§ 40:2116 — Facility need review

§2116. Facility need review
A. The Louisiana Department of Health shall implement a facility need review
process in accordance with the provisions of this Section. The department may institute
facility need review on licensing or certification to participate in the Title XIX program.
Except as provided in R.S. 40:2116.1, no healthcare provider shall be subject to facility need
review unless authorized by the legislature in Subsection B of this Section.
B. The following healthcare providers shall be subject to facility need review to
determine the need for a new or additional facility, provider, program, service, or bed:
(1) Home- and community-based service providers. However, certain services or
modules of a home- and community-based service provider may be excluded from the
facility need review process at the discretion of the secretary of the Louisiana Department
of Health.
(2) Hospice providers or inpatient hospice facilities.
(3) Pediatric day health care facilities.
(4) Behavioral health services providers that provide psychosocial rehabilitation or
community psychiatric support and treatment services.
(5) Opioid treatment programs licensed under a behavioral health services provider
license.
(6) Intermediate care facilities for people with developmental disabilities.
(7) Residential substance abuse treatment providers, except those that provide
services to women and adolescents.
C.(1) The secretary of the Louisiana Department of Health shall appoint a facility
need review committee, "FNR committee", that shall consist of the following members:
(a) The secretary of the Louisiana Department of Health or his designee.
(b) The assistant secretary of the office of behavioral health of the Louisiana
Department of Health or his designee.
(c) The assistant secretary of the office for citizens with developmental disabilities
of the Louisiana Department of Health or his designee.
(d) The assistant secretary of the office of aging and adult services of the Louisiana
Department of Health or his designee.
(e) The assistant secretary of the office of public health of the Louisiana Department
of Health or his designee.
(f) The Medicaid director of the Louisiana Department of Health or his designee.
(g) The Medicaid medical director of the Louisiana Department of Health or his
designee.
(2) In addition to the members set forth in Paragraph (1) of this Subsection, the
secretary may appoint additional members to the FNR committee when necessary in
reviewing applications of opioid treatment programs.
(3) No FNR committee member shall have a proprietary or financial interest in any
facility subject to facility need review.
(4) The FNR committee shall issue a decision on a facility need review application
within ninety days from receipt of the application or within the deadlines established in a
request for proposals or request for applications.
(5)(a) An applicant for facility need review shall provide all written application
materials and documentation as may be required by rule. The applicant may include any
additional written documentation or written evidence that supports the application for facility
need review.
(b) Unless otherwise stated in a specific request for proposals or request for
applications, the initial review and decision by the FNR committee shall consider all written
materials and documentation submitted by the applicant and shall be conducted as a paper
review.
(c)(i) Unless otherwise stated in a specific request for proposals or request for
applications, if the initial decision is to reject or deny the facility need review application,
then the applicant may request to supplement the application.
(ii) Upon receipt of additional documentation and evidence from the applicant, the
FNR committee shall conduct a supplemental application review and shall provide the
applicant an opportunity to meet with the FNR committee or its designees as part of the
review. The meeting may be conducted in person or, at the discretion of the Louisiana
Department of Health, through virtual means, including by telephone or virtual technology
that facilitates synchronous interaction.
(iii) After a meeting conducted pursuant to Item (ii) of this Subparagraph, the
applicant may submit additional documentation and evidence for consideration during the
supplemental application review.
(iv) The decision on the supplemental application review shall be made by the FNR
committee.
(d) If the facility need review application is rejected or denied after the supplemental
application review, the applicant may request an administrative appeal of the FNR
committee's decision with the division of administrative law in accordance with the
Administrative Procedure Act. The applicant is not required to request a supplemental
review and may elect to proceed directly to an administrative appeal.
(6) If the FNR committee approves the facility need review application, then the
applicant may proceed with seeking licensure or certification to participate in the Title XIX
program as applicable.
D. The department shall promulgate rules and regulations in accordance with the
Administrative Procedure Act to implement the provisions of this Section. The rules and
regulations shall include but not be limited to the following:
(1) Criteria for review of healthcare provider applications for facility need review,
including provisions for review pursuant to requests for proposals or requests for
applications.
(2) Criteria for review to determine if there is a need for a new or additional facility,
provider, program, service, or bed.
(3) Specific duties of the department and the FNR committee relative to review of
applications.
(4) Appropriate methodology for the collection of data necessary for the
administration of the program.
(5) Procedures for the FNR committee to approve, reject, or deny applications.
(6) Establishment of application fees.
(7) Procedures for a supplemental review of applications by the FNR committee.
(8) Procedures to request a fair hearing from a determination made by the FNR
committee.
(9) Provisions for judicial review from the decision rendered after an administrative
appeal.
(10) Establishment of services and modules of a home- and community-based
service provider that will be subject to the facility need review process.
(11) Provisions and procedures for the revocation, suspension, and expiration of
facility need review approvals.
E. No healthcare provider as provided for in Subsection B of this Section shall be
certified to participate in the Title XIX program without first obtaining facility need review
approval and complying with any and all licensing regulations promulgated by the
department. Any person establishing, managing, or operating a new facility, service, or bed
without the approval required by this Section shall be prohibited from participating in the
Title XIX program.

Legislative History

Acts 1990, No. 300, §1, eff. July 6, 1990; Acts 1995, No. 1236, §1, eff. July 1, 1996; Acts 1997, No. 583, §2, eff. July 3, 1997; Acts 1997, No. 1429, §1; Acts 1999, No. 336, §1; Acts 2000, 1st Ex. Sess., No. 5, §1, eff. April 12, 2000; Acts 2001, No. 336, §1, eff. June 7, 2001; Acts 2003, No. 900, §1; Acts 2003, No. 1191, §2, eff. July 3, 2003; Acts 2004, No. 184, §1; Acts 2005, No. 341, §1; Acts 2005, 1st Ex. Sess., No. 7, §1, eff. Nov. 23, 2005; Acts 2006, No. 163, §2; Acts 2006, No. 433, §1, eff. June 15, 2006; Acts 2006, No. 847, §1; Acts 2007, No. 165, §1, eff. June 27, 2007; Acts 2007, No. 253, §1, eff. July 6, 2007; Acts 2007, No. 378, §1, eff. July 10, 2007; S.C.R. No. 16, 2008 R.S.; Acts 2008, No. 187, §§1, 2, eff. June 13, 2008; Acts 2008, No. 341, §1, eff. June 21, 2008; Acts 2008, No. 393, §1, eff. June 21, 2008; Acts 2008, No. 412, §1, eff. June 21, 2008; Acts 2008, No. 795, §1; Acts 2009, No. 381, §2, eff. July 1, 2010; Acts 2010, No. 278, §1, eff. June 17, 2010; Acts 2011, No. 179, §1; Acts 2014, No. 811, §22, eff. June 23, 2014; Acts 2015, No. 139, §1, eff. June 19, 2015; Acts 2018, No. 206, §4; Acts 2021, No. 218, §1; Acts 2022, No. 531, §1; Acts 2024, No. 692, §1.