Certificate of Need Law; bring forward provisions of.

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To: Public Health and
Welfare
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Bryan

SENATE BILL NO. 2473

AN ACT TO BRING FORWARD SECTIONS 41-7-171 THROUGH 41-7-209, 1
MISSISSIPPI CODE OF 1972, WHICH CONSTITUTE THE CERTIFICATE OF NEED 2
LAW, FOR PURPOSES OF POSSIBLE AMENDMENT; TO AMEND SECTION 3
41-7-185, MISSISSIPPI CODE OF 1972, TO MAKE TECHNICAL, 4
NONSUBSTANTIVE AMENDMENTS; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 41-7-171, Mississippi Code of 1972, is 7
brought forward as follows: 8
41-7-171. Sections 41-7-171 through 41-7-209 shall be known 9
and may be cited as the "Mississippi Health Care Certificate of 10
Need Law of 1979." 11
SECTION 2. Section 41-7-173, Mississippi Code of 1972, is 12
brought forward as follows: 13
41-7-173. For the purposes of Section 41-7-171 et seq., the 14
following words shall have the meanings ascribed herein, unless 15
the context otherwise requires: 16
(a) "Affected person" means (i) the applicant; (ii) a 17
person residing within the geographic area to be served by the 18
applicant's proposal; (iii) a person who regularly uses health 19
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care facilities or HMOs located in the geographic area of the 20
proposal which provide similar service to that which is proposed; 21
(iv) health care facilities and HMOs which have, prior to receipt 22
of the application under review, formally indicated an intention 23
to provide service similar to that of the proposal being 24
considered at a future date; (v) third-party payers who reimburse 25
health care facilities located in the geographical area of the 26
proposal; or (vi) any agency that establishes rates for health 27
care services or HMOs located in the geographic area of the 28
proposal. 29
(b) "Certificate of need" means a written order of the 30
State Department of Health setting forth the affirmative finding 31
that a proposal in prescribed application form, sufficiently 32
satisfies the plans, standards and criteria prescribed for such 33
service or other project by Section 41-7-171 et seq., and by rules 34
and regulations promulgated thereunder by the State Department of 35
Health. 36
(c) (i) "Capital expenditure," when pertaining to 37
defined major medical equipment, shall mean an expenditure which, 38
under generally accepted accounting principles consistently 39
applied, is not properly chargeable as an expense of operation and 40
maintenance and which exceeds One Million Five Hundred Thousand 41
Dollars ($1,500,000.00). 42
(ii) "Capital expenditure," when pertaining to 43
other than major medical equipment, shall mean any expenditure 44
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which under generally accepted accounting principles consistently 45
applied is not properly chargeable as an expense of operation and 46
maintenance and which exceeds, for clinical health services, as 47
defined in paragraph (k) below, Five Million Dollars 48
($5,000,000.00), adjusted for inflation as published by the State 49
Department of Health or which exceeds, for nonclinical health 50
services, as defined in paragraph (k) below, Ten Million Dollars 51
($10,000,000.00), adjusted for inflation as published by the State 52
Department of Health. 53
(iii) A "capital expenditure" shall include the 54
acquisition, whether by lease, sufferance, gift, devise, legacy, 55
settlement of a trust or other means, of any facility or part 56
thereof, or equipment for a facility, the expenditure for which 57
would have been considered a capital expenditure if acquired by 58
purchase. Transactions which are separated in time but are 59
planned to be undertaken within twelve (12) months of each other 60
and are components of an overall plan for meeting patient care 61
objectives shall, for purposes of this definition, be viewed in 62
their entirety without regard to their timing. 63
(iv) In those instances where a health care 64
facility or other provider of health services proposes to provide 65
a service in which the capital expenditure for major medical 66
equipment or other than major medical equipment or a combination 67
of the two (2) may have been split between separate parties, the 68
total capital expenditure required to provide the proposed service 69
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shall be considered in determining the necessity of certificate of 70
need review and in determining the appropriate certificate of need 71
review fee to be paid. The capital expenditure associated with 72
facilities and equipment to provide services in Mississippi shall 73
be considered regardless of where the capital expenditure was 74
made, in state or out of state, and regardless of the domicile of 75
the party making the capital expenditure, in state or out of 76
state. 77
(d) "Change of ownership" includes, but is not limited 78
to, inter vivos gifts, purchases, transfers, lease arrangements, 79
cash and/or stock transactions or other comparable arrangements 80
whenever any person or entity acquires or controls a majority 81
interest of an existing health care facility, and/or the change of 82
ownership of major medical equipment, a health service, or an 83
institutional health service. Changes of ownership from 84
partnerships, single proprietorships or corporations to another 85
form of ownership are specifically included. However, "change of 86
ownership" shall not include any inherited interest acquired as a 87
result of a testamentary instrument or under the laws of descent 88
and distribution of the State of Mississippi. 89
(e) "Commencement of construction" means that all of 90
the following have been completed with respect to a proposal or 91
project proposing construction, renovating, remodeling or 92
alteration: 93
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(i) A legally binding written contract has been 94
consummated by the proponent and a lawfully licensed contractor to 95
construct and/or complete the intent of the proposal within a 96
specified period of time in accordance with final architectural 97
plans which have been approved by the licensing authority of the 98
State Department of Health; 99
(ii) Any and all permits and/or approvals deemed 100
lawfully necessary by all authorities with responsibility for such 101
have been secured; and 102
(iii) Actual bona fide undertaking of the subject 103
proposal has commenced, and a progress payment of at least one 104
percent (1%) of the total cost price of the contract has been paid 105
to the contractor by the proponent, and the requirements of this 106
paragraph (e) have been certified to in writing by the State 107
Department of Health. 108
Force account expenditures, such as deposits, securities, 109
bonds, et cetera, may, in the discretion of the State Department 110
of Health, be excluded from any or all of the provisions of 111
defined commencement of construction. 112
(f) "Consumer" means an individual who is not a 113
provider of health care as defined in paragraph (q) of this 114
section. 115
(g) "Develop," when used in connection with health 116
services, means to undertake those activities which, on their 117
completion, will result in the offering of a new institutional 118
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health service or the incurring of a financial obligation as 119
defined under applicable state law in relation to the offering of 120
such services. 121
(h) "Health care facility" includes hospitals, 122
psychiatric hospitals, chemical dependency hospitals, skilled 123
nursing facilities, end-stage renal disease (ESRD) facilities, 124
including freestanding hemodialysis units, intermediate care 125
facilities, ambulatory surgical facilities, intermediate care 126
facilities for individuals with intellectual disabilities, home 127
health agencies, psychiatric residential treatment facilities, 128
pediatric skilled nursing facilities, long-term care hospitals, 129
comprehensive medical rehabilitation facilities, including 130
facilities owned or operated by the state or a political 131
subdivision or instrumentality of the state, but does not include 132
Christian Science sanatoriums operated or listed and certified by 133
the First Church of Christ, Scientist, Boston, Massachusetts. 134
This definition shall not apply to facilities for the private 135
practice, either independently or by incorporated medical groups, 136
of physicians, dentists or health care professionals except where 137
such facilities are an integral part of an institutional health 138
service. The various health care facilities listed in this 139
paragraph shall be defined as follows: 140
(i) "Hospital" means an institution which is 141
primarily engaged in providing to inpatients, by or under the 142
supervision of physicians, diagnostic services and therapeutic 143
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services for medical diagnosis, treatment and care of injured, 144
disabled or sick persons, or rehabilitation services for the 145
rehabilitation of injured, disabled or sick persons. Such term 146
does not include psychiatric hospitals. 147
(ii) "Psychiatric hospital" means an institution 148
which is primarily engaged in providing to inpatients, by or under 149
the supervision of a physician, psychiatric services for the 150
diagnosis and treatment of persons with mental illness. 151
(iii) "Chemical dependency hospital" means an 152
institution which is primarily engaged in providing to inpatients, 153
by or under the supervision of a physician, medical and related 154
services for the diagnosis and treatment of chemical dependency 155
such as alcohol and drug abuse. 156
(iv) "Skilled nursing facility" means an 157
institution or a distinct part of an institution which is 158
primarily engaged in providing to inpatients skilled nursing care 159
and related services for patients who require medical or nursing 160
care or rehabilitation services for the rehabilitation of injured, 161
disabled or sick persons. 162
(v) "End-stage renal disease (ESRD) facilities" 163
means kidney disease treatment centers, which includes 164
freestanding hemodialysis units and limited care facilities. The 165
term "limited care facility" generally refers to an 166
off-hospital-premises facility, regardless of whether it is 167
provider or nonprovider operated, which is engaged primarily in 168
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furnishing maintenance hemodialysis services to stabilized 169
patients. 170
(vi) "Intermediate care facility" means an 171
institution which provides, on a regular basis, health-related 172
care and services to individuals who do not require the degree of 173
care and treatment which a hospital or skilled nursing facility is 174
designed to provide, but who, because of their mental or physical 175
condition, require health-related care and services (above the 176
level of room and board). 177
(vii) "Ambulatory surgical facility" means a 178
facility primarily organized or established for the purpose of 179
performing surgery for outpatients and is a separate identifiable 180
legal entity from any other health care facility. Such term does 181
not include the offices of private physicians or dentists, whether 182
for individual or group practice, and does not include any 183
abortion facility as defined in Section 41-75-1(f). 184
(viii) "Intermediate care facility for individuals 185
with intellectual disabilities" means an intermediate care 186
facility that provides health or rehabilitative services in a 187
planned program of activities to persons with an intellectual 188
disability, also including, but not limited to, cerebral palsy and 189
other conditions covered by the Federal Developmentally Disabled 190
Assistance and Bill of Rights Act, Public Law 94-103. 191
(ix) "Home health agency" means a public or 192
privately owned agency or organization, or a subdivision of such 193
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an agency or organization, properly authorized to conduct business 194
in Mississippi, which is primarily engaged in providing to 195
individuals at the written direction of a licensed physician, in 196
the individual's place of residence, skilled nursing services 197
provided by or under the supervision of a registered nurse 198
licensed to practice in Mississippi, and one or more of the 199
following services or items: 200
1. Physical, occupational or speech therapy; 201
2. Medical social services; 202
3. Part-time or intermittent services of a 203
home health aide; 204
4. Other services as approved by the 205
licensing agency for home health agencies; 206
5. Medical supplies, other than drugs and 207
biologicals, and the use of medical appliances; or 208
6. Medical services provided by an intern or 209
resident-in-training at a hospital under a teaching program of 210
such hospital. 211
Further, all skilled nursing services and those services 212
listed in items 1 through 4 of this subparagraph (ix) must be 213
provided directly by the licensed home health agency. For 214
purposes of this subparagraph, "directly" means either through an 215
agency employee or by an arrangement with another individual not 216
defined as a health care facility. 217
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This subparagraph (ix) shall not apply to health care 218
facilities which had contracts for the above services with a home 219
health agency on January 1, 1990. 220
(x) "Psychiatric residential treatment facility" 221
means any nonhospital establishment with permanent licensed 222
facilities which provides a twenty-four-hour program of care by 223
qualified therapists, including, but not limited to, duly licensed 224
mental health professionals, psychiatrists, psychologists, 225
psychotherapists and licensed certified social workers, for 226
emotionally disturbed children and adolescents referred to such 227
facility by a court, local school district or by the Department of 228
Human Services, who are not in an acute phase of illness requiring 229
the services of a psychiatric hospital, and are in need of such 230
restorative treatment services. For purposes of this 231
subparagraph, the term "emotionally disturbed" means a condition 232
exhibiting one or more of the following characteristics over a 233
long period of time and to a marked degree, which adversely 234
affects educational performance: 235
1. An inability to learn which cannot be 236
explained by intellectual, sensory or health factors; 237
2. An inability to build or maintain 238
satisfactory relationships with peers and teachers; 239
3. Inappropriate types of behavior or 240
feelings under normal circumstances; 241
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4. A general pervasive mood of unhappiness or 242
depression; or 243
5. A tendency to develop physical symptoms or 244
fears associated with personal or school problems. An 245
establishment furnishing primarily domiciliary care is not within 246
this definition. 247
(xi) "Pediatric skilled nursing facility" means an 248
institution or a distinct part of an institution that is primarily 249
engaged in providing to inpatients skilled nursing care and 250
related services for persons under twenty-one (21) years of age 251
who require medical or nursing care or rehabilitation services for 252
the rehabilitation of injured, disabled or sick persons. 253
(xii) "Long-term care hospital" means a 254
freestanding, Medicare-certified hospital that has an average 255
length of inpatient stay greater than twenty-five (25) days, which 256
is primarily engaged in providing chronic or long-term medical 257
care to patients who do not require more than three (3) hours of 258
rehabilitation or comprehensive rehabilitation per day, and has a 259
transfer agreement with an acute care medical center and a 260
comprehensive medical rehabilitation facility. Long-term care 261
hospitals shall not use rehabilitation, comprehensive medical 262
rehabilitation, medical rehabilitation, sub-acute rehabilitation, 263
nursing home, skilled nursing facility or sub-acute care facility 264
in association with its name. 265
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(xiii) "Comprehensive medical rehabilitation 266
facility" means a hospital or hospital unit that is licensed 267
and/or certified as a comprehensive medical rehabilitation 268
facility which provides specialized programs that are accredited 269
by the Commission on Accreditation of Rehabilitation Facilities 270
and supervised by a physician board certified or board eligible in 271
physiatry or other doctor of medicine or osteopathy with at least 272
two (2) years of training in the medical direction of a 273
comprehensive rehabilitation program that: 274
1. Includes evaluation and treatment of 275
individuals with physical disabilities; 276
2. Emphasizes education and training of 277
individuals with disabilities; 278
3. Incorporates at least the following core 279
disciplines: 280
a. Physical Therapy; 281
b. Occupational Therapy; 282
c. Speech and Language Therapy; 283
d. Rehabilitation Nursing; and 284
4. Incorporates at least three (3) of the 285
following disciplines: 286
a. Psychology; 287
b. Audiology; 288
c. Respiratory Therapy; 289
d. Therapeutic Recreation; 290
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e. Orthotics; 291
f. Prosthetics; 292
g. Special Education; 293
h. Vocational Rehabilitation; 294
i. Psychotherapy; 295
j. Social Work; 296
k. Rehabilitation Engineering. 297
These specialized programs include, but are not limited to: 298
spinal cord injury programs, head injury programs and infant and 299
early childhood development programs. 300
(i) "Health maintenance organization" or "HMO" means a 301
public or private organization organized under the laws of this 302
state or the federal government which: 303
(i) Provides or otherwise makes available to 304
enrolled participants health care services, including 305
substantially the following basic health care services: usual 306
physician services, hospitalization, laboratory, x-ray, emergency 307
and preventive services, and out-of-area coverage; 308
(ii) Is compensated (except for copayments) for 309
the provision of the basic health care services listed in 310
subparagraph (i) of this paragraph to enrolled participants on a 311
predetermined basis; and 312
(iii) Provides physician services primarily: 313
1. Directly through physicians who are either 314
employees or partners of such organization; or 315
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2. Through arrangements with individual 316
physicians or one or more groups of physicians (organized on a 317
group practice or individual practice basis). 318
(j) "Health service area" means a geographic area of 319
the state designated in the State Health Plan as the area to be 320
used in planning for specified health facilities and services and 321
to be used when considering certificate of need applications to 322
provide health facilities and services. 323
(k) "Health services" means clinically related (i.e., 324
diagnostic, treatment or rehabilitative) services and includes 325
alcohol, drug abuse, mental health and home health care services. 326
"Clinical health services" shall only include those activities 327
which contemplate any change in the existing bed complement of any 328
health care facility through the addition or conversion of any 329
beds, under Section 41-7-191(1)(c) or propose to offer any health 330
services if those services have not been provided on a regular 331
basis by the proposed provider of such services within the period 332
of twelve (12) months prior to the time such services would be 333
offered, under Section 41-7-191(1)(d). "Nonclinical health 334
services" shall be all other services which do not involve any 335
change in the existing bed complement or offering health services 336
as described above. 337
(l) "Institutional health services" shall mean health 338
services provided in or through health care facilities and shall 339
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include the entities in or through which such services are 340
provided. 341
(m) "Major medical equipment" means medical equipment 342
designed for providing medical or any health-related service which 343
costs in excess of One Million Five Hundred Thousand Dollars 344
($1,500,000.00). However, this definition shall not be applicable 345
to clinical laboratories if they are determined by the State 346
Department of Health to be independent of any physician's office, 347
hospital or other health care facility or otherwise not so defined 348
by federal or state law, or rules and regulations promulgated 349
thereunder. 350
(n) "State Department of Health" or "department" shall 351
mean the state agency created under Section 41-3-15, which shall 352
be considered to be the State Health Planning and Development 353
Agency, as defined in paragraph (u) of this section. 354
(o) "Offer," when used in connection with health 355
services, means that it has been determined by the State 356
Department of Health that the health care facility is capable of 357
providing specified health services. 358
(p) "Person" means an individual, a trust or estate, 359
partnership, corporation (including associations, joint-stock 360
companies and insurance companies), the state or a political 361
subdivision or instrumentality of the state. 362
(q) "Provider" shall mean any person who is a provider 363
or representative of a provider of health care services requiring 364
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a certificate of need under Section 41-7-171 et seq., or who has 365
any financial or indirect interest in any provider of services. 366
(r) "Radiation therapy services" means the treatment of 367
cancer and other diseases using ionizing radiation of either high 368
energy photons (x-rays or gamma rays) or charged particles 369
(electrons, protons or heavy nuclei). However, for purposes of a 370
certificate of need, radiation therapy services shall not include 371
low energy, superficial, external beam x-ray treatment of 372
superficial skin lesions. 373
(s) "Secretary" means the Secretary of Health and Human 374
Services, and any officer or employee of the Department of Health 375
and Human Services to whom the authority involved has been 376
delegated. 377
(t) "State Health Plan" means the sole and official 378
statewide health plan for Mississippi which identifies priority 379
state health needs and establishes standards and criteria for 380
health-related activities which require certificate of need review 381
in compliance with Section 41-7-191. 382
(u) "State Health Planning and Development Agency" 383
means the agency of state government designated to perform health 384
planning and resource development programs for the State of 385
Mississippi. 386
SECTION 3. Section 41-7-175, Mississippi Code of 1972, is 387
brought forward as follows: 388
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41-7-175. The State Department of Health shall be the sole 389
and official agency of the State of Mississippi to administer and 390
supervise, as prescribed by the Legislature, all responsibilities 391
of the state health planning and development agency. 392
SECTION 4. Section 41-7-183, Mississippi Code of 1972, is 393
brought forward as follows: 394
41-7-183. The State Department of Health shall have the duty 395
of administering all functions and responsibilities of the 396
designated state health planning and development agency as 397
prescribed by the Legislature, and shall serve as the designated 398
planning agency of the state for purposes of Section 1122 of 399
Public Law 92-603 for the period of time that a contract is in 400
effect between the Secretary and the State Department of Health 401
for such purposes. 402
SECTION 5. Section 41-7-185, Mississippi Code of 1972, is 403
amended as follows: 404
41-7-185. In carrying out its functions under Section 405
41-7-171 et seq., the State Department of Health is hereby 406
empowered to: 407
(a) Make applications for and accept funds from the 408
secretary and other federal and state agencies and to receive and 409
administer such other funds for the planning or provision of 410
health facilities or health care as are appropriate to the 411
accomplishment of the purposes of Section 41-7-171 et seq. * * *, 412
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and to contract with the secretary to accept funds to administer 413
planning activities on the community, regional or state level; 414
(b) With the approval of the secretary, delegate to or 415
contract with any mutually agreeable department, division or 416
agency of the state, the federal government, or any political 417
subdivision of either, or any private corporation, organization or 418
association chartered by the Secretary of State of Mississippi, 419
authority for administering any programs, duties or functions 420
provided for in Section 41-7-171 * * * et seq.; 421
(c) Prescribe and promulgate such reasonable rules and 422
regulations as may be necessary to the implementation of the 423
purposes of Section 41-7-171 * * * et seq., complying with Section 424
25-43-1 * * * et seq.; 425
(d) Require providers of institutional health services 426
and home health care services provided through a home health 427
agency and any other provider of health care requiring a 428
certificate of need to submit or make available statistical 429
information or such other information requested by the State 430
Department of Health, but not information that would constitute an 431
unwarranted invasion of the personal privacy of any individual 432
person or place the provider in jeopardy of legal action by a 433
third party; 434
(e) Conduct such other hearing or hearings in addition 435
to those provided for in Section 41-7-197, and enter such further 436
order or orders, and with approval of the Governor enter into such 437
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agreement or agreements with the secretary as may be reasonably 438
necessary to the realization by the people of Mississippi of the 439
full benefits of Acts of Congress; 440
(f) In its discretion, contract with the secretary, or 441
terminate any such contract, for the administration of the 442
provisions, programs, duties and functions of Section 1122 of 443
Public Law 92-603; but the State Department of Health shall not be 444
relieved of matters of accountability, obligation or 445
responsibility that accrued to the department by virtue of prior 446
contracts and/or statutes; 447
(g) Prepare, review at least triennially, and revise, 448
as necessary, a State Health Plan, as defined in Section 41-7-173, 449
which shall be approved by the Governor before it becomes 450
effective. 451
SECTION 6. Section 41-7-187, Mississippi Code of 1972, is 452
brought forward as follows: 453
41-7-187. The State Department of Health is hereby 454
authorized to develop and implement a statewide health certificate 455
of need program. The State Department of Health is authorized and 456
empowered to adopt by rule and regulation: 457
(a) Criteria, standards and plans to be used in 458
evaluating applications for certificates of need; 459
(b) Effective standards to determine when a person, 460
facility or organization must apply for a certificate of need; 461
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(c) Standards to determine when a change of ownership 462
has occurred or will occur; and 463
(d) Review procedures for conducting reviews of 464
applications for certificates of need. 465
SECTION 7. Section 41-7-188, Mississippi Code of 1972, is 466
brought forward as follows: 467
41-7-188. (1) The State Department of Health is hereby 468
authorized and empowered to assess fees for reviewing applications 469
for certificates of need. The State Department of Health shall 470
promulgate such rules and regulations as are necessary to 471
effectuate the intent of this section in keeping with the 472
standards hereinbelow: 473
(a) The fees assessed shall be uniform to all 474
applicants. 475
(b) The fees assessed shall be nonrefundable. 476
(c) The fee shall be .5 of 1% of the amount of a 477
proposed capital expenditure. 478
(d) The minimum fee shall not be less than Five Hundred 479
Dollars ($500.00) regardless of the amount of the proposed capital 480
expenditure, and the maximum fee permitted shall not exceed 481
Twenty-five Thousand Dollars ($25,000.00), regardless of category. 482
(e) No application shall be deemed complete for the 483
review process until such required fee is received by the State 484
Department of Health. 485
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(f) The required fee shall be paid to the State 486
Department of Health and may be paid by check, draft or money 487
order. 488
(g) There shall be no filing fee requirement for any 489
application submitted by an agency, department, institution or 490
facility which is operated, owned by and/or controlled by the 491
State of Mississippi and which received operating and/or capital 492
expenditure funds solely by appropriations from the Legislature of 493
the state. 494
(h) There shall be no filing fee requirement for any 495
health-care facility submitting an application for repairs or 496
renovations determined by the State Department of Health in 497
writing, to be necessary in order to avoid revocation of license 498
and/or loss of certification for participation in the Medicaid 499
and/or Medicare programs. Any proposed expenditure in excess of 500
the amount determined by the State Department of Health to be 501
necessary to accomplish the stated purposes shall be subject to 502
the fee requirements of this section. 503
(2) The revenue derived from the fees imposed in subsection 504
(1) of this section shall be deposited by the State Department of 505
Health in a special fund, hereby created in the State Treasury, 506
which is earmarked for use by the State Department of Health in 507
conducting its health planning and certificate of need review 508
activities. It is the intent of the Legislature that the health 509
planning and certificate of need programs be continued for the 510
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protection of the individuals within the state requiring health 511
care. 512
(3) The State Department of Health is authorized and 513
empowered to assess fees for reviewing applications for 514
certificates of authority for health maintenance organizations and 515
for the issuance and renewal of such certificates of authority. 516
The fees assessed shall be uniform to all applicants and to all 517
holders of certificates of authority, and shall be nonrefundable. 518
The fees for applications, original certificates of authority and 519
renewals of certificates of authority shall not exceed Five 520
Thousand Dollars ($5,000.00) each. The revenues derived from the 521
fees assessed under this subsection shall be deposited by the 522
department in a special fund hereby created in the State Treasury, 523
which is earmarked for the use of the department in its regulation 524
of the operation of health maintenance organizations. 525
SECTION 8. Section 41-7-189, Mississippi Code of 1972, is 526
brought forward as follows: 527
41-7-189. (1) Prior to review of new institutional health 528
services or other proposals requiring a certificate of need, the 529
State Department of Health shall disseminate to all health care 530
facilities and health maintenance organizations within the state, 531
and shall publish in one or more newspapers of general circulation 532
in the state, a description of the scope of coverage of the 533
commission's certificate of need program. Whenever the scope of 534
such coverage is revised, the State Department of Health shall 535
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disseminate and publish a revised description thereof in like 536
manner. 537
(2) Selected statistical data and information obtained by 538
the State Department of Health as the licensing agency for health 539
care facilities requiring licensure by the state and as the agency 540
which provides certification for the Medicaid and/or Medicare 541
program, may be utilized by the department in performing the 542
statutory duties imposed upon it by any law over which it has 543
authority, and regulations necessarily promulgated for such 544
facilities to participate in the Medicaid and/or Medicare program; 545
provided, however, that the names of individual patients shall not 546
be revealed except in hearings or judicial proceedings regarding 547
questions of licensure. 548
SECTION 9. Section 41-7-190, Mississippi Code of 1972, is 549
brought forward as follows: 550
41-7-190. No corporation, foreign or domestic, partnership, 551
individual(s) or association of such entities or of persons 552
whatsoever, or any combination thereof, shall own, possess or 553
exercise control over, in any manner, more than twenty percent 554
(20%) of the beds in health care facilities defined in Section 555
41-7-173(h)(iv) and (vi) in the defined health service area of the 556
State of Mississippi. 557
Health care facilities owned, operated or under control of 558
the United States government, the state government or political 559
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subdivision of either are excluded from the limitation of this 560
section. 561
SECTION 10. Section 41-7-191, Mississippi Code of 1972, is 562
brought forward as follows: 563
41-7-191. (1) No person shall engage in any of the 564
following activities without obtaining the required certificate of 565
need: 566
(a) The construction, development or other 567
establishment of a new health care facility, which establishment 568
shall include the reopening of a health care facility that has 569
ceased to operate for a period of sixty (60) months or more; 570
(b) The relocation of a health care facility or portion 571
thereof, or major medical equipment, unless such relocation of a 572
health care facility or portion thereof, or major medical 573
equipment, which does not involve a capital expenditure by or on 574
behalf of a health care facility, is within five thousand two 575
hundred eighty (5,280) feet from the main entrance of the health 576
care facility; 577
(c) Any change in the existing bed complement of any 578
health care facility through the addition or conversion of any 579
beds or the alteration, modernizing or refurbishing of any unit or 580
department in which the beds may be located; however, if a health 581
care facility has voluntarily delicensed some of its existing bed 582
complement, it may later relicense some or all of its delicensed 583
beds without the necessity of having to acquire a certificate of 584
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need. The State Department of Health shall maintain a record of 585
the delicensing health care facility and its voluntarily 586
delicensed beds and continue counting those beds as part of the 587
state's total bed count for health care planning purposes. If a 588
health care facility that has voluntarily delicensed some of its 589
beds later desires to relicense some or all of its voluntarily 590
delicensed beds, it shall notify the State Department of Health of 591
its intent to increase the number of its licensed beds. The State 592
Department of Health shall survey the health care facility within 593
thirty (30) days of that notice and, if appropriate, issue the 594
health care facility a new license reflecting the new contingent 595
of beds. However, in no event may a health care facility that has 596
voluntarily delicensed some of its beds be reissued a license to 597
operate beds in excess of its bed count before the voluntary 598
delicensure of some of its beds without seeking certificate of 599
need approval; 600
(d) Offering of the following health services if those 601
services have not been provided on a regular basis by the proposed 602
provider of such services within the period of twelve (12) months 603
prior to the time such services would be offered: 604
(i) Open-heart surgery services; 605
(ii) Cardiac catheterization services; 606
(iii) Comprehensive inpatient rehabilitation 607
services; 608
(iv) Licensed psychiatric services; 609
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(v) Licensed chemical dependency services; 610
(vi) Radiation therapy services; 611
(vii) Diagnostic imaging services of an invasive 612
nature, i.e. invasive digital angiography; 613
(viii) Nursing home care as defined in 614
subparagraphs (iv), (vi) and (viii) of Section 41-7-173(h); 615
(ix) Home health services; 616
(x) Swing-bed services; 617
(xi) Ambulatory surgical services; 618
(xii) Magnetic resonance imaging services; 619
(xiii) [Deleted] 620
(xiv) Long-term care hospital services; 621
(xv) Positron emission tomography (PET) services; 622
(e) The relocation of one or more health services from 623
one physical facility or site to another physical facility or 624
site, unless such relocation, which does not involve a capital 625
expenditure by or on behalf of a health care facility, (i) is to a 626
physical facility or site within five thousand two hundred eighty 627
(5,280) feet from the main entrance of the health care facility 628
where the health care service is located, or (ii) is the result of 629
an order of a court of appropriate jurisdiction or a result of 630
pending litigation in such court, or by order of the State 631
Department of Health, or by order of any other agency or legal 632
entity of the state, the federal government, or any political 633
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subdivision of either, whose order is also approved by the State 634
Department of Health; 635
(f) The acquisition or otherwise control of any major 636
medical equipment for the provision of medical services; however, 637
(i) the acquisition of any major medical equipment used only for 638
research purposes, and (ii) the acquisition of major medical 639
equipment to replace medical equipment for which a facility is 640
already providing medical services and for which the State 641
Department of Health has been notified before the date of such 642
acquisition shall be exempt from this paragraph; an acquisition 643
for less than fair market value must be reviewed, if the 644
acquisition at fair market value would be subject to review; 645
(g) Changes of ownership of existing health care 646
facilities in which a notice of intent is not filed with the State 647
Department of Health at least thirty (30) days prior to the date 648
such change of ownership occurs, or a change in services or bed 649
capacity as prescribed in paragraph (c) or (d) of this subsection 650
as a result of the change of ownership; an acquisition for less 651
than fair market value must be reviewed, if the acquisition at 652
fair market value would be subject to review; 653
(h) The change of ownership of any health care facility 654
defined in subparagraphs (iv), (vi) and (viii) of Section 655
41-7-173(h), in which a notice of intent as described in paragraph 656
(g) has not been filed and if the Executive Director, Division of 657
Medicaid, Office of the Governor, has not certified in writing 658
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that there will be no increase in allowable costs to Medicaid from 659
revaluation of the assets or from increased interest and 660
depreciation as a result of the proposed change of ownership; 661
(i) Any activity described in paragraphs (a) through 662
(h) if undertaken by any person if that same activity would 663
require certificate of need approval if undertaken by a health 664
care facility; 665
(j) Any capital expenditure or deferred capital 666
expenditure by or on behalf of a health care facility not covered 667
by paragraphs (a) through (h); 668
(k) The contracting of a health care facility as 669
defined in subparagraphs (i) through (viii) of Section 41-7-173(h) 670
to establish a home office, subunit, or branch office in the space 671
operated as a health care facility through a formal arrangement 672
with an existing health care facility as defined in subparagraph 673
(ix) of Section 41-7-173(h); 674
(l) The replacement or relocation of a health care 675
facility designated as a critical access hospital shall be exempt 676
from subsection (1) of this section so long as the critical access 677
hospital complies with all applicable federal law and regulations 678
regarding such replacement or relocation; 679
(m) Reopening a health care facility that has ceased to 680
operate for a period of sixty (60) months or more, which reopening 681
requires a certificate of need for the establishment of a new 682
health care facility. 683
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(2) The State Department of Health shall not grant approval 684
for or issue a certificate of need to any person proposing the new 685
construction of, addition to, or expansion of any health care 686
facility defined in subparagraphs (iv) (skilled nursing facility) 687
and (vi) (intermediate care facility) of Section 41-7-173(h) or 688
the conversion of vacant hospital beds to provide skilled or 689
intermediate nursing home care, except as hereinafter authorized: 690
(a) The department may issue a certificate of need to 691
any person proposing the new construction of any health care 692
facility defined in subparagraphs (iv) and (vi) of Section 693
41-7-173(h) as part of a life care retirement facility, in any 694
county bordering on the Gulf of Mexico in which is located a 695
National Aeronautics and Space Administration facility, not to 696
exceed forty (40) beds. From and after July 1, 1999, there shall 697
be no prohibition or restrictions on participation in the Medicaid 698
program (Section 43-13-101 et seq.) for the beds in the health 699
care facility that were authorized under this paragraph (a). 700
(b) The department may issue certificates of need in 701
Harrison County to provide skilled nursing home care for 702
Alzheimer's disease patients and other patients, not to exceed one 703
hundred fifty (150) beds. From and after July 1, 1999, there 704
shall be no prohibition or restrictions on participation in the 705
Medicaid program (Section 43-13-101 et seq.) for the beds in the 706
nursing facilities that were authorized under this paragraph (b). 707
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(c) The department may issue a certificate of need for 708
the addition to or expansion of any skilled nursing facility that 709
is part of an existing continuing care retirement community 710
located in Madison County, provided that the recipient of the 711
certificate of need agrees in writing that the skilled nursing 712
facility will not at any time participate in the Medicaid program 713
(Section 43-13-101 et seq.) or admit or keep any patients in the 714
skilled nursing facility who are participating in the Medicaid 715
program. This written agreement by the recipient of the 716
certificate of need shall be fully binding on any subsequent owner 717
of the skilled nursing facility, if the ownership of the facility 718
is transferred at any time after the issuance of the certificate 719
of need. Agreement that the skilled nursing facility will not 720
participate in the Medicaid program shall be a condition of the 721
issuance of a certificate of need to any person under this 722
paragraph (c), and if such skilled nursing facility at any time 723
after the issuance of the certificate of need, regardless of the 724
ownership of the facility, participates in the Medicaid program or 725
admits or keeps any patients in the facility who are participating 726
in the Medicaid program, the State Department of Health shall 727
revoke the certificate of need, if it is still outstanding, and 728
shall deny or revoke the license of the skilled nursing facility, 729
at the time that the department determines, after a hearing 730
complying with due process, that the facility has failed to comply 731
with any of the conditions upon which the certificate of need was 732
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issued, as provided in this paragraph and in the written agreement 733
by the recipient of the certificate of need. The total number of 734
beds that may be authorized under the authority of this paragraph 735
(c) shall not exceed sixty (60) beds. 736
(d) The State Department of Health may issue a 737
certificate of need to any hospital located in DeSoto County for 738
the new construction of a skilled nursing facility, not to exceed 739
one hundred twenty (120) beds, in DeSoto County. From and after 740
July 1, 1999, there shall be no prohibition or restrictions on 741
participation in the Medicaid program (Section 43-13-101 et seq.) 742
for the beds in the nursing facility that were authorized under 743
this paragraph (d). 744
(e) The State Department of Health may issue a 745
certificate of need for the construction of a nursing facility or 746
the conversion of beds to nursing facility beds at a personal care 747
facility for the elderly in Lowndes County that is owned and 748
operated by a Mississippi nonprofit corporation, not to exceed 749
sixty (60) beds. From and after July 1, 1999, there shall be no 750
prohibition or restrictions on participation in the Medicaid 751
program (Section 43-13-101 et seq.) for the beds in the nursing 752
facility that were authorized under this paragraph (e). 753
(f) The State Department of Health may issue a 754
certificate of need for conversion of a county hospital facility 755
in Itawamba County to a nursing facility, not to exceed sixty (60) 756
beds, including any necessary construction, renovation or 757
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expansion. From and after July 1, 1999, there shall be no 758
prohibition or restrictions on participation in the Medicaid 759
program (Section 43-13-101 et seq.) for the beds in the nursing 760
facility that were authorized under this paragraph (f). 761
(g) The State Department of Health may issue a 762
certificate of need for the construction or expansion of nursing 763
facility beds or the conversion of other beds to nursing facility 764
beds in either Hinds, Madison or Rankin County, not to exceed 765
sixty (60) beds. From and after July 1, 1999, there shall be no 766
prohibition or restrictions on participation in the Medicaid 767
program (Section 43-13-101 et seq.) for the beds in the nursing 768
facility that were authorized under this paragraph (g). 769
(h) The State Department of Health may issue a 770
certificate of need for the construction or expansion of nursing 771
facility beds or the conversion of other beds to nursing facility 772
beds in either Hancock, Harrison or Jackson County, not to exceed 773
sixty (60) beds. From and after July 1, 1999, there shall be no 774
prohibition or restrictions on participation in the Medicaid 775
program (Section 43-13-101 et seq.) for the beds in the facility 776
that were authorized under this paragraph (h). 777
(i) The department may issue a certificate of need for 778
the new construction of a skilled nursing facility in Leake 779
County, provided that the recipient of the certificate of need 780
agrees in writing that the skilled nursing facility will not at 781
any time participate in the Medicaid program (Section 43-13-101 et 782
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seq.) or admit or keep any patients in the skilled nursing 783
facility who are participating in the Medicaid program. This 784
written agreement by the recipient of the certificate of need 785
shall be fully binding on any subsequent owner of the skilled 786
nursing facility, if the ownership of the facility is transferred 787
at any time after the issuance of the certificate of need. 788
Agreement that the skilled nursing facility will not participate 789
in the Medicaid program shall be a condition of the issuance of a 790
certificate of need to any person under this paragraph (i), and if 791
such skilled nursing facility at any time after the issuance of 792
the certificate of need, regardless of the ownership of the 793
facility, participates in the Medicaid program or admits or keeps 794
any patients in the facility who are participating in the Medicaid 795
program, the State Department of Health shall revoke the 796
certificate of need, if it is still outstanding, and shall deny or 797
revoke the license of the skilled nursing facility, at the time 798
that the department determines, after a hearing complying with due 799
process, that the facility has failed to comply with any of the 800
conditions upon which the certificate of need was issued, as 801
provided in this paragraph and in the written agreement by the 802
recipient of the certificate of need. The provision of Section 803
41-7-193(1) regarding substantial compliance of the projection of 804
need as reported in the current State Health Plan is waived for 805
the purposes of this paragraph. The total number of nursing 806
facility beds that may be authorized by any certificate of need 807
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issued under this paragraph (i) shall not exceed sixty (60) beds. 808
If the skilled nursing facility authorized by the certificate of 809
need issued under this paragraph is not constructed and fully 810
operational within eighteen (18) months after July 1, 1994, the 811
State Department of Health, after a hearing complying with due 812
process, shall revoke the certificate of need, if it is still 813
outstanding, and shall not issue a license for the skilled nursing 814
facility at any time after the expiration of the eighteen-month 815
period. 816
(j) The department may issue certificates of need to 817
allow any existing freestanding long-term care facility in 818
Tishomingo County and Hancock County that on July 1, 1995, is 819
licensed with fewer than sixty (60) beds. For the purposes of 820
this paragraph (j), the provisions of Section 41-7-193(1) 821
requiring substantial compliance with the projection of need as 822
reported in the current State Health Plan are waived. From and 823
after July 1, 1999, there shall be no prohibition or restrictions 824
on participation in the Medicaid program (Section 43-13-101 et 825
seq.) for the beds in the long-term care facilities that were 826
authorized under this paragraph (j). 827
(k) The department may issue a certificate of need for 828
the construction of a nursing facility at a continuing care 829
retirement community in Lowndes County. The total number of beds 830
that may be authorized under the authority of this paragraph (k) 831
shall not exceed sixty (60) beds. From and after July 1, 2001, 832
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the prohibition on the facility participating in the Medicaid 833
program (Section 43-13-101 et seq.) that was a condition of 834
issuance of the certificate of need under this paragraph (k) shall 835
be revised as follows: The nursing facility may participate in 836
the Medicaid program from and after July 1, 2001, if the owner of 837
the facility on July 1, 2001, agrees in writing that no more than 838
thirty (30) of the beds at the facility will be certified for 839
participation in the Medicaid program, and that no claim will be 840
submitted for Medicaid reimbursement for more than thirty (30) 841
patients in the facility in any month or for any patient in the 842
facility who is in a bed that is not Medicaid-certified. This 843
written agreement by the owner of the facility shall be a 844
condition of licensure of the facility, and the agreement shall be 845
fully binding on any subsequent owner of the facility if the 846
ownership of the facility is transferred at any time after July 1, 847
2001. After this written agreement is executed, the Division of 848
Medicaid and the State Department of Health shall not certify more 849
than thirty (30) of the beds in the facility for participation in 850
the Medicaid program. If the facility violates the terms of the 851
written agreement by admitting or keeping in the facility on a 852
regular or continuing basis more than thirty (30) patients who are 853
participating in the Medicaid program, the State Department of 854
Health shall revoke the license of the facility, at the time that 855
the department determines, after a hearing complying with due 856
process, that the facility has violated the written agreement. 857
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(l) Provided that funds are specifically appropriated 858
therefor by the Legislature, the department may issue a 859
certificate of need to a rehabilitation hospital in Hinds County 860
for the construction of a sixty-bed long-term care nursing 861
facility dedicated to the care and treatment of persons with 862
severe disabilities including persons with spinal cord and 863
closed-head injuries and ventilator dependent patients. The 864
provisions of Section 41-7-193(1) regarding substantial compliance 865
with projection of need as reported in the current State Health 866
Plan are waived for the purpose of this paragraph. 867
(m) The State Department of Health may issue a 868
certificate of need to a county-owned hospital in the Second 869
Judicial District of Panola County for the conversion of not more 870
than seventy-two (72) hospital beds to nursing facility beds, 871
provided that the recipient of the certificate of need agrees in 872
writing that none of the beds at the nursing facility will be 873
certified for participation in the Medicaid program (Section 874
43-13-101 et seq.), and that no claim will be submitted for 875
Medicaid reimbursement in the nursing facility in any day or for 876
any patient in the nursing facility. This written agreement by 877
the recipient of the certificate of need shall be a condition of 878
the issuance of the certificate of need under this paragraph, and 879
the agreement shall be fully binding on any subsequent owner of 880
the nursing facility if the ownership of the nursing facility is 881
transferred at any time after the issuance of the certificate of 882
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need. After this written agreement is executed, the Division of 883
Medicaid and the State Department of Health shall not certify any 884
of the beds in the nursing facility for participation in the 885
Medicaid program. If the nursing facility violates the terms of 886
the written agreement by admitting or keeping in the nursing 887
facility on a regular or continuing basis any patients who are 888
participating in the Medicaid program, the State Department of 889
Health shall revoke the license of the nursing facility, at the 890
time that the department determines, after a hearing complying 891
with due process, that the nursing facility has violated the 892
condition upon which the certificate of need was issued, as 893
provided in this paragraph and in the written agreement. If the 894
certificate of need authorized under this paragraph is not issued 895
within twelve (12) months after July 1, 2001, the department shall 896
deny the application for the certificate of need and shall not 897
issue the certificate of need at any time after the twelve-month 898
period, unless the issuance is contested. If the certificate of 899
need is issued and substantial construction of the nursing 900
facility beds has not commenced within eighteen (18) months after 901
July 1, 2001, the State Department of Health, after a hearing 902
complying with due process, shall revoke the certificate of need 903
if it is still outstanding, and the department shall not issue a 904
license for the nursing facility at any time after the 905
eighteen-month period. However, if the issuance of the 906
certificate of need is contested, the department shall require 907
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substantial construction of the nursing facility beds within six 908
(6) months after final adjudication on the issuance of the 909
certificate of need. 910
(n) The department may issue a certificate of need for 911
the new construction, addition or conversion of skilled nursing 912
facility beds in Madison County, provided that the recipient of 913
the certificate of need agrees in writing that the skilled nursing 914
facility will not at any time participate in the Medicaid program 915
(Section 43-13-101 et seq.) or admit or keep any patients in the 916
skilled nursing facility who are participating in the Medicaid 917
program. This written agreement by the recipient of the 918
certificate of need shall be fully binding on any subsequent owner 919
of the skilled nursing facility, if the ownership of the facility 920
is transferred at any time after the issuance of the certificate 921
of need. Agreement that the skilled nursing facility will not 922
participate in the Medicaid program shall be a condition of the 923
issuance of a certificate of need to any person under this 924
paragraph (n), and if such skilled nursing facility at any time 925
after the issuance of the certificate of need, regardless of the 926
ownership of the facility, participates in the Medicaid program or 927
admits or keeps any patients in the facility who are participating 928
in the Medicaid program, the State Department of Health shall 929
revoke the certificate of need, if it is still outstanding, and 930
shall deny or revoke the license of the skilled nursing facility, 931
at the time that the department determines, after a hearing 932
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complying with due process, that the facility has failed to comply 933
with any of the conditions upon which the certificate of need was 934
issued, as provided in this paragraph and in the written agreement 935
by the recipient of the certificate of need. The total number of 936
nursing facility beds that may be authorized by any certificate of 937
need issued under this paragraph (n) shall not exceed sixty (60) 938
beds. If the certificate of need authorized under this paragraph 939
is not issued within twelve (12) months after July 1, 1998, the 940
department shall deny the application for the certificate of need 941
and shall not issue the certificate of need at any time after the 942
twelve-month period, unless the issuance is contested. If the 943
certificate of need is issued and substantial construction of the 944
nursing facility beds has not commenced within eighteen (18) 945
months after July 1, 1998, the State Department of Health, after a 946
hearing complying with due process, shall revoke the certificate 947
of need if it is still outstanding, and the department shall not 948
issue a license for the nursing facility at any time after the 949
eighteen-month period. However, if the issuance of the 950
certificate of need is contested, the department shall require 951
substantial construction of the nursing facility beds within six 952
(6) months after final adjudication on the issuance of the 953
certificate of need. 954
(o) The department may issue a certificate of need for 955
the new construction, addition or conversion of skilled nursing 956
facility beds in Leake County, provided that the recipient of the 957
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certificate of need agrees in writing that the skilled nursing 958
facility will not at any time participate in the Medicaid program 959
(Section 43-13-101 et seq.) or admit or keep any patients in the 960
skilled nursing facility who are participating in the Medicaid 961
program. This written agreement by the recipient of the 962
certificate of need shall be fully binding on any subsequent owner 963
of the skilled nursing facility, if the ownership of the facility 964
is transferred at any time after the issuance of the certificate 965
of need. Agreement that the skilled nursing facility will not 966
participate in the Medicaid program shall be a condition of the 967
issuance of a certificate of need to any person under this 968
paragraph (o), and if such skilled nursing facility at any time 969
after the issuance of the certificate of need, regardless of the 970
ownership of the facility, participates in the Medicaid program or 971
admits or keeps any patients in the facility who are participating 972
in the Medicaid program, the State Department of Health shall 973
revoke the certificate of need, if it is still outstanding, and 974
shall deny or revoke the license of the skilled nursing facility, 975
at the time that the department determines, after a hearing 976
complying with due process, that the facility has failed to comply 977
with any of the conditions upon which the certificate of need was 978
issued, as provided in this paragraph and in the written agreement 979
by the recipient of the certificate of need. The total number of 980
nursing facility beds that may be authorized by any certificate of 981
need issued under this paragraph (o) shall not exceed sixty (60) 982
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beds. If the certificate of need authorized under this paragraph 983
is not issued within twelve (12) months after July 1, 2001, the 984
department shall deny the application for the certificate of need 985
and shall not issue the certificate of need at any time after the 986
twelve-month period, unless the issuance is contested. If the 987
certificate of need is issued and substantial construction of the 988
nursing facility beds has not commenced within eighteen (18) 989
months after July 1, 2001, the State Department of Health, after a 990
hearing complying with due process, shall revoke the certificate 991
of need if it is still outstanding, and the department shall not 992
issue a license for the nursing facility at any time after the 993
eighteen-month period. However, if the issuance of the 994
certificate of need is contested, the department shall require 995
substantial construction of the nursing facility beds within six 996
(6) months after final adjudication on the issuance of the 997
certificate of need. 998
(p) The department may issue a certificate of need for 999
the construction of a municipally owned nursing facility within 1000
the Town of Belmont in Tishomingo County, not to exceed sixty (60) 1001
beds, provided that the recipient of the certificate of need 1002
agrees in writing that the skilled nursing facility will not at 1003
any time participate in the Medicaid program (Section 43-13-101 et 1004
seq.) or admit or keep any patients in the skilled nursing 1005
facility who are participating in the Medicaid program. This 1006
written agreement by the recipient of the certificate of need 1007
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shall be fully binding on any subsequent owner of the skilled 1008
nursing facility, if the ownership of the facility is transferred 1009
at any time after the issuance of the certificate of need. 1010
Agreement that the skilled nursing facility will not participate 1011
in the Medicaid program shall be a condition of the issuance of a 1012
certificate of need to any person under this paragraph (p), and if 1013
such skilled nursing facility at any time after the issuance of 1014
the certificate of need, regardless of the ownership of the 1015
facility, participates in the Medicaid program or admits or keeps 1016
any patients in the facility who are participating in the Medicaid 1017
program, the State Department of Health shall revoke the 1018
certificate of need, if it is still outstanding, and shall deny or 1019
revoke the license of the skilled nursing facility, at the time 1020
that the department determines, after a hearing complying with due 1021
process, that the facility has failed to comply with any of the 1022
conditions upon which the certificate of need was issued, as 1023
provided in this paragraph and in the written agreement by the 1024
recipient of the certificate of need. The provision of Section 1025
41-7-193(1) regarding substantial compliance of the projection of 1026
need as reported in the current State Health Plan is waived for 1027
the purposes of this paragraph. If the certificate of need 1028
authorized under this paragraph is not issued within twelve (12) 1029
months after July 1, 1998, the department shall deny the 1030
application for the certificate of need and shall not issue the 1031
certificate of need at any time after the twelve-month period, 1032
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unless the issuance is contested. If the certificate of need is 1033
issued and substantial construction of the nursing facility beds 1034
has not commenced within eighteen (18) months after July 1, 1998, 1035
the State Department of Health, after a hearing complying with due 1036
process, shall revoke the certificate of need if it is still 1037
outstanding, and the department shall not issue a license for the 1038
nursing facility at any time after the eighteen-month period. 1039
However, if the issuance of the certificate of need is contested, 1040
the department shall require substantial construction of the 1041
nursing facility beds within six (6) months after final 1042
adjudication on the issuance of the certificate of need. 1043
(q) (i) Beginning on July 1, 1999, the State 1044
Department of Health shall issue certificates of need during each 1045
of the next four (4) fiscal years for the construction or 1046
expansion of nursing facility beds or the conversion of other beds 1047
to nursing facility beds in each county in the state having a need 1048
for fifty (50) or more additional nursing facility beds, as shown 1049
in the fiscal year 1999 State Health Plan, in the manner provided 1050
in this paragraph (q). The total number of nursing facility beds 1051
that may be authorized by any certificate of need authorized under 1052
this paragraph (q) shall not exceed sixty (60) beds. 1053
(ii) Subject to the provisions of subparagraph 1054
(v), during each of the next four (4) fiscal years, the department 1055
shall issue six (6) certificates of need for new nursing facility 1056
beds, as follows: During fiscal years 2000, 2001 and 2002, one 1057
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(1) certificate of need shall be issued for new nursing facility 1058
beds in the county in each of the four (4) Long-Term Care Planning 1059
Districts designated in the fiscal year 1999 State Health Plan 1060
that has the highest need in the district for those beds; and two 1061
(2) certificates of need shall be issued for new nursing facility 1062
beds in the two (2) counties from the state at large that have the 1063
highest need in the state for those beds, when considering the 1064
need on a statewide basis and without regard to the Long-Term Care 1065
Planning Districts in which the counties are located. During 1066
fiscal year 2003, one (1) certificate of need shall be issued for 1067
new nursing facility beds in any county having a need for fifty 1068
(50) or more additional nursing facility beds, as shown in the 1069
fiscal year 1999 State Health Plan, that has not received a 1070
certificate of need under this paragraph (q) during the three (3) 1071
previous fiscal years. During fiscal year 2000, in addition to 1072
the six (6) certificates of need authorized in this subparagraph, 1073
the department also shall issue a certificate of need for new 1074
nursing facility beds in Amite County and a certificate of need 1075
for new nursing facility beds in Carroll County. 1076
(iii) Subject to the provisions of subparagraph 1077
(v), the certificate of need issued under subparagraph (ii) for 1078
nursing facility beds in each Long-Term Care Planning District 1079
during each fiscal year shall first be available for nursing 1080
facility beds in the county in the district having the highest 1081
need for those beds, as shown in the fiscal year 1999 State Health 1082
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Plan. If there are no applications for a certificate of need for 1083
nursing facility beds in the county having the highest need for 1084
those beds by the date specified by the department, then the 1085
certificate of need shall be available for nursing facility beds 1086
in other counties in the district in descending order of the need 1087
for those beds, from the county with the second highest need to 1088
the county with the lowest need, until an application is received 1089
for nursing facility beds in an eligible county in the district. 1090
(iv) Subject to the provisions of subparagraph 1091
(v), the certificate of need issued under subparagraph (ii) for 1092
nursing facility beds in the two (2) counties from the state at 1093
large during each fiscal year shall first be available for nursing 1094
facility beds in the two (2) counties that have the highest need 1095
in the state for those beds, as shown in the fiscal year 1999 1096
State Health Plan, when considering the need on a statewide basis 1097
and without regard to the Long-Term Care Planning Districts in 1098
which the counties are located. If there are no applications for 1099
a certificate of need for nursing facility beds in either of the 1100
two (2) counties having the highest need for those beds on a 1101
statewide basis by the date specified by the department, then the 1102
certificate of need shall be available for nursing facility beds 1103
in other counties from the state at large in descending order of 1104
the need for those beds on a statewide basis, from the county with 1105
the second highest need to the county with the lowest need, until 1106
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an application is received for nursing facility beds in an 1107
eligible county from the state at large. 1108
(v) If a certificate of need is authorized to be 1109
issued under this paragraph (q) for nursing facility beds in a 1110
county on the basis of the need in the Long-Term Care Planning 1111
District during any fiscal year of the four-year period, a 1112
certificate of need shall not also be available under this 1113
paragraph (q) for additional nursing facility beds in that county 1114
on the basis of the need in the state at large, and that county 1115
shall be excluded in determining which counties have the highest 1116
need for nursing facility beds in the state at large for that 1117
fiscal year. After a certificate of need has been issued under 1118
this paragraph (q) for nursing facility beds in a county during 1119
any fiscal year of the four-year period, a certificate of need 1120
shall not be available again under this paragraph (q) for 1121
additional nursing facility beds in that county during the 1122
four-year period, and that county shall be excluded in determining 1123
which counties have the highest need for nursing facility beds in 1124
succeeding fiscal years. 1125
(vi) If more than one (1) application is made for 1126
a certificate of need for nursing home facility beds available 1127
under this paragraph (q), in Yalobusha, Newton or Tallahatchie 1128
County, and one (1) of the applicants is a county-owned hospital 1129
located in the county where the nursing facility beds are 1130
available, the department shall give priority to the county-owned 1131
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hospital in granting the certificate of need if the following 1132
conditions are met: 1133
1. The county-owned hospital fully meets all 1134
applicable criteria and standards required to obtain a certificate 1135
of need for the nursing facility beds; and 1136
2. The county-owned hospital's qualifications 1137
for the certificate of need, as shown in its application and as 1138
determined by the department, are at least equal to the 1139
qualifications of the other applicants for the certificate of 1140
need. 1141
(r) (i) Beginning on July 1, 1999, the State 1142
Department of Health shall issue certificates of need during each 1143
of the next two (2) fiscal years for the construction or expansion 1144
of nursing facility beds or the conversion of other beds to 1145
nursing facility beds in each of the four (4) Long-Term Care 1146
Planning Districts designated in the fiscal year 1999 State Health 1147
Plan, to provide care exclusively to patients with Alzheimer's 1148
disease. 1149
(ii) Not more than twenty (20) beds may be 1150
authorized by any certificate of need issued under this paragraph 1151
(r), and not more than a total of sixty (60) beds may be 1152
authorized in any Long-Term Care Planning District by all 1153
certificates of need issued under this paragraph (r). However, 1154
the total number of beds that may be authorized by all 1155
certificates of need issued under this paragraph (r) during any 1156
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fiscal year shall not exceed one hundred twenty (120) beds, and 1157
the total number of beds that may be authorized in any Long-Term 1158
Care Planning District during any fiscal year shall not exceed 1159
forty (40) beds. Of the certificates of need that are issued for 1160
each Long-Term Care Planning District during the next two (2) 1161
fiscal years, at least one (1) shall be issued for beds in the 1162
northern part of the district, at least one (1) shall be issued 1163
for beds in the central part of the district, and at least one (1) 1164
shall be issued for beds in the southern part of the district. 1165
(iii) The State Department of Health, in 1166
consultation with the Department of Mental Health and the Division 1167
of Medicaid, shall develop and prescribe the staffing levels, 1168
space requirements and other standards and requirements that must 1169
be met with regard to the nursing facility beds authorized under 1170
this paragraph (r) to provide care exclusively to patients with 1171
Alzheimer's disease. 1172
(s) The State Department of Health may issue a 1173
certificate of need to a nonprofit skilled nursing facility using 1174
the Green House model of skilled nursing care and located in Yazoo 1175
City, Yazoo County, Mississippi, for the construction, expansion 1176
or conversion of not more than nineteen (19) nursing facility 1177
beds. For purposes of this paragraph (s), the provisions of 1178
Section 41-7-193(1) requiring substantial compliance with the 1179
projection of need as reported in the current State Health Plan 1180
and the provisions of Section 41-7-197 requiring a formal 1181
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certificate of need hearing process are waived. There shall be no 1182
prohibition or restrictions on participation in the Medicaid 1183
program for the person receiving the certificate of need 1184
authorized under this paragraph (s). 1185
(t) The State Department of Health shall issue 1186
certificates of need to the owner of a nursing facility in 1187
operation at the time of Hurricane Katrina in Hancock County that 1188
was not operational on December 31, 2005, because of damage 1189
sustained from Hurricane Katrina to authorize the following: (i) 1190
the construction of a new nursing facility in Harrison County; 1191
(ii) the relocation of forty-nine (49) nursing facility beds from 1192
the Hancock County facility to the new Harrison County facility; 1193
(iii) the establishment of not more than twenty (20) non-Medicaid 1194
nursing facility beds at the Hancock County facility; and (iv) the 1195
establishment of not more than twenty (20) non-Medicaid beds at 1196
the new Harrison County facility. The certificates of need that 1197
authorize the non-Medicaid nursing facility beds under 1198
subparagraphs (iii) and (iv) of this paragraph (t) shall be 1199
subject to the following conditions: The owner of the Hancock 1200
County facility and the new Harrison County facility must agree in 1201
writing that no more than fifty (50) of the beds at the Hancock 1202
County facility and no more than forty-nine (49) of the beds at 1203
the Harrison County facility will be certified for participation 1204
in the Medicaid program, and that no claim will be submitted for 1205
Medicaid reimbursement for more than fifty (50) patients in the 1206
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Hancock County facility in any month, or for more than forty-nine 1207
(49) patients in the Harrison County facility in any month, or for 1208
any patient in either facility who is in a bed that is not 1209
Medicaid-certified. This written agreement by the owner of the 1210
nursing facilities shall be a condition of the issuance of the 1211
certificates of need under this paragraph (t), and the agreement 1212
shall be fully binding on any later owner or owners of either 1213
facility if the ownership of either facility is transferred at any 1214
time after the certificates of need are issued. After this 1215
written agreement is executed, the Division of Medicaid and the 1216
State Department of Health shall not certify more than fifty (50) 1217
of the beds at the Hancock County facility or more than forty-nine 1218
(49) of the beds at the Harrison County facility for participation 1219
in the Medicaid program. If the Hancock County facility violates 1220
the terms of the written agreement by admitting or keeping in the 1221
facility on a regular or continuing basis more than fifty (50) 1222
patients who are participating in the Medicaid program, or if the 1223
Harrison County facility violates the terms of the written 1224
agreement by admitting or keeping in the facility on a regular or 1225
continuing basis more than forty-nine (49) patients who are 1226
participating in the Medicaid program, the State Department of 1227
Health shall revoke the license of the facility that is in 1228
violation of the agreement, at the time that the department 1229
determines, after a hearing complying with due process, that the 1230
facility has violated the agreement. 1231
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(u) The State Department of Health shall issue a 1232
certificate of need to a nonprofit venture for the establishment, 1233
construction and operation of a skilled nursing facility of not 1234
more than sixty (60) beds to provide skilled nursing care for 1235
ventilator dependent or otherwise medically dependent pediatric 1236
patients who require medical and nursing care or rehabilitation 1237
services to be located in a county in which an academic medical 1238
center and a children's hospital are located, and for any 1239
construction and for the acquisition of equipment related to those 1240
beds. The facility shall be authorized to keep such ventilator 1241
dependent or otherwise medically dependent pediatric patients 1242
beyond age twenty-one (21) in accordance with regulations of the 1243
State Board of Health. For purposes of this paragraph (u), the 1244
provisions of Section 41-7-193(1) requiring substantial compliance 1245
with the projection of need as reported in the current State 1246
Health Plan are waived, and the provisions of Section 41-7-197 1247
requiring a formal certificate of need hearing process are waived. 1248
The beds authorized by this paragraph shall be counted as 1249
pediatric skilled nursing facility beds for health planning 1250
purposes under Section 41-7-171 et seq. There shall be no 1251
prohibition of or restrictions on participation in the Medicaid 1252
program for the person receiving the certificate of need 1253
authorized by this paragraph. 1254
(3) The State Department of Health may grant approval for 1255
and issue certificates of need to any person proposing the new 1256
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construction of, addition to, conversion of beds of or expansion 1257
of any health care facility defined in subparagraph (x) 1258
(psychiatric residential treatment facility) of Section 1259
41-7-173(h). The total number of beds which may be authorized by 1260
such certificates of need shall not exceed three hundred 1261
thirty-four (334) beds for the entire state. 1262
(a) Of the total number of beds authorized under this 1263
subsection, the department shall issue a certificate of need to a 1264
privately owned psychiatric residential treatment facility in 1265
Simpson County for the conversion of sixteen (16) intermediate 1266
care facility for individuals with intellectual disabilities 1267
(ICF-IID) beds to psychiatric residential treatment facility beds, 1268
provided that facility agrees in writing that the facility shall 1269
give priority for the use of those sixteen (16) beds to 1270
Mississippi residents who are presently being treated in 1271
out-of-state facilities. 1272
(b) Of the total number of beds authorized under this 1273
subsection, the department may issue a certificate or certificates 1274
of need for the construction or expansion of psychiatric 1275
residential treatment facility beds or the conversion of other 1276
beds to psychiatric residential treatment facility beds in Warren 1277
County, not to exceed sixty (60) psychiatric residential treatment 1278
facility beds, provided that the facility agrees in writing that 1279
no more than thirty (30) of the beds at the psychiatric 1280
residential treatment facility will be certified for participation 1281
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in the Medicaid program (Section 43-13-101 et seq.) for the use of 1282
any patients other than those who are participating only in the 1283
Medicaid program of another state, and that no claim will be 1284
submitted to the Division of Medicaid for Medicaid reimbursement 1285
for more than thirty (30) patients in the psychiatric residential 1286
treatment facility in any day or for any patient in the 1287
psychiatric residential treatment facility who is in a bed that is 1288
not Medicaid-certified. This written agreement by the recipient 1289
of the certificate of need shall be a condition of the issuance of 1290
the certificate of need under this paragraph, and the agreement 1291
shall be fully binding on any subsequent owner of the psychiatric 1292
residential treatment facility if the ownership of the facility is 1293
transferred at any time after the issuance of the certificate of 1294
need. After this written agreement is executed, the Division of 1295
Medicaid and the State Department of Health shall not certify more 1296
than thirty (30) of the beds in the psychiatric residential 1297
treatment facility for participation in the Medicaid program for 1298
the use of any patients other than those who are participating 1299
only in the Medicaid program of another state. If the psychiatric 1300
residential treatment facility violates the terms of the written 1301
agreement by admitting or keeping in the facility on a regular or 1302
continuing basis more than thirty (30) patients who are 1303
participating in the Mississippi Medicaid program, the State 1304
Department of Health shall revoke the license of the facility, at 1305
the time that the department determines, after a hearing complying 1306
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with due process, that the facility has violated the condition 1307
upon which the certificate of need was issued, as provided in this 1308
paragraph and in the written agreement. 1309
The State Department of Health, on or before July 1, 2002, 1310
shall transfer the certificate of need authorized under the 1311
authority of this paragraph (b), or reissue the certificate of 1312
need if it has expired, to River Region Health System. 1313
(c) Of the total number of beds authorized under this 1314
subsection, the department shall issue a certificate of need to a 1315
hospital currently operating Medicaid-certified acute psychiatric 1316
beds for adolescents in DeSoto County, for the establishment of a 1317
forty-bed psychiatric residential treatment facility in DeSoto 1318
County, provided that the hospital agrees in writing (i) that the 1319
hospital shall give priority for the use of those forty (40) beds 1320
to Mississippi residents who are presently being treated in 1321
out-of-state facilities, and (ii) that no more than fifteen (15) 1322
of the beds at the psychiatric residential treatment facility will 1323
be certified for participation in the Medicaid program (Section 1324
43-13-101 et seq.), and that no claim will be submitted for 1325
Medicaid reimbursement for more than fifteen (15) patients in the 1326
psychiatric residential treatment facility in any day or for any 1327
patient in the psychiatric residential treatment facility who is 1328
in a bed that is not Medicaid-certified. This written agreement 1329
by the recipient of the certificate of need shall be a condition 1330
of the issuance of the certificate of need under this paragraph, 1331
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and the agreement shall be fully binding on any subsequent owner 1332
of the psychiatric residential treatment facility if the ownership 1333
of the facility is transferred at any time after the issuance of 1334
the certificate of need. After this written agreement is 1335
executed, the Division of Medicaid and the State Department of 1336
Health shall not certify more than fifteen (15) of the beds in the 1337
psychiatric residential treatment facility for participation in 1338
the Medicaid program. If the psychiatric residential treatment 1339
facility violates the terms of the written agreement by admitting 1340
or keeping in the facility on a regular or continuing basis more 1341
than fifteen (15) patients who are participating in the Medicaid 1342
program, the State Department of Health shall revoke the license 1343
of the facility, at the time that the department determines, after 1344
a hearing complying with due process, that the facility has 1345
violated the condition upon which the certificate of need was 1346
issued, as provided in this paragraph and in the written 1347
agreement. 1348
(d) Of the total number of beds authorized under this 1349
subsection, the department may issue a certificate or certificates 1350
of need for the construction or expansion of psychiatric 1351
residential treatment facility beds or the conversion of other 1352
beds to psychiatric treatment facility beds, not to exceed thirty 1353
(30) psychiatric residential treatment facility beds, in either 1354
Alcorn, Tishomingo, Prentiss, Lee, Itawamba, Monroe, Chickasaw, 1355
Pontotoc, Calhoun, Lafayette, Union, Benton or Tippah County. 1356
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(e) Of the total number of beds authorized under this 1357
subsection (3) the department shall issue a certificate of need to 1358
a privately owned, nonprofit psychiatric residential treatment 1359
facility in Hinds County for an eight-bed expansion of the 1360
facility, provided that the facility agrees in writing that the 1361
facility shall give priority for the use of those eight (8) beds 1362
to Mississippi residents who are presently being treated in 1363
out-of-state facilities. 1364
(f) The department shall issue a certificate of need to 1365
a one-hundred-thirty-four-bed specialty hospital located on 1366
twenty-nine and forty-four one-hundredths (29.44) commercial acres 1367
at 5900 Highway 39 North in Meridian (Lauderdale County), 1368
Mississippi, for the addition, construction or expansion of 1369
child/adolescent psychiatric residential treatment facility beds 1370
in Lauderdale County. As a condition of issuance of the 1371
certificate of need under this paragraph, the facility shall give 1372
priority in admissions to the child/adolescent psychiatric 1373
residential treatment facility beds authorized under this 1374
paragraph to patients who otherwise would require out-of-state 1375
placement. The Division of Medicaid, in conjunction with the 1376
Department of Human Services, shall furnish the facility a list of 1377
all out-of-state patients on a quarterly basis. Furthermore, 1378
notice shall also be provided to the parent, custodial parent or 1379
guardian of each out-of-state patient notifying them of the 1380
priority status granted by this paragraph. For purposes of this 1381
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paragraph, the provisions of Section 41-7-193(1) requiring 1382
substantial compliance with the projection of need as reported in 1383
the current State Health Plan are waived. The total number of 1384
child/adolescent psychiatric residential treatment facility beds 1385
that may be authorized under the authority of this paragraph shall 1386
be sixty (60) beds. There shall be no prohibition or restrictions 1387
on participation in the Medicaid program (Section 43-13-101 et 1388
seq.) for the person receiving the certificate of need authorized 1389
under this paragraph or for the beds converted pursuant to the 1390
authority of that certificate of need. 1391
(4) (a) From and after March 25, 2021, the department may 1392
issue a certificate of need to any person for the new construction 1393
of any hospital, psychiatric hospital or chemical dependency 1394
hospital that will contain any child/adolescent psychiatric or 1395
child/adolescent chemical dependency beds, or for the conversion 1396
of any other health care facility to a hospital, psychiatric 1397
hospital or chemical dependency hospital that will contain any 1398
child/adolescent psychiatric or child/adolescent chemical 1399
dependency beds. There shall be no prohibition or restrictions on 1400
participation in the Medicaid program (Section 43-13-101 et seq.) 1401
for the person(s) receiving the certificate(s) of need authorized 1402
under this paragraph (a) or for the beds converted pursuant to the 1403
authority of that certificate of need. In issuing any new 1404
certificate of need for any child/adolescent psychiatric or 1405
child/adolescent chemical dependency beds, either by new 1406
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construction or conversion of beds of another category, the 1407
department shall give preference to beds which will be located in 1408
an area of the state which does not have such beds located in it, 1409
and to a location more than sixty-five (65) miles from existing 1410
beds. Upon receiving 2020 census data, the department may amend 1411
the State Health Plan regarding child/adolescent psychiatric and 1412
child/adolescent chemical dependency beds to reflect the need 1413
based on new census data. 1414
(i) [Deleted] 1415
(ii) The department may issue a certificate of 1416
need for the conversion of existing beds in a county hospital in 1417
Choctaw County from acute care beds to child/adolescent chemical 1418
dependency beds. For purposes of this subparagraph (ii), the 1419
provisions of Section 41-7-193(1) requiring substantial compliance 1420
with the projection of need as reported in the current State 1421
Health Plan are waived. The total number of beds that may be 1422
authorized under authority of this subparagraph shall not exceed 1423
twenty (20) beds. There shall be no prohibition or restrictions 1424
on participation in the Medicaid program (Section 43-13-101 et 1425
seq.) for the hospital receiving the certificate of need 1426
authorized under this subparagraph or for the beds converted 1427
pursuant to the authority of that certificate of need. 1428
(iii) The department may issue a certificate or 1429
certificates of need for the construction or expansion of 1430
child/adolescent psychiatric beds or the conversion of other beds 1431
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to child/adolescent psychiatric beds in Warren County. For 1432
purposes of this subparagraph (iii), the provisions of Section 1433
41-7-193(1) requiring substantial compliance with the projection 1434
of need as reported in the current State Health Plan are waived. 1435
The total number of beds that may be authorized under the 1436
authority of this subparagraph shall not exceed twenty (20) beds. 1437
There shall be no prohibition or restrictions on participation in 1438
the Medicaid program (Section 43-13-101 et seq.) for the person 1439
receiving the certificate of need authorized under this 1440
subparagraph or for the beds converted pursuant to the authority 1441
of that certificate of need. 1442
If by January 1, 2002, there has been no significant 1443
commencement of construction of the beds authorized under this 1444
subparagraph (iii), or no significant action taken to convert 1445
existing beds to the beds authorized under this subparagraph, then 1446
the certificate of need that was previously issued under this 1447
subparagraph shall expire. If the previously issued certificate 1448
of need expires, the department may accept applications for 1449
issuance of another certificate of need for the beds authorized 1450
under this subparagraph, and may issue a certificate of need to 1451
authorize the construction, expansion or conversion of the beds 1452
authorized under this subparagraph. 1453
(iv) The department shall issue a certificate of 1454
need to the Region 7 Mental Health/Retardation Commission for the 1455
construction or expansion of child/adolescent psychiatric beds or 1456
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the conversion of other beds to child/adolescent psychiatric beds 1457
in any of the counties served by the commission. For purposes of 1458
this subparagraph (iv), the provisions of Section 41-7-193(1) 1459
requiring substantial compliance with the projection of need as 1460
reported in the current State Health Plan are waived. The total 1461
number of beds that may be authorized under the authority of this 1462
subparagraph shall not exceed twenty (20) beds. There shall be no 1463
prohibition or restrictions on participation in the Medicaid 1464
program (Section 43-13-101 et seq.) for the person receiving the 1465
certificate of need authorized under this subparagraph or for the 1466
beds converted pursuant to the authority of that certificate of 1467
need. 1468
(v) The department may issue a certificate of need 1469
to any county hospital located in Leflore County for the 1470
construction or expansion of adult psychiatric beds or the 1471
conversion of other beds to adult psychiatric beds, not to exceed 1472
twenty (20) beds, provided that the recipient of the certificate 1473
of need agrees in writing that the adult psychiatric beds will not 1474
at any time be certified for participation in the Medicaid program 1475
and that the hospital will not admit or keep any patients who are 1476
participating in the Medicaid program in any of such adult 1477
psychiatric beds. This written agreement by the recipient of the 1478
certificate of need shall be fully binding on any subsequent owner 1479
of the hospital if the ownership of the hospital is transferred at 1480
any time after the issuance of the certificate of need. Agreement 1481
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that the adult psychiatric beds will not be certified for 1482
participation in the Medicaid program shall be a condition of the 1483
issuance of a certificate of need to any person under this 1484
subparagraph (v), and if such hospital at any time after the 1485
issuance of the certificate of need, regardless of the ownership 1486
of the hospital, has any of such adult psychiatric beds certified 1487
for participation in the Medicaid program or admits or keeps any 1488
Medicaid patients in such adult psychiatric beds, the State 1489
Department of Health shall revoke the certificate of need, if it 1490
is still outstanding, and shall deny or revoke the license of the 1491
hospital at the time that the department determines, after a 1492
hearing complying with due process, that the hospital has failed 1493
to comply with any of the conditions upon which the certificate of 1494
need was issued, as provided in this subparagraph and in the 1495
written agreement by the recipient of the certificate of need. 1496
(vi) The department may issue a certificate or 1497
certificates of need for the expansion of child psychiatric beds 1498
or the conversion of other beds to child psychiatric beds at the 1499
University of Mississippi Medical Center. For purposes of this 1500
subparagraph (vi), the provisions of Section 41-7-193(1) requiring 1501
substantial compliance with the projection of need as reported in 1502
the current State Health Plan are waived. The total number of 1503
beds that may be authorized under the authority of this 1504
subparagraph shall not exceed fifteen (15) beds. There shall be 1505
no prohibition or restrictions on participation in the Medicaid 1506
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program (Section 43-13-101 et seq.) for the hospital receiving the 1507
certificate of need authorized under this subparagraph or for the 1508
beds converted pursuant to the authority of that certificate of 1509
need. 1510
(b) From and after July 1, 1990, no hospital, 1511
psychiatric hospital or chemical dependency hospital shall be 1512
authorized to add any child/adolescent psychiatric or 1513
child/adolescent chemical dependency beds or convert any beds of 1514
another category to child/adolescent psychiatric or 1515
child/adolescent chemical dependency beds without a certificate of 1516
need under the authority of subsection (1)(c) and subsection 1517
(4)(a) of this section. 1518
(5) The department may issue a certificate of need to a 1519
county hospital in Winston County for the conversion of fifteen 1520
(15) acute care beds to geriatric psychiatric care beds. 1521
(6) The State Department of Health shall issue a certificate 1522
of need to a Mississippi corporation qualified to manage a 1523
long-term care hospital as defined in Section 41-7-173(h)(xii) in 1524
Harrison County, not to exceed eighty (80) beds, including any 1525
necessary renovation or construction required for licensure and 1526
certification, provided that the recipient of the certificate of 1527
need agrees in writing that the long-term care hospital will not 1528
at any time participate in the Medicaid program (Section 43-13-101 1529
et seq.) or admit or keep any patients in the long-term care 1530
hospital who are participating in the Medicaid program. This 1531
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written agreement by the recipient of the certificate of need 1532
shall be fully binding on any subsequent owner of the long-term 1533
care hospital, if the ownership of the facility is transferred at 1534
any time after the issuance of the certificate of need. Agreement 1535
that the long-term care hospital will not participate in the 1536
Medicaid program shall be a condition of the issuance of a 1537
certificate of need to any person under this subsection (6), and 1538
if such long-term care hospital at any time after the issuance of 1539
the certificate of need, regardless of the ownership of the 1540
facility, participates in the Medicaid program or admits or keeps 1541
any patients in the facility who are participating in the Medicaid 1542
program, the State Department of Health shall revoke the 1543
certificate of need, if it is still outstanding, and shall deny or 1544
revoke the license of the long-term care hospital, at the time 1545
that the department determines, after a hearing complying with due 1546
process, that the facility has failed to comply with any of the 1547
conditions upon which the certificate of need was issued, as 1548
provided in this subsection and in the written agreement by the 1549
recipient of the certificate of need. For purposes of this 1550
subsection, the provisions of Section 41-7-193(1) requiring 1551
substantial compliance with the projection of need as reported in 1552
the current State Health Plan are waived. 1553
(7) The State Department of Health may issue a certificate 1554
of need to any hospital in the state to utilize a portion of its 1555
beds for the "swing-bed" concept. Any such hospital must be in 1556
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conformance with the federal regulations regarding such swing-bed 1557
concept at the time it submits its application for a certificate 1558
of need to the State Department of Health, except that such 1559
hospital may have more licensed beds or a higher average daily 1560
census (ADC) than the maximum number specified in federal 1561
regulations for participation in the swing-bed program. Any 1562
hospital meeting all federal requirements for participation in the 1563
swing-bed program which receives such certificate of need shall 1564
render services provided under the swing-bed concept to any 1565
patient eligible for Medicare (Title XVIII of the Social Security 1566
Act) who is certified by a physician to be in need of such 1567
services, and no such hospital shall permit any patient who is 1568
eligible for both Medicaid and Medicare or eligible only for 1569
Medicaid to stay in the swing beds of the hospital for more than 1570
thirty (30) days per admission unless the hospital receives prior 1571
approval for such patient from the Division of Medicaid, Office of 1572
the Governor. Any hospital having more licensed beds or a higher 1573
average daily census (ADC) than the maximum number specified in 1574
federal regulations for participation in the swing-bed program 1575
which receives such certificate of need shall develop a procedure 1576
to ensure that before a patient is allowed to stay in the swing 1577
beds of the hospital, there are no vacant nursing home beds 1578
available for that patient located within a fifty-mile radius of 1579
the hospital. When any such hospital has a patient staying in the 1580
swing beds of the hospital and the hospital receives notice from a 1581
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nursing home located within such radius that there is a vacant bed 1582
available for that patient, the hospital shall transfer the 1583
patient to the nursing home within a reasonable time after receipt 1584
of the notice. Any hospital which is subject to the requirements 1585
of the two (2) preceding sentences of this subsection may be 1586
suspended from participation in the swing-bed program for a 1587
reasonable period of time by the State Department of Health if the 1588
department, after a hearing complying with due process, determines 1589
that the hospital has failed to comply with any of those 1590
requirements. 1591
(8) The Department of Health shall not grant approval for or 1592
issue a certificate of need to any person proposing the new 1593
construction of, addition to or expansion of a health care 1594
facility as defined in subparagraph (viii) of Section 41-7-173(h), 1595
except as hereinafter provided: The department may issue a 1596
certificate of need to a nonprofit corporation located in Madison 1597
County, Mississippi, for the construction, expansion or conversion 1598
of not more than twenty (20) beds in a community living program 1599
for developmentally disabled adults in a facility as defined in 1600
subparagraph (viii) of Section 41-7-173(h). For purposes of this 1601
subsection (8), the provisions of Section 41-7-193(1) requiring 1602
substantial compliance with the projection of need as reported in 1603
the current State Health Plan and the provisions of Section 1604
41-7-197 requiring a formal certificate of need hearing process 1605
are waived. There shall be no prohibition or restrictions on 1606
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participation in the Medicaid program for the person receiving the 1607
certificate of need authorized under this subsection (8). 1608
(9) The Department of Health shall not grant approval for or 1609
issue a certificate of need to any person proposing the 1610
establishment of, or expansion of the currently approved territory 1611
of, or the contracting to establish a home office, subunit or 1612
branch office within the space operated as a health care facility 1613
as defined in Section 41-7-173(h)(i) through (viii) by a health 1614
care facility as defined in subparagraph (ix) of Section 1615
41-7-173(h). 1616
(10) Health care facilities owned and/or operated by the 1617
state or its agencies are exempt from the restraints in this 1618
section against issuance of a certificate of need if such addition 1619
or expansion consists of repairing or renovation necessary to 1620
comply with the state licensure law. This exception shall not 1621
apply to the new construction of any building by such state 1622
facility. This exception shall not apply to any health care 1623
facilities owned and/or operated by counties, municipalities, 1624
districts, unincorporated areas, other defined persons, or any 1625
combination thereof. 1626
(11) The new construction, renovation or expansion of or 1627
addition to any health care facility defined in subparagraph (ii) 1628
(psychiatric hospital), subparagraph (iv) (skilled nursing 1629
facility), subparagraph (vi) (intermediate care facility), 1630
subparagraph (viii) (intermediate care facility for individuals 1631
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with intellectual disabilities) and subparagraph (x) (psychiatric 1632
residential treatment facility) of Section 41-7-173(h) which is 1633
owned by the State of Mississippi and under the direction and 1634
control of the State Department of Mental Health, and the addition 1635
of new beds or the conversion of beds from one category to another 1636
in any such defined health care facility which is owned by the 1637
State of Mississippi and under the direction and control of the 1638
State Department of Mental Health, shall not require the issuance 1639
of a certificate of need under Section 41-7-171 et seq., 1640
notwithstanding any provision in Section 41-7-171 et seq. to the 1641
contrary. 1642
(12) The new construction, renovation or expansion of or 1643
addition to any veterans homes or domiciliaries for eligible 1644
veterans of the State of Mississippi as authorized under Section 1645
35-1-19 shall not require the issuance of a certificate of need, 1646
notwithstanding any provision in Section 41-7-171 et seq. to the 1647
contrary. 1648
(13) The repair or the rebuilding of an existing, operating 1649
health care facility that sustained significant damage from a 1650
natural disaster that occurred after April 15, 2014, in an area 1651
that is proclaimed a disaster area or subject to a state of 1652
emergency by the Governor or by the President of the United States 1653
shall be exempt from all of the requirements of the Mississippi 1654
Certificate of Need Law (Section 41-7-171 et seq.) and any and all 1655
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rules and regulations promulgated under that law, subject to the 1656
following conditions: 1657
(a) The repair or the rebuilding of any such damaged 1658
health care facility must be within one (1) mile of the 1659
pre-disaster location of the campus of the damaged health care 1660
facility, except that any temporary post-disaster health care 1661
facility operating location may be within five (5) miles of the 1662
pre-disaster location of the damaged health care facility; 1663
(b) The repair or the rebuilding of the damaged health 1664
care facility (i) does not increase or change the complement of 1665
its bed capacity that it had before the Governor's or the 1666
President's proclamation, (ii) does not increase or change its 1667
levels and types of health care services that it provided before 1668
the Governor's or the President's proclamation, and (iii) does not 1669
rebuild in a different county; however, this paragraph does not 1670
restrict or prevent a health care facility from decreasing its bed 1671
capacity that it had before the Governor's or the President's 1672
proclamation, or from decreasing the levels of or decreasing or 1673
eliminating the types of health care services that it provided 1674
before the Governor's or the President's proclamation, when the 1675
damaged health care facility is repaired or rebuilt; 1676
(c) The exemption from Certificate of Need Law provided 1677
under this subsection (13) is valid for only five (5) years from 1678
the date of the Governor's or the President's proclamation. If 1679
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actual construction has not begun within that five-year period, 1680
the exemption provided under this subsection is inapplicable; and 1681
(d) The Division of Health Facilities Licensure and 1682
Certification of the State Department of Health shall provide the 1683
same oversight for the repair or the rebuilding of the damaged 1684
health care facility that it provides to all health care facility 1685
construction projects in the state. 1686
For the purposes of this subsection (13), "significant 1687
damage" to a health care facility means damage to the health care 1688
facility requiring an expenditure of at least One Million Dollars 1689
($1,000,000.00). 1690
(14) The State Department of Health shall issue a 1691
certificate of need to any hospital which is currently licensed 1692
for two hundred fifty (250) or more acute care beds and is located 1693
in any general hospital service area not having a comprehensive 1694
cancer center, for the establishment and equipping of such a 1695
center which provides facilities and services for outpatient 1696
radiation oncology therapy, outpatient medical oncology therapy, 1697
and appropriate support services including the provision of 1698
radiation therapy services. The provisions of Section 41-7-193(1) 1699
regarding substantial compliance with the projection of need as 1700
reported in the current State Health Plan are waived for the 1701
purpose of this subsection. 1702
(15) The State Department of Health may authorize the 1703
transfer of hospital beds, not to exceed sixty (60) beds, from the 1704
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North Panola Community Hospital to the South Panola Community 1705
Hospital. The authorization for the transfer of those beds shall 1706
be exempt from the certificate of need review process. 1707
(16) The State Department of Health shall issue any 1708
certificates of need necessary for Mississippi State University 1709
and a public or private health care provider to jointly acquire 1710
and operate a linear accelerator and a magnetic resonance imaging 1711
unit. Those certificates of need shall cover all capital 1712
expenditures related to the project between Mississippi State 1713
University and the health care provider, including, but not 1714
limited to, the acquisition of the linear accelerator, the 1715
magnetic resonance imaging unit and other radiological modalities; 1716
the offering of linear accelerator and magnetic resonance imaging 1717
services; and the cost of construction of facilities in which to 1718
locate these services. The linear accelerator and the magnetic 1719
resonance imaging unit shall be (a) located in the City of 1720
Starkville, Oktibbeha County, Mississippi; (b) operated jointly by 1721
Mississippi State University and the public or private health care 1722
provider selected by Mississippi State University through a 1723
request for proposals (RFP) process in which Mississippi State 1724
University selects, and the Board of Trustees of State 1725
Institutions of Higher Learning approves, the health care provider 1726
that makes the best overall proposal; (c) available to Mississippi 1727
State University for research purposes two-thirds (2/3) of the 1728
time that the linear accelerator and magnetic resonance imaging 1729
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unit are operational; and (d) available to the public or private 1730
health care provider selected by Mississippi State University and 1731
approved by the Board of Trustees of State Institutions of Higher 1732
Learning one-third (1/3) of the time for clinical, diagnostic and 1733
treatment purposes. For purposes of this subsection, the 1734
provisions of Section 41-7-193(1) requiring substantial compliance 1735
with the projection of need as reported in the current State 1736
Health Plan are waived. 1737
(17) The State Department of Health shall issue a 1738
certificate of need for the construction of an acute care hospital 1739
in Kemper County, not to exceed twenty-five (25) beds, which shall 1740
be named the "John C. Stennis Memorial Hospital." In issuing the 1741
certificate of need under this subsection, the department shall 1742
give priority to a hospital located in Lauderdale County that has 1743
two hundred fifteen (215) beds. For purposes of this subsection, 1744
the provisions of Section 41-7-193(1) requiring substantial 1745
compliance with the projection of need as reported in the current 1746
State Health Plan and the provisions of Section 41-7-197 requiring 1747
a formal certificate of need hearing process are waived. There 1748
shall be no prohibition or restrictions on participation in the 1749
Medicaid program (Section 43-13-101 et seq.) for the person or 1750
entity receiving the certificate of need authorized under this 1751
subsection or for the beds constructed under the authority of that 1752
certificate of need. 1753
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(18) The planning, design, construction, renovation, 1754
addition, furnishing and equipping of a clinical research unit at 1755
any health care facility defined in Section 41-7-173(h) that is 1756
under the direction and control of the University of Mississippi 1757
Medical Center and located in Jackson, Mississippi, and the 1758
addition of new beds or the conversion of beds from one (1) 1759
category to another in any such clinical research unit, shall not 1760
require the issuance of a certificate of need under Section 1761
41-7-171 et seq., notwithstanding any provision in Section 1762
41-7-171 et seq. to the contrary. 1763
(19) [Repealed] 1764
(20) Nothing in this section or in any other provision of 1765
Section 41-7-171 et seq. shall prevent any nursing facility from 1766
designating an appropriate number of existing beds in the facility 1767
as beds for providing care exclusively to patients with 1768
Alzheimer's disease. 1769
(21) Nothing in this section or any other provision of 1770
Section 41-7-171 et seq. shall prevent any health care facility 1771
from the new construction, renovation, conversion or expansion of 1772
new beds in the facility designated as intensive care units, 1773
negative pressure rooms, or isolation rooms pursuant to the 1774
provisions of Sections 41-14-1 through 41-14-11, or Section 1775
41-14-31. For purposes of this subsection, the provisions of 1776
Section 41-7-193(1) requiring substantial compliance with the 1777
projection of need as reported in the current State Health Plan 1778
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and the provisions of Section 41-7-197 requiring a formal 1779
certificate of need hearing process are waived. 1780
SECTION 11. Section 41-7-193, Mississippi Code of 1972, is 1781
brought forward as follows: 1782
41-7-193. (1) No person may enter into any financing 1783
arrangement or commitment for financing a new institutional health 1784
service or any other project requiring a certificate of need 1785
unless such certificate has been granted for such purpose. A 1786
certificate of need shall not be granted or issued to any person 1787
for any proposal, cause or reason, unless the proposal has been 1788
reviewed for consistency with the specifications and the criteria 1789
established by the State Department of Health and substantially 1790
complies with the projection of need as reported in the state 1791
health plan in effect at the time the application for the proposal 1792
was submitted. 1793
(2) An application for a certificate of need for an 1794
institutional health service, medical equipment or any proposal 1795
requiring a certificate of need shall specify the time, within 1796
that granted, such shall be functional or operational according to 1797
a time schedule submitted with the application. Each certificate 1798
of need shall specify the maximum amount of capital expenditure 1799
that may be obligated. The State Department of Health shall 1800
periodically review the progress and time schedule of any person 1801
issued or granted a certificate of need for any purpose. 1802
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(3) An application for a certificate of need may be filed at 1803
any time with the department after the applicant has given the 1804
department fifteen (15) days' written notice of its intent to 1805
apply for a certificate of need. The department shall not delay 1806
review of an application. The department shall make its 1807
recommendation approving or disapproving a complete application 1808
within forty-five (45) days of the date the application was filed 1809
or within fifteen (15) days of receipt of any requested 1810
information, whichever is later, said request to be made by the 1811
department within fifteen (15) days of the filing of the 1812
application. 1813
SECTION 12. Section 41-7-195, Mississippi Code of 1972, is 1814
brought forward as follows: 1815
41-7-195. (1) A certificate of need shall be valid only for 1816
the defined scope, physical location and person named in the 1817
application. A certificate of need shall not be transferable or 1818
assignable nor shall a project or capital expenditure project be 1819
transferred from one person to another, except with the approval 1820
of the State Department of Health. A certificate of need shall be 1821
valid for the period of time specified therein. 1822
(2) A certificate of need shall be issued for a period of 1823
twelve (12) months, or such other lesser period as specified by 1824
the State Department of Health. 1825
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(3) The State Department of Health may define by regulation, 1826
not to exceed six (6) months, the time for which a certificate of 1827
need may be extended. 1828
(4) If commencement of construction or other preparation is 1829
not substantially undertaken during a valid certificate of need 1830
period or the State Department of Health determines the applicant 1831
is not making a good faith effort to obligate such approved 1832
expenditure, the State Department of Health shall have the right 1833
to withdraw, revoke or rescind the certificate. 1834
(5) The State Department of Health may approve or disapprove 1835
a proposal for a certificate of need as originally presented in 1836
final form, or it may approve a certificate of need by a 1837
modification, by reduction only, of such proposal provided the 1838
proponent agrees to such modification. 1839
SECTION 13. Section 41-7-197, Mississippi Code of 1972, is 1840
brought forward as follows: 1841
41-7-197. (1) The State Department of Health shall adopt 1842
and utilize procedures for conducting certificate of need reviews. 1843
Such procedures shall include, inter alia, the following: (a) 1844
written notification to the applicant; (b) written notification to 1845
health care facilities in the same health service area as the 1846
proposed service; (c) written notification to other persons who 1847
prior to the receipt of the application have filed a formal notice 1848
of intent to provide the proposed services in the same service 1849
area; and (d) notification to members of the public who reside in 1850
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the service area where the service is proposed, which may be 1851
provided through newspapers or public information channels. 1852
(2) All notices provided shall include, inter alia, the 1853
following: (a) the proposed schedule for the review; (b) written 1854
notification of the period within which a public hearing during 1855
the course of the review may be requested in writing by one or 1856
more affected persons, such request to be made within ten (10) 1857
days of the department's staff recommendation for approval or 1858
disapproval of an application; and (c) the manner in which 1859
notification will be provided of the time and place of any hearing 1860
so requested. Any such hearing shall be commenced by an 1861
independent hearing officer designated by the State Department of 1862
Health within sixty (60) days of the filing of the hearing request 1863
unless all parties to the hearing agree to extend the time for the 1864
commencement of the hearing. At such hearing, the hearing officer 1865
and any person affected by the proposal being reviewed may conduct 1866
reasonable questioning of persons who make relevant factual 1867
allegations concerning the proposal. The hearing officer shall 1868
require that all persons be sworn before they may offer any 1869
testimony at the hearing, and the hearing officer is authorized to 1870
administer oaths. Any person so choosing may be represented by 1871
counsel at the hearing. A record of the hearing shall be made, 1872
which shall consist of a transcript of all testimony received, all 1873
documents and other material introduced by any interested person, 1874
the staff report and recommendation and such other material as the 1875
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hearing officer considers relevant, including his own 1876
recommendation, which he shall make, after reviewing, studying and 1877
analyzing the evidence presented during the hearing, within a 1878
reasonable period of time after the hearing is closed, which in no 1879
event shall exceed forty-five (45) days. The completed record 1880
shall be certified to the State Health Officer, who shall consider 1881
only the record in making his decision, and shall not consider any 1882
evidence or material which is not included therein. All final 1883
decisions regarding the issuance of a certificate of need shall be 1884
made by the State Health Officer. The State Health Officer shall 1885
make his or her written findings and issue his or her order after 1886
reviewing said record. The findings and decision of the State 1887
Health Officer shall not be deferred to any later date. 1888
(3) Unless a hearing is held, if review by the State 1889
Department of Health concerning the issuance of a certificate of 1890
need is not complete with a final decision issued by the State 1891
Health Officer within the time specified by rule or regulation, 1892
which shall not exceed ninety (90) days from the filing of the 1893
application for a certificate of need, the proponent of the 1894
proposal may, within thirty (30) days after the expiration of the 1895
specified time for review, commence such legal action as is 1896
necessary, in the Chancery Court of the First Judicial District of 1897
Hinds County or in the chancery court of the county in which the 1898
service or facility is proposed to be provided, to compel the 1899
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State Health Officer to issue written findings and written order 1900
approving or disapproving the proposal in question. 1901
SECTION 14. Section 41-7-201, Mississippi Code of 1972, is 1902
brought forward as follows: 1903
41-7-201. (1) The provisions of this subsection (1) shall 1904
apply to any party appealing any final order of the State 1905
Department of Health pertaining to a certificate of need for a 1906
home health agency, as defined in Section 41-7-173(h)(ix): 1907
(a) In addition to other remedies now available at law 1908
or in equity, any party aggrieved by any such final order of the 1909
State Department of Health shall have the right of appeal to the 1910
Chancery Court of the First Judicial District of Hinds County, 1911
Mississippi, which appeal must be filed within thirty (30) days 1912
after the date of the final order. Provided, however, that any 1913
appeal of an order disapproving an application for such a 1914
certificate of need may be made to the chancery court of the 1915
county where the proposed construction, expansion or alteration 1916
was to be located or the new service or purpose of the capital 1917
expenditure was to be located. Such appeal must be filed in 1918
accordance with the thirty (30) days for filing as heretofore 1919
provided. Any appeal shall state briefly the nature of the 1920
proceedings before the State Department of Health and shall 1921
specify the order complained of. Any appeal shall state briefly 1922
the nature of the proceedings before the State Department of 1923
Health and shall specify the order complained of. Any person 1924
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whose rights may be materially affected by the action of the State 1925
Department of Health may appear and become a party or the court 1926
may, upon motion, order that any such person, organization or 1927
entity be joined as a necessary party. 1928
(b) Upon the filing of such an appeal, the clerk of the 1929
chancery court shall serve notice thereof upon the State 1930
Department of Health, whereupon the State Department of Health 1931
shall, within thirty (30) days or within such additional time as 1932
the court may by order for cause allow from the service of such 1933
notice, certify to the chancery court the record in the case, 1934
which records shall include a transcript of all testimony, 1935
together with all exhibits or copies thereof, all pleadings, 1936
proceedings, orders, findings and opinions entered in the case; 1937
provided, however, that the parties and the State Department of 1938
Health may stipulate that a specified portion only of the record 1939
shall be certified to the court as the record on appeal. 1940
(c) The court may dispose of the appeal in termtime or 1941
vacation and may sustain or dismiss the appeal, modify or vacate 1942
the order complained of, in whole or in part, as the case may be; 1943
but in case the order is wholly or partly vacated, the court may 1944
also, in its discretion, remand the matter to the State Department 1945
of Health for such further proceedings, not inconsistent with the 1946
court's order, as, in the opinion of the court, justice may 1947
require. The order shall not be vacated or set aside, either in 1948
whole or in part, except for errors of law, unless the court finds 1949
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that the order of the State Department of Health is not supported 1950
by substantial evidence, is contrary to the manifest weight of the 1951
evidence, is in excess of the statutory authority or jurisdiction 1952
of the State Department of Health, or violates any vested 1953
constitutional rights of any party involved in the appeal. 1954
Provided, however, an order of the chancery court reversing the 1955
denial of a certificate of need by the State Department of Health 1956
shall not entitle the applicant to effectuate the certificate of 1957
need until either: 1958
(i) Such order of the chancery court has become 1959
final and has not been appealed to the Supreme Court; or 1960
(ii) The Supreme Court has entered a final order 1961
affirming the chancery court. 1962
(d) Appeals in accordance with law may be had to the 1963
Supreme Court of the State of Mississippi from any final judgment 1964
of the chancery court. 1965
(2) The provisions of this subsection (2) shall apply to any 1966
party appealing any final order of the State Department of Health 1967
pertaining to a certificate of need for any health care facility 1968
as defined in Section 41-7-173(h), with the exception of any home 1969
health agency as defined in Section 41-7-173(h)(ix): 1970
(a) There shall be a "stay of proceedings" of any final 1971
order issued by the State Department of Health pertaining to the 1972
issuance of a certificate of need for the establishment, 1973
construction, expansion or replacement of a health care facility 1974
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for a period of thirty (30) days from the date of the order, if an 1975
existing provider located in the same service area where the 1976
health care facility is or will be located has requested a hearing 1977
during the course of review in opposition to the issuance of the 1978
certificate of need. The stay of proceedings shall expire at the 1979
termination of thirty (30) days; however, no construction, 1980
renovation or other capital expenditure that is the subject of the 1981
order shall be undertaken, no license to operate any facility that 1982
is the subject of the order shall be issued by the licensing 1983
agency, and no certification to participate in the Title XVII or 1984
Title XIX programs of the Social Security Act shall be granted, 1985
until all statutory appeals have been exhausted or the time for 1986
such appeals has expired. Notwithstanding the foregoing, the 1987
filing of an appeal from a final order of the State Department of 1988
Health or the chancery court for the issuance of a certificate of 1989
need shall not prevent the purchase of medical equipment or 1990
development or offering of institutional health services granted 1991
in a certificate of need issued by the State Department of Health. 1992
(b) In addition to other remedies now available at law 1993
or in equity, any party aggrieved by such final order of the State 1994
Department of Health shall have the right of appeal to the 1995
Chancery Court of the First Judicial District of Hinds County, 1996
Mississippi, which appeal must be filed within twenty (20) days 1997
after the date of the final order. Provided, however, that any 1998
appeal of an order disapproving an application for such a 1999
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certificate of need may be made to the chancery court of the 2000
county where the proposed construction, expansion or alteration 2001
was to be located or the new service or purpose of the capital 2002
expenditure was to be located. Such appeal must be filed in 2003
accordance with the twenty (20) days for filing as heretofore 2004
provided. Any appeal shall state briefly the nature of the 2005
proceedings before the State Department of Health and shall 2006
specify the order complained of. 2007
(c) Upon the filing of such an appeal, the clerk of the 2008
chancery court shall serve notice thereof upon the State 2009
Department of Health, whereupon the State Department of Health 2010
shall, within thirty (30) days of the date of the filing of the 2011
appeal, certify to the chancery court the record in the case, 2012
which records shall include a transcript of all testimony, 2013
together with all exhibits or copies thereof, all proceedings, 2014
orders, findings and opinions entered in the case; provided, 2015
however, that the parties and the State Department of Health may 2016
stipulate that a specified portion only of the record shall be 2017
certified to the court as the record on appeal. The chancery 2018
court shall give preference to any such appeal from a final order 2019
by the State Department of Health in a certificate of need 2020
proceeding, and shall render a final order regarding such appeal 2021
no later than one hundred twenty (120) days from the date of the 2022
final order by the State Department of Health. If the chancery 2023
court has not rendered a final order within this 2024
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one-hundred-twenty-day period, then the final order of the State 2025
Department of Health shall be deemed to have been affirmed by the 2026
chancery court, and any party to the appeal shall have the right 2027
to appeal from the chancery court to the Supreme Court on the 2028
record certified by the State Department of Health as otherwise 2029
provided in paragraph (g) of this subsection. In the event the 2030
chancery court has not rendered a final order within the 2031
one-hundred-twenty-day period and an appeal is made to the Supreme 2032
Court as provided herein, the Supreme Court shall remand the case 2033
to the chancery court to make an award of costs, fees, reasonable 2034
expenses and attorney's fees incurred in favor of appellee payable 2035
by the appellant(s) should the Supreme Court affirm the order of 2036
the State Department of Health. 2037
(d) Any appeal of a final order by the State Department 2038
of Health in a certificate of need proceeding shall require the 2039
giving of a bond by the appellant(s) sufficient to secure the 2040
appellee against the loss of costs, fees, expenses and attorney's 2041
fees incurred in defense of the appeal, approved by the chancery 2042
court within five (5) days of the date of filing the appeal. 2043
(e) No new or additional evidence shall be introduced 2044
in the chancery court but the case shall be determined upon the 2045
record certified to the court. 2046
(f) The court may dispose of the appeal in termtime or 2047
vacation and may sustain or dismiss the appeal, modify or vacate 2048
the order complained of in whole or in part and may make an award 2049
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of costs, fees, expenses and attorney's fees, as the case may be; 2050
but in case the order is wholly or partly vacated, the court may 2051
also, in its discretion, remand the matter to the State Department 2052
of Health for such further proceedings, not inconsistent with the 2053
court's order, as, in the opinion of the court, justice may 2054
require. The court, as part of the final order, shall make an 2055
award of costs, fees, reasonable expenses and attorney's fees 2056
incurred in favor of appellee payable by the appellant(s) should 2057
the court affirm the order of the State Department of Health. The 2058
order shall not be vacated or set aside, either in whole or in 2059
part, except for errors of law, unless the court finds that the 2060
order of the State Department of Health is not supported by 2061
substantial evidence, is contrary to the manifest weight of the 2062
evidence, is in excess of the statutory authority or jurisdiction 2063
of the State Department of Health, or violates any vested 2064
constitutional rights of any party involved in the appeal. 2065
Provided, however, an order of the chancery court reversing the 2066
denial of a certificate of need by the State Department of Health 2067
shall not entitle the applicant to effectuate the certificate of 2068
need until either: 2069
(i) Such order of the chancery court has become 2070
final and has not been appealed to the Supreme Court; or 2071
(ii) The Supreme Court has entered a final order 2072
affirming the chancery court. 2073
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(g) Appeals in accordance with law may be had to the 2074
Supreme Court of the State of Mississippi from any final judgment 2075
of the chancery court. The Supreme Court must give preference and 2076
conduct an expedited judicial review of an appeal of a final order 2077
of the chancery court relating to a certificate of need proceeding 2078
and must render a final order regarding the appeal no later than 2079
one hundred twenty (120) days from the date the final order by the 2080
chancery court is certified to the Supreme Court. The Supreme 2081
Court shall consider such appeals in an expeditious manner without 2082
regard to position on the court docket. 2083
(h) Within thirty (30) days from the date of a final 2084
order by the Supreme Court or a final order of the chancery court 2085
not appealed to the Supreme Court that modifies or wholly or 2086
partly vacates the final order of the State Department of Health 2087
granting a certificate of need, the State Department of Health 2088
shall issue another order in conformity with the final order of 2089
the Supreme Court, or the final order of the chancery court not 2090
appealed to the Supreme Court. 2091
SECTION 15. Section 41-7-202, Mississippi Code of 1972, is 2092
brought forward as follows: 2093
41-7-202. There shall be a "stay of proceedings" of any 2094
written decision of the State Department of Health pertaining to a 2095
certificate of need for a home health agency, as defined in 2096
Section 41-7-173(h)(ix), for a period of thirty (30) days from the 2097
date of that decision. The stay of proceedings shall expire at 2098
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the termination of thirty (30) days; however, no license to 2099
operate any such home health agency that is the subject of the 2100
decision shall be issued by the licensing agency, and no 2101
certification for such home health agency to participate in the 2102
Title XVIII or Title XIX programs of the Social Security Act shall 2103
be granted until all statutory appeals have been exhausted or the 2104
time for such appeals has expired. The stay of proceedings 2105
provided for in this section shall not apply to any party 2106
appealing any final order of the State Department of Health 2107
pertaining to a certificate of need for any health care facility 2108
as defined in Section 41-7-173(h), with the exception of any home 2109
health agency as defined in Section 41-7-173(h)(ix). 2110
SECTION 16. Section 41-7-205, Mississippi Code of 1972, is 2111
brought forward as follows: 2112
41-7-205. An applicant proposing a project which may be 2113
governed by the provisions of Section 41-7-171 et seq. may submit 2114
a determination of reviewability request to obtain a written 2115
declaratory opinion regarding the reviewability of the proposed 2116
project. If such opinion is sought, the requestor and department 2117
shall abide by the provisions of Section 25-43-2.103 as they are 2118
effective on July 1, 2016, except that the department's response 2119
shall be provided within forty-five (45) days of the request. 2120
SECTION 17. Section 41-7-207, Mississippi Code of 1972, is 2121
brought forward as follows: 2122
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41-7-207. Notwithstanding any other provisions of Sections 2123
41-7-171 through 41-7-209, except when the owner of a damaged 2124
health care facility applies to repair or rebuild the facility in 2125
accordance with the provisions of Section 41-7-191(13), when the 2126
need for any emergency replacement occurs, the certificate of need 2127
review process shall be expedited by promulgation of 2128
administrative procedures for expenditures necessary to alleviate 2129
an emergency condition and restore health care access. Emergency 2130
replacement means the replacement, and/or a necessary relocation, 2131
of all or the damaged part of the facilities or equipment the 2132
replacement of which is not exempt from certificate of need review 2133
under the medical equipment replacement exemption provided in 2134
Section 41-7-191(1)(f), without which the operation of the 2135
facility and the health and safety of patients would be 2136
immediately jeopardized and health care access would be denied to 2137
such patients. Expenditures under this section shall be limited 2138
to the replacement of those necessary facilities or equipment, the 2139
loss of which constitutes an emergency; however, in the case of 2140
the destruction or major damage to a health care facility, the 2141
department shall be authorized to issue a certificate of need to 2142
address the current and future health care needs of the community, 2143
including, but not limited to, the expansion of the health care 2144
facility and/or the relocation of the health care facility. In 2145
exercising the authority granted in this section, the department 2146
may waive all or part of the required certificate of need 2147
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application fee for any application filed under this section if 2148
the expenditure would create a further hardship or undue burden on 2149
the health care facility. 2150
SECTION 18. Section 41-7-209, Mississippi Code of 1972, is 2151
brought forward as follows: 2152
41-7-209. (1) Any person or entity violating the provisions 2153
of Sections 41-7-171 through 41-7-209, or regulations promulgated 2154
thereunder, by not obtaining a certificate of need, by deviating 2155
from the provisions of a certificate of need, or by refusing or 2156
failing to cooperate with the State Department of Health in its 2157
exercise or execution of its functions, responsibilities and 2158
powers shall be subject to the following: 2159
(a) Revocation of the license of a health care facility 2160
or a designated section, component or bed service thereof, or 2161
revocation of the license of any other person for which the State 2162
Department of Health is the licensing agency. If the State 2163
Department of Health lacks jurisdiction to revoke the license of 2164
such person, the State Health Officer shall recommend and show 2165
cause to the appropriate licensing agency that such license should 2166
be revoked; 2167
(b) Nonlicensure by the State Department of Health of a 2168
specific or designated bed service offered by the entity or 2169
person; 2170
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(c) Nonlicensure by the State Department of Health 2171
where infractions occur concerning the acquisition or control of 2172
major medical equipment; 2173
(d) Revoking, rescinding or withdrawing a certificate 2174
of need previously issued. 2175
(2) Violations of Sections 41-7-171 through 41-7-209, or any 2176
rules or regulations promulgated in furtherance thereof by intent, 2177
fraud, deceit, unlawful design, willful and/or deliberate 2178
misrepresentation, or by careless, negligent or incautious 2179
disregard for such statutes or rules and regulations, either by 2180
persons acting individually or in concert with others, shall 2181
constitute a misdemeanor and shall be punishable by a fine not to 2182
exceed One Thousand Dollars ($l,000.00) for each such offense. 2183
Each day of continuing violation shall be considered a separate 2184
offense. The venue for prosecution of any such violation shall be 2185
in any county of the state wherein any such violation, or portion 2186
thereof, occurred. 2187
(3) The Attorney General, upon certification by the State 2188
Health Officer, shall seek injunctive relief in a court of proper 2189
jurisdiction to prevent violations of Sections 41-7-171 through 2190
41-7-209 or any rules or regulations promulgated in furtherance of 2191
Sections 41-7-171 through 41-7-209 in cases where other 2192
administrative penalties and legal sanctions imposed have failed 2193
to prevent or cause a discontinuance of any such violation. 2194
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ST: Certificate of Need Law; bring forward
provisions of.
(4) Major third party payers, public or private, shall be 2195
notified of any violation or infraction under this section and 2196
shall be requested to take such appropriate punitive action as is 2197
provided by law. 2198
SECTION 19. This act shall take effect and be in force from 2199
and after July 1, 2026. 2200