Subdivision 1. Letter of intent; publication; acceptance of additional proposals. (a) An organization seeking to obtain a hospital license must submit a letter of intent to the commissioner, specifying the community in which the proposed hospital would be located and the number of beds proposed for the new hospital. When multiple letters of intent are received, the commissioner shall determine whether they constitute requests for separate projects or are competing proposals to serve the same or a similar service area.
(b) Upon receipt of a letter under paragraph (a), the commissioner shall publish a notice in the State Register that includes the information received from the organization under paragraph (a). The notice must state that another organization interested in seeking a hospital license to serve the same or a similar service area must notify the commissioner within 30 days.
(c) If no responses are received from additional organizations under paragraph (b), the commissioner shall notify the entity seeking a license that it is required to submit a plan under section 144.552 and shall notify the chairs of the house of representatives and senate committees having jurisdiction over health and human services policy and finance that the project is subject to sections 144.551 and 144.552.
Subd. 2. Needs assessment. (a) If one or more responses are received by the commissioner under subdivision 1, paragraph (b), the commissioner shall complete within 90 days a needs assessment to determine if a new hospital is needed in the proposed service area.
(b) The organizations that have filed or responded to a letter of intent under subdivision 1 shall provide to the commissioner within 30 days of a request from the commissioner a statement justifying the need for a new hospital in the service area and sufficient information, as determined by the commissioner, to allow the commissioner to determine the need for a new hospital. The information may include, but is not limited to, a demographic analysis of the proposed service area, the number of proposed beds, the types of hospital services to be provided, and distances and travel times to existing hospitals currently providing services in the service area.
(c) The commissioner shall make a determination of need for the new hospital. If the commissioner determines that a new hospital in the service area is not justified, the commissioner shall notify the applicants in writing, stating the reasons for the decision.
Subd. 3. Process when hospital need is determined. (a) If the commissioner determines that a new hospital is needed in the proposed service area, the commissioner shall notify the applicants of that finding and shall select the applicant determined under the process established in this subdivision to be best able to provide services consistent with the review criteria established in this subdivision.
(b) The commissioner shall:
(1) determine market-specific criteria that shall be used to evaluate all proposals. The criteria must include standards regarding:
(i) access to care;
(ii) quality of care;
(iii) cost of care; and
(iv) overall project feasibility;
(2) establish additional criteria at the commissioner's discretion. In establishing the criteria, the commissioner shall consider the need for:
(i) mental health services in the service area, including both inpatient and outpatient services for adults, adolescents, and children;
(ii) a significant commitment to providing uncompensated care, including discounts for uninsured patients and coordination with other providers of care to low-income uninsured persons; and
(iii) coordination with other hospitals so that specialized services are not unnecessarily duplicated and are provided in sufficient volume to ensure the maintenance of high-quality care; and
(3) define a service area for the proposed hospital. The service area shall consist of:
(i) in the 11-county metropolitan area, in St. Cloud, and in Duluth, the zip codes located within a 20-mile radius of the proposed new hospital location; and
(ii) in the remainder of the state, the zip codes within a 30-mile radius of the proposed new hospital location.
(c) If the plan is being submitted by an existing hospital, the commissioner shall also consider:
(1) the ability of the applicant to maintain the applicant's current level of community benefit as defined in section 144.699, subdivision 5, at the existing facility; and
(2) the impact on the workforce at the existing facility including the applicant's plan for:
(i) transitioning current workers to the new facility;
(ii) retraining and employment security for current workers; and
(iii) addressing the impact of layoffs at the existing facility on affected workers.
(d) The commissioner shall publish the criteria determined under paragraphs (b) and (c) in the State Register within 60 days of the determination under subdivision 2. Once published, the criteria shall not be modified with respect to the particular project and applicants to which they apply. The commissioner shall publish with the criteria guidelines for a proposal and submission review process.
(e) For 60 days after the publication under paragraph (d), the commissioner shall accept proposals to construct a hospital from organizations that have submitted a letter of intent under subdivision 1, paragraph (a), or have notified the commissioner under subdivision 1, paragraph (b). The proposal must include a plan for the new hospital and evidence of compliance with the criteria specified under paragraphs (b) and (c). Once submitted, the proposal may not be revised except:
(1) to submit corrections of material facts; or
(2) in response to a request from the commissioner to provide clarification or further information.
(f) The commissioner shall determine within 90 days of the deadline for applications under paragraph (e), which applicant has demonstrated that it is best able to provide services consistent with the published criteria. The commissioner shall make this determination by order following a hearing according to this paragraph. The hearing shall not constitute or be considered to be a contested case hearing under chapter 14 and shall be conducted solely under the procedures specified in this paragraph. The hearing shall commence upon at least 30 days' notice to the applicants by the commissioner. The hearing may be conducted by the commissioner or by a person designated by the commissioner. The designee may be an administrative law judge. The purpose of the hearing shall be to receive evidence to assist the commissioner in determining which applicant has demonstrated that it best meets the published criteria.
The parties to the hearing shall consist only of those applicants who have submitted a completed application. Each applicant shall have the right to be represented by counsel, to present evidence deemed relevant by the commissioner, and to examine and cross-examine witnesses. Persons who are not parties to the proceeding but who wish to present comments or submit information may do so in the manner determined by the commissioner or the commissioner's designee. Any person who is not a party shall have no right to examine or cross-examine witnesses. The commissioner may participate as an active finder of fact in the hearing and may ask questions to elicit information or clarify answers or responses.
(g) Prior to making a determination selecting an application, the commissioner shall hold a public hearing in the proposed hospital service area to accept comments from members of the public. The commissioner shall take this information into consideration in making the determination. The commissioner shall appoint an advisory committee, including legislators and local elected officials who represent the service area and outside experts to assist in the recommendation process. The legislative appointees shall include, at a minimum, the chairs of the senate and house of representatives committees with jurisdiction over health care policy. The commissioner shall issue an order selecting an application following the closing of the record of the hearing as determined by the hearing officer. The commissioner's order shall include a statement of the reasons the selected application best meets the published criteria.
(h) Within 30 days following the determination under paragraph (f), the commissioner shall recommend the selected proposal to the legislature.
(i) If an exception to the moratorium is approved under section 144.551 after a review under this section, the commissioner shall monitor the implementation of the exception up to completion of the construction project. Thirty days after completion of the construction project, the hospital shall submit to the commissioner a report on how the construction has met the provisions of the plan originally submitted under the public interest review process or a plan submitted pursuant to section 144.551, subdivision 1, paragraph (b), clause (20).
Subd. 4. Payment of commissioner's expenses. Notwithstanding section 16A.1283, applicants who are a party at any stage of the administrative process established in this section shall pay the cost of that stage of the process, as determined by the commissioner. The cost of the needs assessment, criteria development, and hearing shall be divided equally among the applicants. Money received by the commissioner under this subdivision is appropriated to the commissioner for the purpose of administering this section.
2006 c 249 s 3,6; 2007 c 147 art 9 s 15; art 10 s 16
Structure Minnesota Statutes
Chapter 144 — Department Of Health
Section 144.011 — Department Of Health.
Section 144.05 — General Duties Of Commissioner; Reports.
Section 144.0505 — Cooperation With Commissioner Of Human Services.
Section 144.051 — Data Relating To Licensed And Registered Persons.
Section 144.052 — Use Of Data.
Section 144.0525 — Epidemiologic Studies; Health Hazards; Health Surveillance.
Section 144.053 — Research Studies Confidential.
Section 144.0535 — Entry For Inspection.
Section 144.054 — Subpoena Power.
Section 144.055 — Home Safety Programs.
Section 144.056 — Plain Language In Written Materials.
Section 144.057 — Background Studies On Licensees And Other Personnel.
Section 144.058 — Interpreter Services Quality Initiative.
Section 144.059 — Palliative Care Advisory Council.
Section 144.06 — State Commissioner Of Health To Provide Instruction.
Section 144.061 — Early Dental Prevention Initiative.
Section 144.062 — Vaccine Cost Reduction Program.
Section 144.064 — The Vivian Act.
Section 144.065 — Prevention And Treatment Of Sexually Transmitted Infections.
Section 144.07 — Powers Of Commissioner.
Section 144.0721 — Assessments Of Care And Services To Nursing Home Residents.
Section 144.0724 — Resident Reimbursement Classification.
Section 144.074 — Funds Received From Other Sources.
Section 144.0742 — Contracts For Provision Of Public Health Services.
Section 144.0751 — Health Standards.
Section 144.077 — Mobile Health Care Providers.
Section 144.09 — Cooperation With Federal Authorities.
Section 144.092 — Coordinated Nutrition Data Collection.
Section 144.10 — Federal Aid For Maternal And Child Welfare Services.
Section 144.111 — Rules, Notice Published.
Section 144.12 — Regulation, Enforcement, Licenses, Fees.
Section 144.1201 — Definitions.
Section 144.1202 — United States Nuclear Regulatory Commission Agreement.
Section 144.1203 — Training; Rulemaking.
Section 144.1204 — Surety Requirements.
Section 144.1205 — Radioactive Material; Special Nuclear Material.
Section 144.121 — X-ray Machines; Other Sources Of Ionizing Radiation.
Section 144.1212 — Notice To Patient; Mammogram Results.
Section 144.1215 — Authorization To Use Handheld Dental X-ray Equipment.
Section 144.122 — License, Permit, And Survey Fees.
Section 144.1222 — Public Pools; Enclosed Sports Arenas.
Section 144.1225 — Advanced Diagnostic Imaging Services.
Section 144.123 — Fees For Diagnostic Laboratory Services; Exceptions.
Section 144.125 — Tests Of Infants For Heritable And Congenital Disorders.
Section 144.1251 — Newborn Screening For Critical Congenital Heart Disease (cchd).
Section 144.1255 — Heritable And Congenital Disorders.
Section 144.128 — Commissioner's Duties.
Section 144.14 — Quarantine Of Interstate Carriers.
Section 144.145 — Fluoridation Of Municipal Water Supplies.
Section 144.1461 — Dignity In Pregnancy And Childbirth.
Section 144.1464 — Summer Health Care Interns.
Section 144.1465 — Finding And Purpose.
Section 144.147 — Rural Hospital Planning And Transition Grant Program.
Section 144.1476 — Rural Pharmacy Planning And Transition Grant Program.
Section 144.148 — Rural Hospital Capital Improvement Grant Program.
Section 144.1481 — Rural Health Advisory Committee.
Section 144.1482 — Office Of Rural Health.
Section 144.1483 — Rural Health Initiatives.
Section 144.1485 — Database On Health Personnel.
Section 144.1492 — State Rural Health Network Reform Initiative.
Section 144.1493 — Nursing Grant Program.
Section 144.1501 — Health Professional Education Loan Forgiveness Program.
Section 144.1505 — Health Professionals Clinical Training Expansion Grant Program.
Section 144.1506 — Primary Care Residency Expansion Grant Program.
Section 144.1911 — International Medical Graduates Assistance Program.
Section 144.1912 — Greater Minnesota Family Medicine Residency Grant Program.
Section 144.193 — Inventory Of Biological And Health Data.
Section 144.212 — Definitions.
Section 144.213 — Office Of Vital Records.
Section 144.2131 — Security Of Vital Records System.
Section 144.215 — Birth Registration.
Section 144.2151 — Record Of Birth Resulting In Stillbirth.
Section 144.216 — Foundling Registration.
Section 144.217 — Delayed Records Of Birth.
Section 144.218 — Replacement Birth Records.
Section 144.2181 — Amendment And Correction Of Vital Records.
Section 144.221 — Death Registration.
Section 144.2215 — Minnesota Birth Defects Information System.
Section 144.2216 — Birth Defects Records And Reports Required.
Section 144.2217 — Classification Of Birth Defects Information.
Section 144.2218 — Transfers Of Information To Other Government Agencies.
Section 144.2219 — Transfers Of Information To Research Entities.
Section 144.222 — Reports Of Fetal Or Infant Death.
Section 144.223 — Report Of Marriage.
Section 144.225 — Disclosure Of Information From Vital Records.
Section 144.2252 — Access To Original Birth Record After Adoption.
Section 144.2255 — Certified Birth Record For Homeless Youth.
Section 144.29 — Health Records; Children Of School Age.
Section 144.291 — Minnesota Health Records Act.
Section 144.292 — Patient Rights.
Section 144.293 — Release Or Disclosure Of Health Records.
Section 144.294 — Records Relating To Mental Health.
Section 144.295 — Disclosure Of Health Records For External Research.
Section 144.296 — Copies Of Videotapes.
Section 144.297 — Independent Medical Examination.
Section 144.30 — Copies Of Records Evidence In Juvenile Court.
Section 144.32 — False Statements Cause For Discharge.
Section 144.334 — Right To Request Patient Information.
Section 144.3345 — Interconnected Electronic Health Record Grants.
Section 144.3351 — Immunization Data.
Section 144.3352 — Hepatitis B Maternal Carrier Data; Infant Immunization.
Section 144.336 — Registry Of Persons Typed For Human Leukocyte Antigens.
Section 144.34 — Investigation And Control Of Occupational Diseases.
Section 144.341 — Living Apart From Parents And Managing Financial Affairs.
Section 144.342 — Marriage Or Giving Birth, Consent For Health Service For Self Or Child.
Section 144.343 — Pregnancy, Venereal Disease, Alcohol Or Drug Abuse, Abortion.
Section 144.344 — Emergency Treatment.
Section 144.3441 — Hepatitis B Vaccination.
Section 144.345 — Representations To Persons Rendering Service.
Section 144.346 — Information To Parents.
Section 144.347 — Financial Responsibility.
Section 144.35 — Pollution Of Water.
Section 144.36 — Appeal To District Court.
Section 144.37 — Other Remedies Preserved.
Section 144.382 — Definitions.
Section 144.383 — Authority Of Commissioner.
Section 144.384 — Notice Of Violation.
Section 144.385 — Public Notice.
Section 144.3855 — Limitation.
Section 144.3872 — Female Genital Mutilation; Education And Outreach.
Section 144.391 — Public Policy.
Section 144.392 — Duties Of Commissioner.
Section 144.393 — Public Communications Program.
Section 144.394 — Health Promotion And Education.
Section 144.396 — Tobacco Use Prevention.
Section 144.397 — Statewide Tobacco Cessation Services.
Section 144.412 — Public Policy.
Section 144.413 — Definitions.
Section 144.414 — Prohibitions.
Section 144.416 — Responsibilities Of Proprietors.
Section 144.4165 — Tobacco Products Prohibited In Public Schools.
Section 144.4167 — Permitted Smoking.
Section 144.417 — Commissioner Of Health, Enforcement, Penalties.
Section 144.4172 — Definitions.
Section 144.4173 — Cause Of Action.
Section 144.4176 — Petition; Notice.
Section 144.4177 — Time Of Hearing And Duties Of Counsel.
Section 144.4178 — Criminal Immunity.
Section 144.4179 — Standard Of Proof; Evidence.
Section 144.4182 — Temporary Emergency Hold.
Section 144.4183 — Emergency Hold Hearing.
Section 144.4184 — Contact Data.
Section 144.4186 — Data Privacy.
Section 144.419 — Isolation And Quarantine Of Persons.
Section 144.4195 — Due Process For Isolation Or Quarantine Of Persons.
Section 144.4196 — Employee Protection.
Section 144.4197 — Emergency Vaccine Administration; Legend Drug.
Section 144.4198 — Mass Dispensing Under Authority Of Commissioner Of Health.
Section 144.4199 — Public Health Response Contingency Account.
Section 144.441 — Tuberculosis Screening In Schools.
Section 144.442 — Testing In School Clinics.
Section 144.445 — Tuberculosis Screening In Correctional Institutions.
Section 144.4803 — Definitions.
Section 144.4804 — Reporting Relating To Tuberculosis.
Section 144.4805 — Health Order; Rights Of Carrier And Respondent.
Section 144.4806 — Preventive Measures Under Health Order.
Section 144.4807 — Notice Of Obligation To Isolate Or Examine.
Section 144.4808 — Apprehend And Hold Order.
Section 144.4809 — Preliminary Hearing.
Section 144.4810 — Final Hearing.
Section 144.4811 — Periodic Review And Release From Detention.
Section 144.4812 — Costs Of Care.
Section 144.4813 — Data Privacy.
Section 144.49 — Violations; Penalties.
Section 144.492 — Definitions.
Section 144.494 — Designating Stroke Centers And Stroke Hospitals.
Section 144.4941 — St Segment Elevation Myocardial Infarction (stemi) Receiving Centers.
Section 144.495 — Formaldehyde Rules.
Section 144.496 — Minnesota Radon Awareness Act.
Section 144.4961 — Minnesota Radon Licensing Act.
Section 144.497 — St Elevation Myocardial Infarction.
Section 144.50 — Hospitals, Licenses; Definitions.
Section 144.51 — License Applications.
Section 144.55 — Licenses; Issuance, Suspension And Revocation.
Section 144.5509 — Radiation Therapy Facility Construction.
Section 144.551 — Hospital Construction Moratorium.
Section 144.552 — Public Interest Review.
Section 144.553 — Alternative Approval Process.
Section 144.554 — Health Facilities Construction Plan Submittal And Fees.
Section 144.561 — Description Of Certain Medical Facilities.
Section 144.562 — Swing Bed Approval; Issuance Of License Conditions.
Section 144.563 — Nursing Services Provided In A Hospital; Prohibited Practices.
Section 144.564 — Monitoring Of Subacute Or Transitional Care Services.
Section 144.565 — Diagnostic Imaging Facilities.
Section 144.566 — Violence Against Health Care Workers.
Section 144.572 — Institutions Excepted.
Section 144.573 — Pets In Certain Institutions.
Section 144.574 — Dangers Of Shaking Infants And Young Children.
Section 144.58 — Information, Confidential.
Section 144.581 — Hospital Authorities.
Section 144.585 — Methicillin-resistant Staphylococcus Aureus Control Programs.
Section 144.586 — Requirements For Certain Notices And Discharge Planning.
Section 144.591 — Disclosure Of Hospital Charges.
Section 144.602 — Definitions.
Section 144.603 — Statewide Trauma System Criteria.
Section 144.604 — Trauma Triage And Transportation.
Section 144.605 — Designating Trauma Hospitals.
Section 144.606 — Interhospital Transfers.
Section 144.6062 — Comprehensive Advanced Life Support.
Section 144.6071 — Trauma Registry.
Section 144.608 — Trauma Advisory Council.
Section 144.611 — Captioning Required.
Section 144.615 — Birth Centers.
Section 144.6501 — Nursing Home Admission Contracts.
Section 144.6502 — Electronic Monitoring In Certain Facilities.
Section 144.6503 — Facilities For Alzheimer's Disease Or Related Disorder.
Section 144.6505 — Subacute Care Waivers.
Section 144.651 — Health Care Bill Of Rights.
Section 144.6512 — Retaliation In Nursing Homes Prohibited.
Section 144.652 — Bill Of Rights Notice To Patient Or Resident; Violation.
Section 144.6521 — Disclosure Of Financial Interest.
Section 144.6522 — Designation Of A Caregiver.
Section 144.653 — Rules; Periodic Inspections; Enforcement.
Section 144.6535 — Variance Or Waiver.
Section 144.654 — Experts May Be Employed.
Section 144.655 — Program For Voluntary Medical Aid.
Section 144.656 — Employees To Be Compensated.
Section 144.657 — Volunteer Efforts Encouraged.
Section 144.658 — Epidemiologic Data Discovery.
Section 144.6581 — Determination Of Whether Data Identifies Individuals.
Section 144.6585 — Identification Of Health Care Providers.
Section 144.6586 — Notice Of Rights To Sexual Assault Victim.
Section 144.661 — Definitions.
Section 144.662 — Traumatic Brain Injury And Spinal Cord Injury Registry.
Section 144.663 — Duty To Report.
Section 144.664 — Duties Of Commissioner.
Section 144.665 — Traumatic Brain Injury And Spinal Cord Injury Data.
Section 144.671 — Cancer Surveillance System; Purpose.
Section 144.672 — Duties Of Commissioner; Rules.
Section 144.68 — Records And Reports Required.
Section 144.69 — Classification Of Data On Individuals.
Section 144.691 — Grievance Procedures.
Section 144.696 — Definitions.
Section 144.697 — General Powers And Duties Of State Commissioner Of Health.
Section 144.698 — Reporting Requirements.
Section 144.699 — Continuing Analysis.
Section 144.70 — Biennial Report.
Section 144.701 — Rate Disclosure.
Section 144.702 — Hospital And Outpatient Surgical Center Costs.
Section 144.7022 — Reporting Organizations; Penalty Orders.
Section 144.703 — Additional Powers.
Section 144.7055 — Staffing Plan Reports.
Section 144.7063 — Definitions.
Section 144.7065 — Facility Requirements To Report, Analyze, And Correct.
Section 144.7067 — Commissioner Duties And Responsibilities.
Section 144.7068 — Reports From Licensing Boards.
Section 144.7069 — Interstate Coordination; Reports.
Section 144.71 — Purpose; Definitions.
Section 144.73 — State Commissioner Of Health, Duties.
Section 144.74 — Rules, Standards.
Section 144.7401 — Definitions.
Section 144.7402 — Conditions For Applicability Of Procedures.
Section 144.7403 — Information Required To Be Given To Individuals.
Section 144.7404 — Disclosure Of Positive Blood-borne Pathogen Test Results.
Section 144.7405 — Consent Procedures Generally.
Section 144.7406 — Testing Of Available Blood.
Section 144.7407 — Blood Sample Collection For Testing.
Section 144.7408 — No Discrimination.
Section 144.7409 — Use Of Test Results.
Section 144.7411 — Test Information Confidentiality.
Section 144.7412 — Penalty For Unauthorized Release Of Information.
Section 144.7413 — Responsibility For Testing And Treatment; Costs.
Section 144.7414 — Protocols For Exposure To Blood-borne Pathogens.
Section 144.7415 — Penalties And Immunity.
Section 144.84 — Civil Service Classification.
Section 144.91 — Powers And Duties.
Section 144.92 — Grants Or Gifts.
Section 144.945 — Zika Preparedness And Response.
Section 144.95 — Mosquito Research Program.
Section 144.9501 — Definitions.
Section 144.9502 — Statewide Lead Surveillance System.
Section 144.9503 — Primary Prevention.
Section 144.9504 — Secondary Prevention.
Section 144.9505 — Credentialing Of Lead Firms And Professionals.
Section 144.9507 — Lead-related Funding.
Section 144.9509 — Enforcement.
Section 144.9512 — Lead Abatement Program.
Section 144.9513 — Healthy Housing Grants.
Section 144.966 — Early Hearing Detection And Intervention Program.
Section 144.98 — Accreditation Of Environmental Laboratories.
Section 144.989 — Title; Citation.
Section 144.991 — Administrative Penalty Order Procedure.
Section 144.992 — False Information.
Section 144.993 — Recovery Of Litigation Costs And Expenses.
Section 144.995 — Definitions; Environmental Health Tracking And Biomonitoring.
Section 144.996 — Environmental Health Tracking; Biomonitoring.
Section 144.997 — Biomonitoring Pilot Program.
Section 144.998 — Environmental Health Tracking And Biomonitoring Advisory Panel.