NAC439A.637. Appropriateness for the area to be served.

In determining whether the proposed project is appropriate for the area to be served, the Director will consider:

     1. The location of the proposed project, including:

     (a) The time for travel and distance to other facilities for required transfers of patients or transfers in the event of an emergency;

     (b) The distance and the time for travel required for the population to be served to reach the applicant’s facility and other facilities providing similar services; and

     (c) The nature of and requirements for zoning for the area surrounding the proposed location of the project.

     2. The effect of the proposed project on the cost and quality of care provided by the existing system of health care in the area, based upon the extent to which:

     (a) The proposed project is likely to stimulate competition which will result in a reduction in costs for the user or payor;

     (b) The proposed project is likely to increase costs to the user or payor through reductions in market shares for services if those reductions would increase costs per unit of service; and

     (c) The proposed project contains innovations or improvements in the delivery or financing of health services which will significantly reduce the cost of health care to the user or payor or enhance the quality of care.

     3. If the proposed project involves the relocation of a health facility or the relocation of an existing service to another health facility, whether the need of the population currently being served will continue to be met.

     4. Whether the proposed project is consistent with the existing system of health care, based upon:

     (a) The effect of the proposed project on the availability and the cost in the area of the required personnel; and

     (b) The extent to which the applicant will have adequate arrangements for referrals to and from other health facilities in the area which provide for:

          (1) Avoidance of unnecessary duplication of effort;

          (2) Regionalization of highly specialized health services;

          (3) Comprehensive and continuous care of patients; and

          (4) Communication and cooperation between related facilities or services.

     5. The quality of care provided by the applicant for any existing health facility or service owned or operated by the applicant, based upon:

     (a) Whether the applicant has had any adverse action taken against it with regard to any license or certificate held by the applicant and the results of that action;

     (b) The extent to which the applicant has previously provided similar health services; and

     (c) Any additional evidence in the record regarding the applicant’s quality of care.

     6. The extent to which equal access by all persons in the area to the applicant’s facility or services will be provided, based upon:

     (a) Whether any segment of the population in the area to be served will be denied access to health services similar to those proposed by the applicant as a result of the proposed project;

     (b) The extent to which the applicant will provide uncompensated care, exclusive of bad debt, and the effect of the proposed project on the cost to local and state governments and other facilities for providing care to indigents; and

     (c) The extent to which financial barriers to access by persons of low income, including any financial preconditions to providing service, will prevent those persons from obtaining needed health services.

     (Added to NAC by Dep’t of Human Resources, eff. 3-6-86; A 11-10-87; 10-14-97)