10A NCAC 14G .0103       CRITERIA FOR AN UNDERSERVED AREA EXEMPTION - NEW ENTITY

(a)  In order for the Department to determine that there is a demonstrated need in the county where the entity is proposed to be located for the designated health care services to be offered by the entity the Department must conclude that:

(1)           the service or services proposed are not provided in the county within 15 miles of the proposed site of the entity; or

(2)           any existing provider of the same service or services proposed by the new entity, located in the county or within 10 miles of the proposed site of the entity, is not able to provide services to all who require the service and is unwilling or unable to expand services in order to accommodate those in need of the service.  The application shall provide written confirmation from the existing provider acknowledging unmet need and unwillingness or inability to accommodate it.

(b)  In order for the Department to determine that alternative financing is not available for a proposed new entity the applicant shall provide all of the following:

(1)           when an applicant health care provider is proposing to invest in an entity which includes non-health care providers, documentation that the non-health care providers have applied for financing from at least three commercial lenders located in the county, except that if the county does not have three commercial lenders one or more of the three may be from outside the county, and that the commercial lenders have considered and rejected the application to finance the proposed new entity; and

(2)           documentation that the plan of finance proposed to include the applicant health care provider in an entity which includes non-health care providers has the applicant health care provider participating on essentially the same terms as those proposed to the commercial lenders referenced in Subparagraph (b)(1) of this Rule; and

(3)           documentation that any non health care providers who are proposed to be parties to the financing, are proposed to be participating under the same terms and conditions as that proposed for the health care providers; and

(4)           documentation that an advertisement at least 3 inches wide and 3 inches long has been placed in four successive Sunday editions of a regional daily newspaper by any proposed non-health care provider owners under the heading "Investment Opportunity" describing the type of investment available, and that no responses have been received within 30 days of the fourth advertisement or that interested parties have been unable or unwilling to provide financing under the same terms and conditions that are proposed for the health care provider investor.

 

History Note:        Authority G.S. 90-408;

Eff. April 1, 1995.