News and Views

Public Act No. 03-275, An Act Concerning a Demonstration Project for Long-Term Acute Care Hospitals

 On July 9, 2003, Governor John G. Rowland signed into law Public Act 03-275, An Act Concerning a Demonstration Project for Long-Term Acute Care Hospitals.  Effective October 1, 2003, the Office of Health Care Access (“OHCA”), in consultation with the Departments of Public Health and Social Services, may authorize up to four demonstration projects allowing chronic disease hospitals to establish and operate new long-term acute care hospitals or satellite facilities.  The purpose of the four demonstration projects is to study the quality of service, patient outcomes and cost-effectiveness resulting from the operation of these hospitals or facilities.

The Hospitals or facilities operated as demonstration projects authorized by OHCA will serve patients who require long-term hospitalization in an acute care setting, need twenty-four hour on-site physician availability and are not suitable for placement in a skilled nursing facility.  New long-term acute care hospitals and satellite facilities may be eligible for operation as such projects, if they are (1) located within a licensed short-term acute care general hospital or children’s hospital, (2) under the common ownership and control of a chronic disease hospital, and (3) currently are, or will be, certified for Medicare participation as a long-term acute care hospital under Title XVIII of the Social Security Act. 

By no later than January 1, 2005, a chronic disease hospital may apply to OHCA for a Certificate of Need to conduct a demonstration project.  Each demonstration project authorized by OHCA in accordance with Public Act 03-275 shall collect and report data concerning the demonstration project’s impact on the quality of service, patient outcomes and cost-effectiveness.  The data collected will be reported in the manner prescribed by OHCA and will include (1) length of stay, (2) number of intensive care days per patient, (3) cost of stay, (4) type of discharge, and (5) any other data requested by OHCA.

Those acute care hospitals and chronic disease hospitals with questions regarding Public Act 03-275 or interested in submitting a letter of intent to apply for a Certificate of Need for a long-term acute care hospital demonstration project, should contact Susan Cole, Certificate of Need Supervisor, at OHCA at (860) 418-7001.

Public Act 03-0274, “An Act Concerning Outpatient Surgical Facilities”
The Act states, in part that:
Any Outpatient Surgical Facility currently in operation must provide satisfactory evidence to OHCA that it was in operation on or before July 1, 2003.
Any Outpatient Surgical Facility in development prior to July 1, 2003, may obtain a Determination from OHCA that a Certificate of Need is not required by providing satisfactory evidence that it commenced development prior to July 1, 2003.  Such Determination must be obtained from OHCA on or before July 1, 2003.
Otherwise, no entity, individual, firm, partnership, corporation, limited liability company or association, other than a hospital, shall individually or jointly establish or operate an Outpatient Surgical Facility in this state.
Form 2020B has been placed on OHCA’s Application and Forms pages to facilitate compliance with P.A. 03-0274.
If you are an Outpatient Surgical Facility in development please submit the form, accompanying documentation and the completed affidavit to OHCA as soon as possible, but not later than 10:00 AM on June 30, 2003.
If you are an Outpatient Surgical Facility in operation, please submit the above as soon as possible.
If you have any questions concerning the new law or OHCA’s process for compliance, please call (860) 418-7001.