7 AAC 07.095. Modification of a certificate of need

(a) A certificate of need may not be modified after a proposed activity has been completed or after the completion date on the most current certificate of need has passed.

(b) If the holder of a certificate of need is making continuing progress toward completion of the activity authorized by a certificate of need, the holder may extend the completion date specified in the certificate for up to two years. The holder shall submit a written request to the department that describes the need for an extension and specifies the new completion date. The department will issue a modified certificate of need with the new completion date if the holder is making continuing progress toward completion of the activity. An extension described in this subsection may be made only once. To make an additional change in the completion date, the holder must submit a request for modification under (c) of this section.

(c) Except as provided in (b) of this section for a one-time change in the completion date, the holder of the certificate of need must submit a written request for a modification of the certificate if

(1) the scope of an activity changes or is expected to change; an activity changes in scope if one or more purpose or goal of a proposed activity has been added or eliminated; a redesign of a project and an expansion or addition of a purpose or goal is not considered a change in scope if the main elements of the proposed activity are intact and cost remains the same or is reduced;

(2) an additional change in the completion date beyond that allowed under (b) of this section is needed;

(3) a design change is required that will affect anticipated operating costs by $250,000 or more; or

(4) an increase occurs or is expected to occur in the cost of the proposed activity by more than 15 percent above the approved maximum expenditure.

(d) A request under (c) of this section must be made on a form supplied by the department and must

(1) contain a detailed description of each proposed change to the certificate, including a statement of the reasons why the modification is needed;

(2) state the estimated increase in cost, if any, related to the modification; and

(3) include a current progress report, on a form supplied by the department.

(e) The department will review a request submitted under (d) of this section and will notify the requestor in writing that the change described in the request for modification

(1) does not require a modification to the certificate of need;

(2) is minimal, requiring the department to conduct only a minimal level of review; a change will be considered minimal if it does not change the services to be provided or the purpose of the proposed activity and

(A) reduces the cost of the proposed activity; or

(B) any increase in cost is not more than 15 percent above the approved maximum expenditure; or

(3) warrants a full review that requires submittal of a new certificate of need application.

(f) If the department's review under (e) of this section indicates that the change is minimal, the department will issue a modified certificate of need to address the change.

(g) If the department's review under (e) of this section indicates that the change warrants a full review that requires submittal of a new certificate of need application, the holder shall submit the completed application packet adopted by reference in 7 AAC 07.040, and shall pay an application fee determined under 7 AAC 07.079.

(h) The department will publish, in accordance with 7 AAC 07.032, notice of a decision under (e) of this section.

(i) During the department's review of a new application submitted under (g) of this section, the holder is limited to the scope of work authorized by the original certificate of need until the modified certificate of need is issued.

History: Eff. 8/13/80, Register 75; am 8/14/2005, Register 175

Authority: AS 18.07.031

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