation services in an existing hospital in Carver County serving the
3.12southwest suburban metropolitan area. Beds constructed under this clause shall not be
3.13eligible for reimbursement under medical assistance, general assistance medical care,
3.14or MinnesotaCare;
3.15(16) a project for the construction or relocation of up to 20 hospital beds for the
3.16operation of up to two psychiatric facilities or units for children provided that the operation
3.17of the facilities or units have received the approval of the commissioner of human services;
3.18(17) a project involving the addition of 14 new hospital beds to be used for
3.19rehabilitation services in an existing hospital in Itasca County;
3.20(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin
3.21County that closed 20 rehabilitation beds in 2002, provided that the beds are used only
3.22for rehabilitation in the hospital's current rehabilitation building. If the beds are used for
3.23another purpose or moved to another location, the hospital's licensed capacity is reduced
3.24by 20 beds;
3.25(19) a critical access hospital established under section144.1483 , clause (9), and
3.26section 1820 of the federal Social Security Act, United States Code, title 42, section
3.271395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public
3.28Law 105-33, to the extent that the critical access hospital does not seek to exceed the
3.29maximum number of beds permitted such hospital under federal law;
3.30(20) notwithstanding section144.552 , a project for the construction of a new hospital
3.31in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
3.32(i) the project, including each hospital or health system that will own or control the
3.33entity that will hold the new hospital license, is approved by a resolution of the Maple
3.34Grove City Council as of March 1, 2006;
3.35(ii) the entity that will hold the new hospital license will be owned or controlled by
3.36one or more not-for-profit hospitals or health systems that have previously submitted a
4.1plan or plans for a project in Maple Grove as required under section144.552 , and the
4.2plan or plans have been found to be in the public interest by the commissioner of health
4.3as of April 1, 2005;
4.4(iii) the new hospital's initial inpatient services must include, but are not limited
4.5to, medical and surgical services, obstetrical and gynecological services, intensive
4.6care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics,
4.7behavioral health services, and emergency room services;
4.8(iv) the new hospital:
4.9(A) will have the ability to provide and staff sufficient new beds to meet the growing
4.10needs of the Maple Grove service area and the surrounding communities currently being
4.11served by the hospital or health system that will own or control the entity that will hold
4.12the new hospital license;
4.13(B) will provide uncompensated care;
4.14(C) will provide mental health services, including inpatient beds;
4.15(D) will be a site for workforce development for a broad spectrum of
4.16health-care-related occupations and have a commitment to providing clinical training
4.17programs for physicians and other health care providers;
4.18(E) will demonstrate a commitment to quality care and patient safety;
4.19(F) will have an electronic medical records system, including physician order entry;
4.20(G) will provide a broad range of senior services;
4.21(H) will provide emergency medical services that will coordinate care with regional
4.22providers of trauma services and licensed emergency ambulance services in order to
4.23enhance the continuity of care for emergency medical patients; and
4.24(I) will be completed by December 31, 2009, unless delayed by circumstances
4.25beyond the control of the entity holding the new hospital license; and
4.26(v) as of 30 days following submission of a written plan, the commissioner of health
4.27has not determined that the hospitals or health systems that will own or control the entity
4.28that will hold the new hospital license are unable to meet the criteria of this clause;
4.29(21) a project approved under section144.553 ;
4.30(22) a project for the construction of a hospital with up to 25 beds in Cass County
4.31within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's
4.32license holder is approved by the Cass County Board;
4.33(23) a project for an acute care hospital in Fergus Falls that will increase the bed
4.34capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16
4.35and closing a separately licensed 13-bed skilled nursing facility;or
5.1(24) notwithstanding section144.552 , a project for the construction and expansion
5.2of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for
5.3patients who are under 21 years of age on the date of admission. The commissioner
5.4conducted a public interest review of the mental health needs of Minnesota and the Twin
5.5Cities metropolitan area in 2008. No further public interest review shall be conducted for
5.6the construction or expansion project under this clause; or
5.7(25) a project for the construction of a psychiatric hospital in the Perham Hospital
5.8District with up to 12 beds, intended primarily for patients who are 55 years of age and
5.9older on the date of admission.
1.3moratorium;amending Minnesota Statutes 2012, section 144.551, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
1.6 Subdivision 1. Restricted construction or modification. (a) The following
1.7construction or modification may not be commenced:
1.8(1) any erection, building, alteration, reconstruction, modernization, improvement,
1.9extension, lease, or other acquisition by or on behalf of a hospital that increases the bed
1.10capacity of a hospital, relocates hospital beds from one physical facility, complex, or site
1.11to another, or otherwise results in an increase or redistribution of hospital beds within
1.12the state; and
1.13(2) the establishment of a new hospital.
1.14(b) This section does not apply to:
1.15(1) construction or relocation within a county by a hospital, clinic, or other health
1.16care facility that is a national referral center engaged in substantial programs of patient
1.17care, medical research, and medical education meeting state and national needs that
1.18receives more than 40 percent of its patients from outside the state of Minnesota;
1.19(2) a project for construction or modification for which a health care facility held
1.20an approved certificate of need on May 1, 1984, regardless of the date of expiration of
1.21the certificate;
1.22(3) a project for which a certificate of need was denied before July 1, 1990, if a
1.23timely appeal results in an order reversing the denial;
2.1(4) a project exempted from certificate of need requirements by Laws 1981, chapter
2.2200, section 2;
2.3(5) a project involving consolidation of pediatric specialty hospital services within
2.4the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the
2.5number of pediatric specialty hospital beds among the hospitals being consolidated;
2.6(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
2.7to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
2.8pediatric-orthopedic hospital on an existing site and that will not result in a net increase in
2.9the number of hospital beds. Upon completion of the reconstruction, the licenses of both
2.10hospitals must be reinstated at the capacity that existed on each site before the relocation;
2.11(7) the relocation or redistribution of hospital beds within a hospital building or
2.12identifiable complex of buildings provided the relocation or redistribution does not result
2.13in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds
2.14from one physical site or complex to another; or (iii) redistribution of hospital beds within
2.15the state or a region of the state;
2.16(8) relocation or redistribution of hospital beds within a hospital corporate system
2.17that involves the transfer of beds from a closed facility site or complex to an existing site
2.18or complex provided that: (i) no more than 50 percent of the capacity of the closed facility
2.19is transferred; (ii) the capacity of the site or complex to which the beds are transferred
2.20does not increase by more than 50 percent; (iii) the beds are not transferred outside of a
2.21federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or
2.22redistribution does not involve the construction of a new hospital building;
2.23(9) a construction project involving up to 35 new beds in a psychiatric hospital in
2.24Rice County that primarily serves adolescents and that receives more than 70 percent of its
2.25patients from outside the state of Minnesota;
2.26(10) a project to replace a hospital or hospitals with a combined licensed capacity
2.27of 130 beds or less if: (i) the new hospital site is located within five miles of the current
2.28site; and (ii) the total licensed capacity of the replacement hospital, either at the time of
2.29construction of the initial building or as the result of future expansion, will not exceed 70
2.30licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
2.31(11) the relocation of licensed hospital beds from an existing state facility operated
2.32by the commissioner of human services to a new or existing facility, building, or complex
2.33operated by the commissioner of human services; from one regional treatment center
2.34site to another; or from one building or site to a new or existing building or site on the
2.35same campus;
3.1(12) the construction or relocation of hospital beds operated by a hospital having a
3.2statutory obligation to provide hospital and medical services for the indigent that does not
3.3result in a net increase in the number of hospital beds, notwithstanding section
3.4beds, of which 12 serve mental health needs, may be transferred from Hennepin County
3.5Medical Center to Regions Hospital under this clause;
3.6(13) a construction project involving the addition of up to 31 new beds in an existing
3.7nonfederal hospital in Beltrami County;
3.8(14) a construction project involving the addition of up to eight new beds in an
3.9existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
3.10(15) a construction project involving the addition of 20 new hospital beds
3.11used for rehabilitation services in an existing hospital in Carver County serving the
3.12southwest suburban metropolitan area. Beds constructed under this clause shall not be
3.13eligible for reimbursement under medical assistance, general assistance medical care,
3.14or MinnesotaCare;
3.15(16) a project for the construction or relocation of up to 20 hospital beds for the
3.16operation of up to two psychiatric facilities or units for children provided that the operation
3.17of the facilities or units have received the approval of the commissioner of human services;
3.18(17) a project involving the addition of 14 new hospital beds to be used for
3.19rehabilitation services in an existing hospital in Itasca County;
3.20(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin
3.21County that closed 20 rehabilitation beds in 2002, provided that the beds are used only
3.22for rehabilitation in the hospital's current rehabilitation building. If the beds are used for
3.23another purpose or moved to another location, the hospital's licensed capacity is reduced
3.24by 20 beds;
3.25(19) a critical access hospital established under section
3.26section 1820 of the federal Social Security Act, United States Code, title 42, section
3.271395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public
3.28Law 105-33, to the extent that the critical access hospital does not seek to exceed the
3.29maximum number of beds permitted such hospital under federal law;
3.30(20) notwithstanding section
3.31in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
3.32(i) the project, including each hospital or health system that will own or control the
3.33entity that will hold the new hospital license, is approved by a resolution of the Maple
3.34Grove City Council as of March 1, 2006;
3.35(ii) the entity that will hold the new hospital license will be owned or controlled by
3.36one or more not-for-profit hospitals or health systems that have previously submitted a
4.1plan or plans for a project in Maple Grove as required under section
4.2plan or plans have been found to be in the public interest by the commissioner of health
4.3as of April 1, 2005;
4.4(iii) the new hospital's initial inpatient services must include, but are not limited
4.5to, medical and surgical services, obstetrical and gynecological services, intensive
4.6care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics,
4.7behavioral health services, and emergency room services;
4.8(iv) the new hospital:
4.9(A) will have the ability to provide and staff sufficient new beds to meet the growing
4.10needs of the Maple Grove service area and the surrounding communities currently being
4.11served by the hospital or health system that will own or control the entity that will hold
4.12the new hospital license;
4.13(B) will provide uncompensated care;
4.14(C) will provide mental health services, including inpatient beds;
4.15(D) will be a site for workforce development for a broad spectrum of
4.16health-care-related occupations and have a commitment to providing clinical training
4.17programs for physicians and other health care providers;
4.18(E) will demonstrate a commitment to quality care and patient safety;
4.19(F) will have an electronic medical records system, including physician order entry;
4.20(G) will provide a broad range of senior services;
4.21(H) will provide emergency medical services that will coordinate care with regional
4.22providers of trauma services and licensed emergency ambulance services in order to
4.23enhance the continuity of care for emergency medical patients; and
4.24(I) will be completed by December 31, 2009, unless delayed by circumstances
4.25beyond the control of the entity holding the new hospital license; and
4.26(v) as of 30 days following submission of a written plan, the commissioner of health
4.27has not determined that the hospitals or health systems that will own or control the entity
4.28that will hold the new hospital license are unable to meet the criteria of this clause;
4.29(21) a project approved under section
4.30(22) a project for the construction of a hospital with up to 25 beds in Cass County
4.31within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's
4.32license holder is approved by the Cass County Board;
4.33(23) a project for an acute care hospital in Fergus Falls that will increase the bed
4.34capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16
4.35and closing a separately licensed 13-bed skilled nursing facility;
5.1(24) notwithstanding section
5.2of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for
5.3patients who are under 21 years of age on the date of admission. The commissioner
5.4conducted a public interest review of the mental health needs of Minnesota and the Twin
5.5Cities metropolitan area in 2008. No further public interest review shall be conducted for
5.6the construction or expansion project under this clause; or
5.7(25) a project for the construction of a psychiatric hospital in the Perham Hospital
5.8District with up to 12 beds, intended primarily for patients who are 55 years of age and
5.9older on the date of admission.
