Alaska Administrative Code › Title 7 - Health and Social Services › Part 1 - Administration › Chapter 07 - Certificate of Need › 7 AAC 07.010 - Expenditures to be included when determining whether a certificate of need is required

Current through May 31, 2024
(a) In determining the amount of an
				expenditure for an activity under
				AS
				18.07.031(a), a person shall
				include the cost for one, or a combination of two or more, of the following
				components, as applicable:
(1) site
				excavation;
(2) construction,
				demolition, or remodeling of a building;
(3) other site or facility
				development;
(4) purchase of
				equipment, a building, or other property;
(5) purchase of land that is to be used for
				the health care facility; the value of land purchased for future development of
				the facility will be considered at the time the future development is to occur,
				if the
(A) future development requires a
				certificate of need; and
(B) value
				of the land was not included in a previous certificate of need issued under
				this chapter for the facility;
(6) the value of land that is owned by the
				applicant and that is to be used for the health care facility, based on the
				value of the land at acquisition or the current appraised value of the land
				after deducting the cost of the appraisal, whichever value is less; the
				provisions of this paragraph do not apply
(A)
				to an expenditure that involves only remodeling of an existing facility unless
				the remodeling includes an expansion of the facility; or
(B) if the value of the land was included in
				a previous certificate of need issued under this chapter for the
				facility;
(7) the value
				of space that is owned by the applicant and that is to be used for the health
				care facility, based on the value of the square footage of the space if it were
				leased, using the average current market rate for similar space leased in the
				proposed service area or comparable space in a comparable service area; the
				provisions of this paragraph do not apply to an expenditure that involves only
				remodeling of an existing facility unless the remodeling includes an expansion
				of the facility;
(8) leasing of
				equipment or space occupied by the facility, based on
(A) the net present value of the lease; for
				purposes of this subparagraph, "net present value" means the total lease
				payments over the useful life of the asset, less the existing age of the asset,
				as set out in the 2008 edition of
Estimated Useful Lives of Depreciable
				Hospital Assets,
published by the American Hospital Association and
				adopted by reference;
(B) the total
				cost of any leasehold improvements; and
(C) the total cost of any fixtures or
				equipment purchased or leased without regard to depreciation;
(9) undertakings essential to a
				component listed in this subsection; those items include
(A) studies, surveys, designs, plans, working
				drawings, site acquisitions and preparation, financing costs, research,
				training, and consultant costs; and
(B) for purchase of equipment, the cost of
				shipping and installation in addition to undertakings listed in (A) of this
				paragraph;
(10)
				donations in kind or transfers to a health care facility, including land,
				buildings, equipment, furnishings, and fixtures, which if acquired directly by
				the facility would be included as an expenditure, valued at the fair market
				value of the asset at the time of its donation or transfer.