Section 325.9210. Finance Reviews; procedures.

(1) A person applying for a certificate of need for a project shall provide all of the following information as applicable:

(a)     Audited financial statements for existing providers including balance sheet, income statement, statement of cash flow, and footnotes to the financial statements.

(b)     For new providers, the department may accept evidence of secured capital funding or a letter of interest from a financial institution, if audited financial statements are not available.

(c)   Verification for all sources of funds dated within 30 days of submission of the application.

(d)    Signed vendor quote dated within 6 months of application submission for applications involving covered clinical equipment.

(e)   All applicable proposed lease and purchase agreements.

(f)    Designated funds specifying what type of funds are used (for example, cash, bond, etc.).

(g)    The book value for the assets of a licensed health facility or covered clinical service verifiable by an unrelated party; as determined by the department.

(2)       For construction projects, the applicant will competitively bid capital expenditures among qualified contractors or alternatively, the applicant is proposing an alternative to competitive bidding that will achieve substantially the same results as competitive bidding.

(3)   An applicant utilizing future operations (for example, capital/operating lease) as a source of funds shall provide the following, as applicable:

(a)    Current bank or financial institution statement or balance and dated within 30 days of submission of the application.

(b)   Third party verification of a bank loan, HELP loan, or other equivalent source of funding.

(4)     The department’s finance review shall be conducted using the completed application and any other information the department considers relevant to the decision and under all applicable provisions in the certificate of need review standards and the code, including information which becomes available or developments which occur after the date an application is deemed complete.

(5)    Before issuing a proposed decision, the bureau must notify an applicant of all information that the department relied upon in conducting the department's review. If the department relies on information, other than submitted by the applicant in its application, the bureau or department must cite in the proposed or final decision letter, as applicable, the information it relied upon. The department shall make this information available to the public upon request.

(6)    This rule does not limit the department's authority to consider all available financial information relevant to the department's review of an application.

History: 2014 AACS.