Oregon Administrative Rules › Chapter 333 - OREGON HEALTH AUTHORITY, PUBLIC HEALTH DIVISION › Division 580 - CERTIFICATE OF NEED APPLICATION INSTRUCTIONS AND FORMS › Section 333-580-0050 - Availability of Resources and Alternative Uses of Those Resources

Current through Register Vol. 63, No. 7, July 1, 2024
Applicants must provide a narrative discussion of each of the
				following:
(1) Criterion: Does the
			 proposed project represent the most effective and least costly alternative,
			 considering all appropriate and adequate ways of meeting the identified needs?
(a) The applicant must demonstrate that the
			 best price for the proposal has been sought and selected;
(b) The applicant must demonstrate that
			 proposed solutions to identified needs represent the best solution from among
			 reasonable alternatives:
(A) Internal
			 alternatives:
(i) The applicant must list the
			 major internal operational adjustments considered which could lower the cost
			 and improve the efficiencies of offering the beds, equipment or
			 service;
(ii) The applicant must
			 demonstrate that the alternative considered represents the best solution for
			 the patients, and discuss why other alternatives were rejected;
(iii) If the proposal is for an inpatient
			 service, whether new or expanded, applicant must demonstrate this method of
			 delivery is less costly than if done on an outpatient basis;
(iv) The applicant must demonstrate that the
			 selected architectural solution represents the most cost effective and
			 efficient alternative to solving the identified needs.
(B) External alternatives:
(i) If the proposed beds, equipment or
			 services are currently being offered in the service area, applicant must
			 demonstrate:
(I) Why approval of the
			 application will not constitute unnecessary duplication of services;
(II) Why the proposal is an efficient
			 solution to identified needs;
(III)
			 Why the proposal represents the most effective method of providing the
			 proposal; and
(IV) That the
			 applicant can provide this proposal at the same or lower cost to the patient
			 than is currently available.
(ii) If paragraphs (A)(i) to (A)(iv) of this
			 subsection cannot be demonstrated, the applicant must show that without the
			 proposal, the health of the service area population will be seriously
			 compromised.
(C) Less
			 costly alternatives of adequate quality:
(i)
			 If a less costly and adequately effective alternative for the proposal is
			 currently available in the area, the applicant must demonstrate why its
			 proposal is:
(I) Not an unnecessary
			 duplication; or
(II) A more
			 efficient solution to the identified needs.
(ii) Applicants must demonstrate that the
			 identified needs of the population to be served cannot be reasonably served
			 under current conditions, or by alternative types of service or equipment or
			 equal quality to the proposal. "Alternatives of adequate quality" does not
			 imply that they need be exactly like those being proposed, but only that they
			 meet identified needs at state approved levels.
(D) If there are competing applications for
			 the proposal, each applicant must demonstrate why theirs is the best solution,
			 and why a certificate of need should be granted them.