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New Jersey Hospital Certificate of Need Application: Project Costs and Requirements, Slides of Construction

The requirements and procedures for submitting a Certificate of Need application for hospital-related projects in New Jersey. It includes information on submission process, filing fees, completeness requirements, and narrative section instructions. The document also covers licensing, financial, and construction requirements.

What you will learn

  • What is the submission process for a Certificate of Need application for hospital-related projects in New Jersey?
  • What are the filing fees for a Certificate of Need application for hospital-related projects in New Jersey?

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2021/2022

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CN-3 (Instructions)
NOV 16 Page 1 of 6 Pages.
New Jersey Department of Health
CERTIFICATE OF NEED APPLICATIONS
FOR HOSPITAL-RELATED PROJECTS
_________________________________________________________________________________________________________
SECTION I. GENERAL REQUIREMENTS
1. CERTIFICATE OF NEED
A. PRE-SUBMISSION
Prior to the preparation of the application materials, it is strongly recommended that the applicant discuss the proposed
project with the local advisory board in the service area presently served or anticipated and staff of the New Jersey
Department of Health.
B. SUBMISSION - NEW JERSEY DEPARTMENT OF HEALTH
Submit one completed application in electronic media and 35 paper copies of the application forms and all required
documentation to:
Mailing Address:
New Jersey Department of Health
Office of Certificate of Need and Healthcare Facility Licensure
P. O. Box 358
Trenton, NJ 08625-0358
Overnight Services (DHL, FedEx, UPS):
New Jersey Department of Health
Office of Certificate of Need and Healthcare Facility Licensure
25 South Stockton Street, 2nd Floor
Trenton, NJ 08608-1832
C. SIGNATURE
All applications must be signed by the current Chief Administrative Officer or Board Chairman of the Hospital.
D. FILING FEE
All applications must be accompanied by a certified check, cashier's check, or money order made payable to "Treasurer,
State of New Jersey." Failure to submit the appropriate fee at the time of filing may result in rejection of the application.
FEE SCHEDULE:
Total Project Cost (TPC) Fee Required
$1,000,000 or Less $7,500
Greater Than $1,000,000 $7,500 + 0.25% of TPC
Transfer of Ownership $7,500
Change in Scope or Location $7,500 + 0.25% of cost in excess of approved TPC, where excess is
$1,000,000 or more
C. Change in Cost No Certificate of Need required; 0.25% of cost in excess of approved TPC,
where excess is $1,000,000 or more, shall be remitted prior to licensure
E. COMPLETENESS
1. ALL QUESTIONS REQUIRE AN ANSWER AND ALL SCHEDULES MUST BE COMPLETELY FILLED OUT.
2. Certificate of Need forms must be filed in sequential order. Do not renumber pages.
3. All exhibits must be identified as noted herein and attached to the back of the Certificate of Need Application form
and referenced to the corresponding item in the appropriate section.
4. Identify each response in the narrative section by question number and respond in sequential order. All additional
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CN- 3 (Instructions)

New Jersey Department of Health

CERTIFICATE OF NEED APPLICATIONS

FOR HOSPITAL-RELATED PROJECTS

_________________________________________________________________________________________________________

SECTION I. GENERAL REQUIREMENTS

1. CERTIFICATE OF NEED

A. PRE-SUBMISSION

Prior to the preparation of the application materials, it is strongly recommended that the applicant discuss the proposed project with the local advisory board in the service area presently served or anticipated and staff of the New Jersey Department of Health. B. SUBMISSION - NEW JERSEY DEPARTMENT OF HEALTH Submit one completed application in electronic media and 35 paper copies of the application forms and all required documentation to: Mailing Address: New Jersey Department of Health Office of Certificate of Need and Healthcare Facility Licensure P. O. Box 358 Trenton, NJ 08625- 0358 Overnight Services (DHL, FedEx, UPS): New Jersey Department of Health Office of Certificate of Need and Healthcare Facility Licensure 25 South Stockton Street, 2nd Floor Trenton, NJ 08608- 1832 C. SIGNATURE All applications must be signed by the current Chief Administrative Officer or Board Chairman of the Hospital. D. FILING FEE All applications must be accompanied by a certified check, cashier's check, or money order made payable to "Treasurer, State of New Jersey." Failure to submit the appropriate fee at the time of filing may result in rejection of the application. FEE SCHEDULE: Total Project Cost (TPC) Fee Required $1,000,000 or Less $7, Greater Than $1,000,000 $7,500 + 0.25% of TPC Transfer of Ownership $7, Change in Scope or Location $7,500 + 0.25% of cost in excess of approved TPC, where excess is $1,000,000 or more C. Change in Cost No Certificate of Need required; 0.25% of cost in excess of approved TPC, where excess is $1,000,000 or more, shall be remitted prior to licensure E. COMPLETENESS

  1. ALL QUESTIONS REQUIRE AN ANSWER AND ALL SCHEDULES MUST BE COMPLETELY FILLED OUT.
  2. Certificate of Need forms must be filed in sequential order. Do not renumber pages.
  3. All exhibits must be identified as noted herein and attached to the back of the Certificate of Need Application form and referenced to the corresponding item in the appropriate section.
  4. Identify each response in the narrative section by question number and respond in sequential order. All additional

CN- 3 (Instructions) supporting documentation must be attached to the back of the Certificate of Need Application form after the exhibits, in a Section titled "Appendix."

  1. Only complete applications will be processed (NJAC 8:33-4.5). Failure to submit all required information and documentation and/or to follow the steps outlined herein when the Certificate of Need is filed may result in a determination that the application is incomplete and, as such, may not be accepted for processing.
  2. All cost estimates for new construction and/or renovations, should be submitted in those dollars which would be needed to complete the project over the anticipated period of construction, assuming that construction was to begin at the time of your Certificate of Need submission.
  3. Change in cost/scope applications shall request in writing a construction cost allowance prior to submission of the change in cost/scope application.
  4. All applications must be signed and dated by the applicant, accompanied by the correct application fee, accompanied by out-of-state track records reports (if applicable), and completely and accurately filled out (i.e., no partial or unresponsive answers). APPLICATIONS NOT MEETING THESE REQUIREMENTS WILL NOT BE ACCEPTED FOR PROCESSING. F. MODIFICATION
  5. Under no circumstances may an application be modified or altered to change the number or category of inpatient beds, proposed services, equipment subject to a planning regulation, or change in site after the application submission deadline date. An applicant desiring to make such a modification or alteration shall be required to withdraw the application from the current cycle and submit a new application for the next cycle.
  6. Modifications not specified in (1) above such as changes in square footage and change in cost will be permitted if such changes are in response to completeness questions from the Department and made prior to submission of the application to the review process. 2. LICENSING Licensing manuals for hospital-based services may be obtained from the New Jersey Department of Health, Office of Certificate of Need and Healthcare Facility Licensure (609- 292 - 5960). 3. FINANCIAL Information with regard to financial requirements may be obtained from the New Jersey Department of Health, Office of Certificate of Need and Healthcare Facility Licensure (609- 292 - 5960). 4. CONSTRUCTION Information regarding construction requirements may be obtained from the New Jersey Department of Community Affairs, Division of Codes and Standards, Health Care Plan Review (609 633-8153).

CN- 3 (Instructions)

  1. Identify alternative approaches to the project which were considered and demonstrate in specific terms how the option selected, relative to all other alternatives, most effectively benefits the health care system through achieving capital and operating savings, increasing access, and/or improving quality of care.
  2. Efficient design is encouraged to promote significant life cycle operational cost savings. If the project involves new construction please identify operational cost savings which may result from such construction.
  3. Indicate the conformance of the proposed project, if applicable, with appropriate State guidelines and regulations. In the case of regional services (e.g., cardiac diagnostic and surgical services, perinatal services, organ transplantation services, etc.) each provision of the applicable rule must be addressed.
  4. Attach a map of your patient service area including the location of your institution. Identify major service areas based on patient origin studies for inpatients and/or outpatients.
  5. Provide a breakdown of total project costs into costs associated with each programmatic or functional component: i.e., by service, department, medical specialty, licensed bed category, or other logical category; and by floor or unit if possible (See Schedule A).
  6. The certificate of need criteria identified in N.J.A.C. 8:33-4.9 and N.J.A.C. 8:33-4.10 must be addressed.
  7. Identify (by certificate of need number and project description) all previously approved certificates of need which have not been completed and indicate the current status of each project.
  8. Identify (by certificate of need number) any conditions of certificate of need approval which have not been met and explain. 2. CONSTRUCTION REQUIREMENTS A. All cost estimates for new construction and/or renovations, should be submitted in those dollars which would be needed to complete the project over the anticipated period of construction, assuming that construction was to begin at the time of your Certificate of Need submission. B. Provide proposed total "building gross square footage" of new construction. Indicate building's proposed design, number of stories and construction type. (Also see "H" if multiple areas are involved.) C. Projects involving complete demolition of a structure(s) should indicate structure's total cubic feet, number of stories, gross square footage per floor and construction type. Identify demolition cost estimate as a separate line item. D. Provide total square footage of area proposed for renovations. Indicate the current or most recent use and physical layout of the space. Provide a summary description of the renovations proposed and/or required, acknowledging all applicable construction trades. (Also see "H" if multiple areas are involved.) E. Indicate any anticipated construction related circumstances and/or conditions (e.g.. asbestos, wetlands, CAFRA, fire suppression system) that may explain your new construction and/or renovation cost estimate being over or under an average estimate. Identify the associated cost effect anticipated. F. Renovation projects involving asbestos abatement should provide the associated cost estimate as a separate line item, identifying the areas and total square/linear footage involved. G. Provide description and/or listing of equipment items inclusive of the "fixed equipment not in construction contracts" line item(s) cost estimates (See pages 4, 5 and 6). H. Projects with more than one department service area affected by new construction or renovations must complete Schedule A. Utilize a separate line item for each service area on a given floor/wing and for any change in use of an existing area. Square footage and construction/renovation hard cost totals of this form should reconcile with those amounts indicated on pages 1 and 2 of the Certificate of Need Application. Account for all displaced department service areas, relocations and vacated areas, even if there are no associated construction/renovation costs. (Change in cost/scope applicants are to provide update of space allocation forms previously submitted.) Indicate how this information was established. I. Any applicant who is proposing a vertical expansion (additional floor(s) to an existing building) shall submit a certification, from an appropriate design professional, that the existing structure/affected building shall comply with the current code requirements for increase in size (floor area and/or height) and earthquake loads. J. In addition to the fire suppression system(s) that may be required by the State Uniform Construction Code, the proposed scope of work shall include those systems, as appropriate, after a review of N.J.A.C. 5:23-2.4 and 2.5, and in consideration that the Uniform Fire Code State of New Jersey will require that all hospitals be fully suppressed. Installation of compliant suppression system(s) and related construction cost(s) shall be included in the proposed project.

CN- 3 (Instructions) K. The following architectural prints shall be submitted to visually indicate the entire scope of work as described in the written narrative:

  • Site plan showing building footprint(s) (graphically differentiating existing structures to remain, those to be demolished and new construction) and compass orientation.
  • Floor Plan(s)-Projects $15 million and over: (At 1/8" scale, single line showing door openings and windows, rooms/areas to be labeled to indicate use/service and numbered, new construction/renovation work to be graphically differentiated from existing work to remain).
  • Projects under $15 million, 1/16" scale sketch. L. Change in cost/scope applications, for which the project is already under construction, must submit a copy of the signed contract with the Contractor and Architect (if not previously submitted to the New Jersey Department of Community Affairs). A copy of the most recent Contractor Requisition for Payment (Form AIA-G702) must be submitted with cost/scope application in addition to a reconciliation summary statement of same to agree with the total construction/renovation cost requested in the cost/scope application, acknowledging all incurred and anticipated change orders. M. For change in cost/scope applications, applicants are to itemize and explain all construction/ renovation related cost changes (increases and/or decreases), noting those that are attributed to additional expanded project scope which were not in original Certificate of Need, those attributed to overruns (broken down as unanticipated-unforeseen and/or unanticipated due to initial underestimate) and those related to deletion of any portion of the original approved project scope.

CN- 3

New Jersey Department of Health

APPLICATION - CERTIFICATE OF NEED

FOR HOSPITAL-RELATED PROJECTS

Name of Hospital FOR STATE USE ONLY Street Address Appl. No. City State Zip Code Review Cycle County Type of C/N: Change in Bed Capacity New Health Care Service Modernization/Renovation Major Movable Equipment Construction/Acquisition Type of Hospital Name of Chief Executive Officer Name of Contact Person Title Date Received: Telephone Number A. Project Cost:

  1. Total Capital Cost:
  2. Financing Cost: Method of Financing:
  3. Total Project Cost (1 + 2):
  4. Equity Contribution:
  5. Construction Cost: Type Square Feet Construction/ Capital Lease Cost Construction/ Capital Lease Cost Per Square Foot New Construction Renovation Lease
  6. Will this project result in any permanent change in licensed or planning bed category or capacity of the existing facility? Yes No
  7. Provide a brief (50 words) description of the project:

CN- 3

B. PROJECT COST

Project costs should be submitted in those dollars which would be needed to complete the project over the anticipated period of construction if construction were to begin at the time of submission of the Certificate of Need proposal to the Department. Do not include contingency. The Department will calculate a construction cost allowance for the project in lieu of providing a contingency factor for the time period from Certificate of Need submission to the start of construction.

  1. Capital Costs Studies and/or Surveys Site Survey and Soil Investigation Architect and Engineer Fees Legal and Other Special Services Plans and Specifications Demolition Renovations Asbestos Abatement New Construction Fixed Equipment Not in Construction Contracts (New Construction) Fixed Equipment Not in Construction Contracts (Renovations) Major Movable Equipment Supervision and Inspection of Site and Building(s) Purchase of Land Purchase of Building(s) Capital Value of Lease (true operating leases should be included in operating budget and details identified) Developmental and/or Start-Up Costs Department of Health Approved Construction Cost Allowance Other (Specify) (Do NOT include contingency) Total Capital Costs
  2. Financing Costs Capitalized Interest Debt Service Reserve Fund Other Financing Costs (Include fees assessed by any financing agency, bond counsel fees, trustees bank fees and/or other costs related to sale of bonds) Total Financing Costs Total Project Cost

CN- 3

E. EQUIPMENT

  1. Major Moveable Equipment Qty. Description (^) ReplacementAddition/ Purchase/ Lease/ Donation Total Purchase Cost/ Donation Annual Lease Cost TOTAL

CN- 3

E. EQUIPMENT

  1. Fixed Equipment Qty. Description (^) ReplacementAddition/ Purchase/ Lease/ Donation Total Purchase Cost/ Donation Annual Lease Cost TOTAL

CN- 3

F. PROJECT SUMMARY

(A written summary of your project is required. Please do so on Pages 7 through 9 of the Certificate of Need Application form. The summary must be comprehensive and not exceed three pages.

CN- 3 F. PROJECT SUMMARY, Continued

CN- 3

G. GRANTS

Attach a copy of grant budget submitted. Source Amount Current Status of Grant TOTAL H. VOLUME OF ACTIVITY IN COST CENTERS RELATED TO PROJECT

  1. Admissions or Cases Routine and Emergency Service Current Year^ Projected Year 1 Projected Year 2 Medical/Surgical Admissions * Same Day Surgery Admissions Pediatric Acute Psychiatric Long-Term Psychiatric Obstetric Burn Unit Intensive Care Unit Neonatal Intensive Care Coronary Care Unit Newborn Nursery TOTAL *Exclude Same Day Surgery Admissions.

CN- 3

  1. Visits Cost Center Current Year Projected Year 1 Projected Year 2 Emergency Room Clinic Private Outpatient I. OPERATING PROJECTIONS
  2. Revenues (Report in 000's): Category 2 Most Recent Actual Years Ended (Audited) Current Year Projection Projected Years Ending (Through Second Year After Project Completion) Inpatient Services Outpatient Services Total Patient Service Revenues Allowance for Charity Care Contractual Allowances Net Patient Service Revenues Other Operating Revenues Total Net Operating Revenues

CN- 3

  1. Patient Mix by Sources of Revenue (Report in 000's): Category 2 Most Recent Actual Years Ended (Audited) Current Year Projection Projected Years Ending (Through Second Year After Project Completion) Medicare Medicaid Blue Cross Commercial Insurance Self-Pay Indigent Other Total Patient Service Revenue

J. PROJECTED STAFFING LEVELS

Provide a list of the type, number of Full-Time Equivalents (FTE's) and estimated annual salary of the personnel required to staff the new or expanded facility and identify the source from which you intend to obtain the required personnel. (Compute FTE based on 2,080 annual hours per employee.) Personnel Category (^) Estimated Annual Salary Number of FTE's Sources of Personnel Additional Personnel To Department Job Title Be Hired

CN- 3

K. ACCESS TO SERVICES

  1. Was your facility, or a portion thereof, constructed with Hill-Burton funds? Yes No
  2. Indicate the percentage of uncompensated care provided annually for inpatient and outpatient services: a. Inpatient Mortgage (provide details in D-2) % b. Outpatient %
  3. What is the number of physicians with admitting privileges at your facility?
  4. What is the number of physicians with admitting privileges who admit Medicaid patients to your facility?
  5. Does your facility require a pre-admission deposit? Yes No a. If Yes, explain:
  6. Clinic Services (Exclude Private Outpatient Visits): Type Hours/Days Per Week of Operation Patient Visits/Week General Medical Surgery Cardiac Prenatal Pediatric Psychiatric Post-Partum Other: