DAR File No. 42397

Health, Family Health and Preparedness, Licensing

Section R432-2-5

Requirements for a Satellite Service Operation

Notice of Proposed Rule

(Amendment)

DAR File No.: 42397
Filed: 12/18/2017 09:45:38 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to allow for healthcare corporations, that own more than one licensed hospital in Utah, to have up to two satellite freestanding emergency departments attached to one hospital, but not to exceed the number of licensed hospitals the healthcare corporation owns. The Health Facility Committee reviewed and approved this rule amendment on 11/08/2017.

Summary of the rule or change:

The purpose of this amendment is to allow for healthcare corporations, that own more than one licensed hospital in Utah, to have up to two satellite freestanding emergency departments attached to one hospital, but not to exceed the number of licensed hospitals the healthcare corporation owns.

Statutory or constitutional authorization for this rule:

• Title 26, Chapter 21

Anticipated cost or savings to:

the state budget:

State government hospital licensing process was thoroughly reviewed. This proposed rule amendment will not change how many total satellite emergency departments can be licensed in Utah, therefore, the proposed rule amendment is not expected to impact state revenues or expenditures.

local governments:

Local governments city business licensing requirements were considered. This proposed rule amendment will not change how many total satellite emergency departments can be licensed in Utah, therefore, the proposed rule is not expected to impact local government's revenues or expenditures.

small businesses:

After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to small businesses budgets because all licensed hospitals in Utah employ more than 50 people.

persons other than small businesses, businesses, or local governmental entities:

This rule amendment could lead to a benefit for healthcare corporations that own more than one licensed hospital as it may provide greater flexibility as to the placement of satellite emergency departments, however, with all the variables, this is an inestimable benefit. Individuals in need of emergency department services may benefit from having a satellite emergency department in their area. This possibly could lead to better outcomes from serious emergency health issues which may lead to lower health costs in the future, however, with all the variables, this is an inestimable benefit. There would be no anticipated increased cost for health insurance companies. Better outcomes from serious emergency health issues may lead to lower costs for health insurance companies in the future, however, with all the variables, this also is an inestimable benefit.

Compliance costs for affected persons:

After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to affected persons because this amendment does not add any compliance rules that would add any costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact to businesses.

Joseph K. Miner, MD, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Health
Family Health and Preparedness, Licensing
3760 S HIGHLAND DR
SALT LAKE CITY, UT 84106

Direct questions regarding this rule to:

• Joel Hoffman at the above address, by phone at 801-273-2804, by FAX at 801-274-0658, or by Internet E-mail at jhoffman@utah.gov
• Carmen Richins at the above address, by phone at 801-273-2802, by FAX at 801-274-0658, or by Internet E-mail at carmenrichins@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/14/2018

This rule may become effective on:

02/21/2018

Authorized by:

Joseph Miner, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2018	FY 2019	FY 2020
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Small Businesses

Small businesses (fewer than 50 employees): After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact to the small businesses budget because all licensed hospitals in Utah employ more than 50 people.

 

Appendix 3: Regulatory Impact to Non - Small Businesses

Businesses, individuals, local governments, and persons that are not small businesses: This rule amendment could lead to benefit for healthcare corporations that own more than one licensed hospital as it may provide greater flexibility as to the placement of satellite emergency departments however with all the variables this is an inestimable benefit. Individuals in need of emergency department services may benefit from having a satellite emergency department in their area. This possibly could lead to better outcomes from serious emergency health issues which may lead to lower health cost in future however with all the variables this is an inestimable benefit. There would be no anticipated increased cost for health insurance companies. Better outcomes from serious emergency health issues may lead to lower cost for health insurance companies in future, however, with all the variables, this also is an inestimable benefit.

 

Historically in Utah, there have only been 3 or 4 licensed satellite emergency departments and the long term plan for each was to eventually build a hospital and absorb the emergency department into the new hospital.

 

 

R432. Health, Family Health and Preparedness, Licensing.

R432-2. General Licensing Provisions.

R432-2-5. Requirements for a Satellite Service Operation.

(1) A "satellite operation" is a health care treatment service that:

(a) is administered by a parent facility within the scope of the parent facility's current license,

(b) is located further than 250 yards from the licensed facility or other areas determined by the department to be a part of the provider's campus,

(c) does not qualify for licensing under Section 26-21-2, and

(d) is approved by the Department for inclusion under the parent facility's license and identified as a remote service.

(2) A licensed health care facility that wishes to offer a satellite operation shall submit for Department review a program narrative and one set of construction drawings. The program narrative shall define at least the following:

(a) location of the remote facility (street address);

(b) capacity of the remote facility;

(c) license category of the parent facility;

(d) service to be provided at the remote facility (must be a service authorized under the parent facility license);

(e) ancillary administrative and support services to be provided at the remote facility; and

(f) International Building Code occupancy classification of the remote facility physical structure.

(3) Upon receipt of the satellite service program narrative and construction drawings, the Department shall make a determination of the applicable licensing requirements including the need for licensing the service. The Department shall verify at least the following items:

(a) There is only a single health care treatment service provided at the remote site and that it falls within the scope of the parent facility license;

(b) The remote facility physical structure complies with all construction codes appropriate for the service provided;

(c) All necessary administrative and support services for the specified treatment service are available, on a continuous basis during the hours of operation, to insure the health, safety, and welfare of the clients.

(4) If a facility qualifies as a single satellite service treatment center the Department shall issue a separate license identifying the facility as a "satellite service" of the licensed parent facility. This license shall be subject to all requirements set forth in R432-2 of the Health Facility Rules.

(5) A parent facility that wishes to offer more than one health care service at the same remote site shall either obtain a satellite service license for each service offered as described above or obtain a license for the remote complex as a free-standing health care facility.

(6) A satellite facility is not permitted within the confines of another licensed health care facility.

(7) A licensed hospital is limited to one emergency department satellite location. If a healthcare corporation owns and operates more than one hospital in the State of Utah;

(a) it may have up to two emergency department satellite locations associated with a licensed hospital; and

(b) the health care corporation's total number of emergency department satellite locations may not exceed the total number of licensed hospitals it owns and operates in the State of Utah.

 

KEY: health care facilities

Date of Enactment or Last Substantive Amendment: [2017]2018

Notice of Continuation: August 12, 2013

Authorizing, and Implemented or Interpreted Law: 26-21-9; 26-21-11; 26-21-12; 26-21-13