                                 CODE OF VIRGINIA

DEMONSTRATION OF PUBLIC NEED REQUIRED; CRITERIA FOR DETERMINING NEED (§
32.1-102.3)

A. No certificate may be issued unless the Commissioner has determined that a
public need for the project has been demonstrated. If it is determined that a
public need exists for only a portion of a project, a certificate may be issued
for that portion and any appeal may be limited to the part of the decision with
which the appellant disagrees without affecting the remainder of the decision.
Any decision to issue or approve the issuance of a certificate shall be
consistent with the most recent applicable provisions of the State Health
Services Plan; however, if the Commissioner finds, upon presentation of
appropriate evidence, that the provisions of such plan are not relevant to a
rural locality&#8217;s needs, inaccurate, outdated, inadequate or otherwise
inapplicable, the Commissioner, consistent with such finding, may issue or
approve the issuance of a certificate and shall initiate procedures to make
appropriate amendments to such plan. In cases in which a provision of the State
Health Services Plan has been previously set aside by the Commissioner and
relevant amendments to the Plan have not yet taken effect, the
Commissioner&#8217;s decision shall be consistent with the applicable portions
of the State Health Services Plan that have not been set aside and the remaining
considerations in subsection B.

B. In determining whether a public need for a project has been demonstrated, the
Commissioner shall consider:

   1. The extent to which the proposed project will provide or increase access to
   health care services for people in the area to be served and the effects that
   the proposed project will have on access to health care services in areas
   having distinct and unique geographic, socioeconomic, cultural,
   transportation, and other barriers to access to health care;

   2. The extent to which the proposed project will meet the needs of people in
   the area to be served, as demonstrated by each of the following: (i) the level
   of community support for the proposed project demonstrated by people,
   businesses, and governmental leaders representing the area to be served; (ii)
   the availability of reasonable alternatives to the proposed project that would
   meet the needs of people in the area to be served in a less costly, more
   efficient, or more effective manner; (iii) any recommendation or report of the
   regional health planning agency regarding an application for a certificate
   that is required to be submitted to the Commissioner pursuant to subsection B
   of &#xA7; 32.1-102.6; (iv) any costs and benefits of the proposed project; (v)
   the financial accessibility of the proposed project to people in the area to
   be served, including indigent people; and (vi) at the discretion of the
   Commissioner, any other factors as may be relevant to the determination of
   public need for a proposed project;

   3. The extent to which the proposed project is consistent with the State
   Health Services Plan;

   4. The extent to which the proposed project fosters institutional competition
   that benefits the area to be served while improving access to essential health
   care services for all people in the area to be served;

   5. The relationship of the proposed project to the existing health care system
   of the area to be served, including the utilization and efficiency of existing
   services or facilities;

   6. The feasibility of the proposed project, including the financial benefits
   of the proposed project to the applicant, the cost of construction, the
   availability of financial and human resources, and the cost of capital;

   7. The extent to which the proposed project provides improvements or
   innovations in the financing and delivery of health care services, as
   demonstrated by (i) the introduction of new technology that promotes quality,
   cost effectiveness, or both in the delivery of health care services; (ii) the
   potential for provision of health care services on an outpatient basis; (iii)
   any cooperative efforts to meet regional health care needs; and (iv) at the
   discretion of the Commissioner, any other factors as may be appropriate; and

   8. In the case of a project proposed by or affecting a teaching hospital
   associated with a public institution of higher education or a medical school
   in the area to be served, (i) the unique research, training, and clinical
   mission of the teaching hospital or medical school and (ii) any contribution
   the teaching hospital or medical school may provide in the delivery,
   innovation, and improvement of health care services for citizens of the
   Commonwealth, including indigent or underserved populations.

HISTORY: 1982, c. 388; 1984, c. 740; 1993, c. 704; 1999, c. 926; 2000, c. 931;
2004, cc. 71, 95; 2008, c. 292; 2009, c. 175; 2020, cc. 227, 558, 1271.