South Carolina General Assembly
104th Session, 1981-1982

Bill 2366


                    Current Status

Bill Number:               2366
Ratification Number:       35
Act Number                 16
Introducing Body:          House
Subject:                   Acquisition of major medical
                           equipment
View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A16, R35, H2366)

AN ACT TO AMEND SECTIONS 44-7-120, 44-7-130, AND 44-7-320, ALL AS AMENDED, AND SECTIONS 44-7-375 AND 44-7-376, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE STATE HOSPITAL CONSTRUCTION AND FRANCHISING ACT, SO AS TO FURTHER DEFINE THE PURPOSES OF THE ACT, CHANGE THE DEFINITION OF "HEALTH CARE FACILITY" AND "AFFECTED PERSONS", FURTHER PROVIDE FOR FRANCHISING APPLICATIONS AND CERTIFICATES OF NEED FOR HEALTH CARE FACILITIES, PROVIDE FOR A REVIEW OF DECISIONS RELATING TO FRANCHISING PURSUANT TO THE ADMINISTRATIVE PROCEDURES ACT UPON REQUEST OF AN AGGRIEVED PARTY OR THE BOARD OF A HEALTH SYSTEMS AGENCY; AND TO AMEND CHAPTER 7 OF TITLE 44 BY ADDING SECTION 44-7-377 SO AS TO PROVIDE FOR JUDICIAL REVIEW OF ADMINISTRATIVE DECISIONS RELATING TO CERTIFICATES OF NEED DEEMED BY ,A HEALTH SYSTEMS AGENCY TO BE INCONSISTENT WITH ITS RECOMMENDATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Acquisition of major medical equipment

SECTION 1. Section 44-7-120 of the 1976 Code as last amended by Act 51 of 1979 is further amended by adding:

"(e) To require prior to any person entering into a contractual arrangement to acquire major medical equipment not owned by or located in a health care facility that such person notify the state agency and appropriate health systems agency in accordance with procedures set out in regulations; to require any person to obtain a Certificate of Need to acquire major medical equipment of the type described, if such equipment is to serve inpatients of a health care facility or if such person has failed to notify the department as herein required. This does not apply to major medical equipment used for in patients on a temporary basis as defined by regulations."

Definitions

SECTION 2. Section 44-7-130 of the 1976 Code as last amended by Act 51 of 1979 is further amended by striking item (9) and inserting:

"(9) 'Health care facility' shall include hospitals, psychiatric hospitals, tuberculosis hospitals, nursing care facilities, intermediate care facilities, kidney disease treatment centers, including free standing hemodialysis centers, ambulatory surgical facilities, rehabilitation facilities, health maintenance organizations except as exempted by regulation, and any other project for which certificate of need review is required under the federal act.

(10) 'Affected persons' includes the applicant; the health systems agency for the health service area in which the proposed project is to be located; health systems agencies serving contiguous health service areas or located within the same standard metropolitan statistical area; any person residing within the geographic area served or to be served by the applicant; any person who regularly uses health maintenance organizations (HMOs) located in the health service area in which the project is proposed to be located which provide services similar to the services of the facility under review; health care facilities and HMOs which, prior to receipt by the agency of the proposal being reviewed, have formally indicated an intention to provide similar services in the future; third party payers who reimburse health care facilities for services in the health service area in which the project is proposed to be located; and any agency which establishes rates for health care facilities or HMOs located in the health service area in which the project is proposed to be located."

Application of section

SECTION 3. Section 44-7-320 of the 1976 Code as last amended by Act 51 of 1979 is further amended to read:

"Section 44-7-320. This section shall apply to a 'health care facility' as defined in this article. A franchising application shall be made to the department and appropriate health systems agency. As a minimum, franchising applications shall contain evidence of ability to conform to the lawfully required standards, rules and regulations established by the department. Upon receipt of a franchising application, the department shall issue a certificate of need provided that the project will meet the public needs of the community where it is to be located and other criteria developed by the state health planning development agency. The certificate of need must specify a maximum capital expenditure and if such expenditure is exceeded further review may be required as set forth in regulations. A certificate of need may be withdrawn if the holder of such certificate has failed to make substantial progress. The controlling interest in any health care facility shall not be sold, leased, or disposed of by comparable arrangement without prior receipt of a Certificate of Need issued by the department. The controlling interest in a Certificate of Need is nontransferable. The controlling interest in a Certificate of Need, or rights there under, shall not be sold, assigned, leased, transferred, mortgaged, pledged or hypothecated by the sale of stock or otherwise. Any attempted transfer of this sort shall result in the immediate voidance of the certificate. This section shall not apply to the offices of licensed private practitioners whether for individual or group practice except as provided in Section 44-7-120(e)."

Decision must be administratively reviewed

SECTION 4. Section 44-7-375 added by Act 51 of 1979 is amended to read:

"Section 44-7-375. Upon a written request of any affected person within thirty days of the department's decision to approve, disapprove, or withdraw a Certificate of Need, the decision must be administratively reviewed by the Board of Health and Environmental Control under the State Administrative Procedures Act."

Written notice required

SECTION 5. Section 44-7-376 added by Act 51 of 1979 is amended to read:

"Section 44-7-376. Should the department make a decision which is inconsistent with the recommendation made with respect thereto by the health systems agency making such recommendation, the department shall submit to such health systems agency a written notice of the reasons for the inconsistency. The decision of the department shall become final thirty days after the mailing of such notice, unless the board of the health systems agency requests the decision be reviewed administratively under the State Administrative Procedures Act. Such review shall be before the Board of Health and Environmental Control."

Judicial review may be obtained

SECTION 6. Chapter 7 of Title 44 of the 1976 Code is amended by adding:

"Section 44-7-377. After a Certificate of Need decision is made and an administrative review is completed, the health systems agency, if the decision is inconsistent with a recommendation made by that health systems agency, and any person adversely affected, as defined by regulations, may obtain judicial review of the decision in the appropriate state court pursuant to the Administrative Procedures Act. The decision of the state agency shall be affirmed upon such review unless it is found to be arbitrary or capricious or not made in compliance with applicable law."

Time effective

SECTION 7. This act shall take effect upon approval by the Governor.