§323D-43  Certificates of need.  (a)  No person, public or private, nonprofit or for profit, shall:

     (1)  Construct, expand, alter, convert, develop, initiate, or modify a health care facility or health care services in the State that requires a total capital expenditure in excess of the expenditure minimum; or

     (2)  Substantially modify or increase the scope or type of health service rendered; or

     (3)  Increase, decrease, or change the class of usage of the bed complement of a health care facility, or relocate beds from one physical facility or site to another,

Terms Used In Hawaii Revised Statutes 323D-43

  • Capital expenditure: means any purchase or transfer of money or anything of value or enforceable promise or agreement to purchase or transfer money or anything of value incurred by or in behalf of any person for construction, expansion, alteration, conversion, development, initiation, or modification as defined in this section. See Hawaii Revised Statutes 323D-2
  • Certificate of need: means an authorization, when required pursuant to § 323D-43, to construct, expand, alter, or convert a health care facility or to initiate, expand, develop, or modify a health care service. See Hawaii Revised Statutes 323D-2
  • Expenditure minimum: means $4,000,000 for capital expenditures, $1,000,000 for new or replacement medical equipment and $400,000 for used medical equipment. See Hawaii Revised Statutes 323D-2
  • Health: includes physical and mental health. See Hawaii Revised Statutes 323D-2
  • health care services: means the provision of services in an assisted living facility that assists the resident in achieving and maintaining the highest state of positive well-being (i. See Hawaii Revised Statutes 323D-2
  • modify: includes the erection, building, reconstruction, modernization, improvement, purchase, acquisition, or establishment of a health care facility or health care service; the purchase or acquisition of equipment attendant to the delivery of health care service and the instruction or supervision therefor; the arrangement or commitment for financing the offering or development of a health care facility or health care service; any obligation for a capital expenditure by a health care facility; and studies, surveys, designs, plans, working drawings, specifications, procedures, and other actions necessary for any such undertaking, which will:

         (1)  Result in a total capital expenditure in excess of the expenditure minimum,

         (2)  Substantially modify, decrease, or increase the scope or type of health service rendered, or

         (3)  Increase, decrease, or change the class of usage of the bed complement of a health care facility. See Hawaii Revised Statutes 323D-2

  • Person: means an individual or a natural person, a trust or estate, a society, a firm, an assembly, a partnership, a corporation, a professional corporation, an association, the State, any political subdivision of the State, a county, a state agency or any instrumentality of the State, a county agency or any instrumentality of a county. See Hawaii Revised Statutes 323D-2
  • State agency: means the state health planning and development agency established in § 323D-11. See Hawaii Revised Statutes 323D-2
  • State health services and facilities plan: means the comprehensive plan for the economical delivery of health services in the State prepared by the statewide council. See Hawaii Revised Statutes 323D-2

unless a certificate of need therefor has first been issued by the state agency.

     (b)  No certificate of need shall be issued unless the state agency has determined that:

     (1)  There is a public need for the facility or the service; and

     (2)  The cost of the facility or service will not be unreasonable in the light of the benefits it will provide and its impact on health care costs.

     (c)  The state agency may adopt criteria for certificate of need review which are consistent with this section.  Such criteria may include but are not limited to need, cost, quality, accessibility, availability, and acceptability.

     Each decision of the state agency to issue a certificate of need shall, except in an emergency situation that poses a threat to public health, be consistent with the state health services and facilities plan in effect under § 323D-15.  Each certificate of need issued shall be valid for a period of one year from the date of issuance unless the period is extended for good cause by the state agency and expenditures for the project shall not exceed the maximum amount of the expenditures approved in the certificate of need.