CERTIFICATE OF NEED NEWSLETTER

Volume No. 1 Cabinet for Health and Family Services January 20, 2005 Office of Certificate of Need 275 East Main Street Frankfort, KY 40621 Web Site: http://chs.ky.gov/cofn Phone: (502) 564-9589 Fax: (502) 564-0302

CON OFFICE HAS MOVED!!!

On Wednesday, January 19th, the Certificate of Need Office moved to the CHR Building, Third Floor (Mail Stop 3CB). Our telephone number and fax number have not changed. For those of you who come to our office on a regular basis, it may be a good idea to wait for an escort the first time you visit our new location. Thank you for your patience as we settle into our new location.

EMERGENCY CIRCUMSTANCES

Beginning with this Newsletter, projects which have requested to be recognized as emergency circumstances will be published under Chart D for informational purposes.

NOTICE OF PUBLIC HEARINGS

Monday, January 24, 2005 at 9:00 a.m. in the Administrative Hearings Branch Conference Room, Health Services Building, 1st Floor East, 275 East Main Street, Frankfort

Maxim Healthcare Services, AHB CON 04-063, (Louisville, Jefferson County) Pursuant to a Restraining Order entered by the Franklin Circuit Court, a due process hearing will be held for the limited and single purpose of determining whether emergency circumstances, as that term is defined at 900 KAR 6:050 Section 1(5), exist regarding the provision of Model II Waiver Services in Jefferson County

- -1- CON PUBLIC NOTICE 1/20/05 CHART A

Non-Sub Proposals Scheduled for Decision February 24, 2005

As of this date the Certificate of Need proposals listed below are officially scheduled for review. A decision granting or denying a certificate of need will be made by February 24, 2005. Applications proposing the same or similar types of services, equipment, or facilities affecting the same health service area are batched in the review cycle so they can be given comparative review, if applicable. The following projects are included in this batching cycle: A {Organ Transplantation, Magnetic Resonance Imaging, Megavoltage Radiation Equipment, Cardiac Catheterization, Open Heart Surgery and New Technological Developments}.

Any affected persons including parties who have submitted a letter of intent for an application which would provide similar types of services, facilities, or equipment affecting the same health service area, who desire a public hearing on a proposal must submit requests in writing to Certificate of Need Office, 275 East Main Street, HS1E-D, Frankfort, Kentucky 40621. All requests must be received within 10 days of this notice, or by January 30, 2005.

Affected persons will be notified of all scheduled hearings by mail except that the public and third party payors will be notified through public information channels.

Number Name Location Project Description Project Cost

There are no nonsubstantive review proposals on public notice

-3- CON PUBLIC NOTICE 1/20/05 CHART A

Formal Review Proposals Scheduled for Decision April 20, 2005

As of this date the Certificate of Need proposals listed below are officially scheduled for review. A decision granting or denying a certificate of need will be made by April 20, 2005. Applications proposing the same or similar types of services, equipment, or facilities affecting the same health service area are batched in the review cycle so they can be given comparative review, if applicable. The following projects are included in this batching cycle: A {Organ Transplantation, Magnetic Resonance Imaging, Megavoltage Radiation Equipment, Cardiac Catheterization, Open Heart Surgery and New Technological Developments}.

Any affected persons including parties who have submitted a letter of intent for an application which would provide similar types of services, facilities, or equipment affecting the same health service area, who desire a public hearing on a proposal must submit requests in writing to Certificate of Need Office, 275 East Main Street, HS1E-D, Frankfort, Kentucky 40621. All requests must be received within 15 days of this notice, or by February 4, 2005. Affected persons will be notified of all scheduled hearings by mail except that the public and third party payors will be notified through public information channels.

Number Name Location Project Description Project Cost

MRI

CON #038-01-527(11) PARKWAY REGIONAL Fulton, Fulton County Establish a hospital based magnetic $497,249.00 HOSPITAL resonance imaging (MRI) service. CON #030-03-3962(1) HEALTH PARK OUTPATIENT Owensboro, Daviess Establish a magnetic resonance imaging $1,724,000.00 DIAGNOSTIC CENTER County service (MRI) in an existing specialized medical technology services (SMTS). CON #002-04-276(7) THE MEDICAL CENTER AT Scottsville, Allen Establish a hospital based magnetic $1,332,820.00 SCOTTSVILLE County resonance imaging service CON #056-06-3963(1) NORTON DIAGNOSTIC CENTER Louisville, Jefferson Establish a specialized medical technology $2,569,023.00 AT OLD BROWNSBORO County service (SMTS) to provide magnetic CROSSING resonance imaging (MRI) services. CON #041-07-1544(4) ST. ELIZABETH MEDICAL Williamstown, Grant Establish a hospital based magnetic $2,200,000.00 CENTER – GRANT COUNTY County resonance imaging (MRI) service

- -3- NEWSLETTER Certificate of Need * Letters of Intent Received Chart B 12/11/04 – 1/15/05

Name and Location Project Description Date Received DAY HEALTH CARE PROGRAM QUEST ADULT DAY HEALTH CARE CENTER – Establish a day health care center 1/10/05 TAYLOR Campbellsville, Taylor County QUEST ADULT DAY HEALTH CARE CENTER – Establish a day health care center 1/10/05 RUSSELL Russell Springs, Russell County QUEST ADULT DAY HEALTH CARE CENTER – Establish a day health care center 1/10/05 PULASKI Somerset, Pulaski County QUEST ADULT DAY HEALTH CARE CENTER – Establish a day health care center 1/10/05 CUMBERLAND Burkesville, Cumberland County QUEST ADULT DAY HEALTH CARE CENTER – Establish a day health care center 1/10/05 CLINTON Albany, Clinton County QUEST ADULT DAY HEALTH CARE CENTER – Establish a day health care center 1/10/05 CASEY Liberty, Casey County HOME HEALTH AGENCY KENTUCKIANA NURSING SERVICE Establish a home health agency in 12/15/04 Jefferson County Louisville, Jefferson County PRIVATE DUTY NURSING KENTUCKIANA NURSING SERVICE Establish a private duty nursing service 12/15/04 in Jefferson County Louisville, Jefferson County REHABILITATION AGENCY FIBROMYALGIA WELLNESS CENTER, LLC Establish a rehabilitation agency 12/21/04 Louisville, Jefferson County

- -4- NEWSLETTER Certificate of Need * Applications Received Chart C 12/11/04 – 1/15/05

Name and Location Project Description Capital Cost Date Received DAY HEALTH CARE PROGRAM CON #056-06-3964(1) Relocate a licensed day health care program from $197,500.00 12/20/04 th BETTER DAY ADULT DAY 920 South 4 Street to 969 Cherokee Road. HEALTH CARE PROGRAM Louisville, Jefferson County REHABILITATION AGENCY CON #057-15-3339(3) Relocate a licensed rehabilitation agency from 977 $360,800.00 12/23/04 KORT PHYSICAL THERAPY – South Main Street to 102 Williams Road. NICHOLASVILLE Nicholasville, Jessamine County CON #056-06-3758(2) Relocate a licensed rehabilitation agency from 4130 $1,347,511.00 12/13/04 PHYSICAL THERAPY CLINIC Dutchmans Lane, Suite 200 to 215 North Central OF LOUISVILLE Avenue. Louisville, Jefferson County SPECIALIZED MEDICAL TECHNOLOGY SERVICE CON #056-06-3672(3) Relocate a licensed specialized medical technology $119,637.00 12/29/04 NORTON LOUISVILLE IMAGING service (MRI) from 9820 Third Street Road to 9409 SERVICES Cedar Look Drive Louisville, Jefferson County

- -5- NEWSLETTER Certificate of Need * Actions Since Last Newsletter Chart D 12/11/04 – 1/15/05 SHOW CAUSE HEARING Name and Location Project Description Capital Cost Action/Date ADVANCED MEDICAL Show cause hearing to determine NA Advanced Medical Imaging IMAGING CENTER, ASHLAND whether Advanced Medical Center, Ashland found to have AHB CON 04-058 SC Imaging Center, Ashland, has willfully established and established a health care facility, operated a health facility in as that term is defined at KRS Kentucky in violation of KRS 216B.015(12), without first 216B.010, et seq. and did not obtaining the necessary certificate qualify for the physicians’ office of need as required by KRS exemption contained in KRS 216B.061(1). 216B.020(2)(a). A fine of $1,000 each ordered for Advanced Medical Imaging Center, Ashland; The Cleveland Clinic Foundation; and Millennium Health Care Consulting pursuant to KRS 216B.990. 12/20/04

Reconsideration denied 1/6/05 ADVISORY OPINION HEARING THE ST. LUKE HOSPITALS Advisory opinion issued 4/6/04 NA Affirmed Opinion of Office of INC. stating that St. Luke Hospitals, Certificate of Need. 12/30/04 AO-01-04 Inc. may not provide percutaneous coronary angioplasty on an emergency basis to patients who present at the hospital in an emergency condition, due to the fact that the St. Luke Hospitals are easily within a reasonable transfer distance of a high volume open heart hospital. NONSUBSTANTIVE REVIEW APPROVAL CON #056-06-3758(2) Relocate a licensed rehabilitation agency $1,347,511.00 APPROVAL from 4130 Dutchmans Lane, Suite 200 to (12/29/04) PHYSICAL THERAPY CLINIC 215 North Central Avenue OF LOUISVILLE Louisville, Jefferson County CON #056-06-176(15) Replace MRI equipment. (emergency $2,469,838.00 APPROVAL circumstance) (12/17/04) UNIVERSITY OF LOUISVILLE HOSPITAL Louisville, Jefferson County

- -6- CON #056-06-3964(1) Relocate a licensed day health care $197,500.00 APPROVAL program from 920 South 4th Street to 969 (1/11/05) BETTER DAY ADULT DAY Cherokee Road. HEALTH CARE PROGRAM Louisville, Jefferson County CON #057-15-3339(3) Relocate a licensed rehabilitation agency $360,800.00 APPROVAL from 977 South Main Street to 102 Williams (1/13/05) KORT PHYSICAL THERAPY – Road NICHOLASVILLE Nicholasville, Jessamine EMERGENCY CIRCUMSTANCES INTERIM HEALTHCARE Provision of Model II Waiver services to one NA 1/l11/05 patient in McCreary County. Louisville, Jefferson County Application due upon expiration of moratorium. SAINT JOSEPH EAST Addition of four (4) level II neonatal beds. NA 1/11/05 HOSPITAL Letter of Intent due February 28, 2005. Lexington, Fayette County Application due March 30, 2005.

- -7- ADVISORY OPINION REPORT 12/11/04 – 1/15/05 Chart E Any affected persons who desire a public hearing on an advisory opinion must submit requests in writing to the Office of Certificate of Need, 275 East Main Street, HS1E-D, Frankfort, Kentucky 40621 within thirty (30) days of the date of this notice. Affected persons will be notified of all scheduled hearings by mail or through public information channels.

Number Facility/Service Proposal Decision and Date AO-06-04 CLEARVIEW IMAGING LLC To operate a nuclear imaging CON is not required pursuant to KRS camera and treadmill at a 216B.020(1) in that the facility freestanding facility and to expand provides diagnostic services only, services to include a mobile nuclear there are no review criteria in the imaging camera. State Health Plan for nuclear imaging medicine cameras and treadmills, and the cost of the camera and treadmill does not exceed the major medical equipment cost threshold. 12/17/04

- -8- REVOCATIONS

12/11/04 – 1/15/05 Chart F Name and Location Project Description Capital Action/Date Cost

THERE ARE NO REVOCATIONS TO REPORT

- -9-