CON update

ASHB1 included significant changes to the rules for moving beds under Certificate of Need (CON) rules.  Previously, beds could not be moved across county lines. ASHB1 included two separate provisions to allow bed movement. The first allows providers to move up to 30 beds from a contiguous county to an existing nursing facility; and the second allows the movement of beds from any county that is determined to have excess beds to a county in need of beds. The Ohio Department of Health’s (ODH) first bed-need determination was released April 1, 2010, with the application period opening July 1, 2010.  ODH has determined beds can be moved into 29 counties and out of 25 counties. The remaining 34 counties are ineligible to participate; however, ODH has been contacted by the Ohio Health Care Association (OHCA) who questioned some of the calculations. At this time, it is unknown if opportunities may exist in other counties. Franklin County showed the largest bed shortage (864 beds), while Cuyahoga County had the largest excess (1,721 beds). ODH has stated that applications under this section will be accepted from July 1, 2010 through July 30, 2010.  See below for the full results of the study and additional information regarding bed relocations.

The changes to the CON rules have led to a significant increase in application activity.  As a result of the increased activity, we expect to see more appeals and objections filed by affected providers.  Therefore, it is more important than ever to obtain legal and accounting advice prior to considering an activity that would require a CON application.

Please contact us if you are considering adding beds or opening a new facility.