2009 North Carolina Code
Chapter 131E - Health Care Facilities and Services.
§ 131E-184. Exemptions from review.

§ 131E‑184.  Exemptions from review.

(a)        Except as provided in subsection (b), the Department shall exempt from certificate of need review a new institutional health service if it receives prior written notice from the entity proposing the new institutional health service, which notice includes an explanation of why the new institutional health service is required, for any of the following:

(1)        To eliminate or prevent imminent safety hazards as defined in federal, State, or local fire, building, or life safety codes or regulations.

(1a)      To comply with State licensure standards.

(1b)      To comply with accreditation or certification standards which must be met to receive reimbursement under Title XVIII of the Social Security Act or payments under a State plan for medical assistance approved under Title XIX of that act.

(2)        Repealed by Session Laws 1987, c. 511, s. 1.

(3)        To provide data processing equipment.

(4)        To provide parking, heating or cooling systems, elevators, or other basic plant or mechanical improvements, unless these activities are integral portions of a project that involves the construction of a new health service facility or portion thereof and that is subject to certificate of need review.

(5)        To replace or repair facilities destroyed or damaged by accident or natural disaster.

(6)        To provide any nonhealth service facility or service.

(7)        To provide replacement equipment.

(8)        To acquire an existing health service facility, including equipment owned by the health service facility at the time of acquisition.

(9)        To develop or acquire a physician office building regardless of cost, unless a new institutional health service other than defined in G.S. 131E‑176(16)b. is offered or developed in the building.

(b)        Those portions of a proposed project which are not proposed for one or more of the purposes under subsection (a) of this section are subject to certificate of need review, if these non‑exempt portions of the project are new institutional health services under G.S. 131E‑176(16).

(c)        The Department shall exempt from certificate of need review any conversion of existing acute care beds to psychiatric beds provided:

(1)        The hospital proposing the conversion has executed a contract with the Department's Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and/or one or more of the Area Mental Health, Developmental Disabilities, and Substance Abuse Authorities to provide psychiatric beds to patients referred by the contracting agency or agencies; and

(2)        The total number of beds to be converted shall not be more than twice the number of beds for which the contract pursuant to subdivision (1) of this subsection shall provide.

(d)        In accordance with, and subject to the limitations of G.S. 148‑19.1, the Department shall exempt from certificate of need review the construction and operation of a new chemical dependency or substance abuse facility for the purpose of providing inpatient chemical dependency or substance abuse services solely to inmates of the Department of Correction. If an inpatient chemical dependency or substance abuse facility provides services both to inmates of the Department of Correction and to members of the general public, only the portion of the facility that serves inmates shall be exempt from certificate of need review.

(e)        The Department shall exempt from certificate of need review a capital expenditure that exceeds the two million dollar ($2,000,000) threshold set forth in G.S. 131E‑176(16)b. if all of the following conditions are met:

(1)        The proposed capital expenditure would:

a.         Be used solely for the purpose of renovating, replacing on the same site, or expanding an existing:

1.         Nursing home facility,

2.         Adult care home facility, or

3.         Intermediate care facility for the mentally retarded; and

b.         Not result in a change in bed capacity, as defined in G.S. 131E‑176(5), or the addition of a health service facility or any other new institutional health service other than that allowed in G.S. 131E‑176(16)b.

(2)        The entity proposing to incur the capital expenditure provides prior written notice to the Department, which notice includes documentation that demonstrates that the proposed capital expenditure would be used for one or more of the following purposes:

a.         Conversion of semiprivate resident rooms to private rooms.

b.         Providing innovative, homelike residential dining spaces, such as cafes, kitchenettes, or private dining areas to accommodate residents and their families or visitors.

c.         Renovating, replacing, or expanding residential living or common areas to improve the quality of life of residents.  (1983, c. 775, s. 1; 1987, c. 511, s. 1; 1991 (Reg. Sess., 1992), c. 1030, s. 37; 1993, c. 7, s. 7; 2001‑424, s. 25.19(c); 2002‑159, s. 41; 2009‑145, s. 1; 2009‑487, s. 3.)