NAC439A.635. Effect on cost of health services.

     1. The applicant shall demonstrate that the proposed project will not have an unnecessarily adverse effect on the cost of health services to users or payors by showing that:

     (a) The proposed project will result in a significant savings in costs to users or payors without an adverse effect on the quality of care; or

     (b) If the proposed project will not result in a significant savings in costs to the user or payor for health services, the costs of the service are justified by:

          (1) A clinical or operational need;

          (2) A corresponding increase in the quality of care; or

          (3) A significant reduction in risks to the health of the patients to be served by the applicant.

     2. The factors to be considered in determining whether the applicant has met its burden of proof include:

     (a) The added costs to the applicant resulting from any proposed financing for the proposed project;

     (b) If the proposed project involves construction, remodeling or renovation, the relationship between the projected costs of that activity and the prevailing cost for similar construction, remodeling or renovation in the area;

     (c) The health or other benefits to be received by users compared to the cost to users or payors resulting from the proposed project; and

     (d) Whether alternative methods of providing the proposed service exist or are available which provide a greater benefit for the cost without adversely affecting the quality of care.

     (Added to NAC by Dep’t of Human Resources, eff. 9-4-84; A 3-6-86; 11-10-87)