10- 144 C.M.R. ch. 503, § 5-2 - Withholding of Funds

A. No health care facility or other provider may be eligible to apply for or receive any reimbursement, payment or other financial assistance from any State agency or other 3rd-party payor, either directly or indirectly, for any capital expenditure or operating costs attributable to any project for which a Certificate of Need as required by this chapter has not been obtained. For the purposes of this section, the Department shall determine the eligibility of a facility to receive reimbursement for all projects subject to the provisions of this chapter. 22 M.R.S.A. Sec.348.

B. Facilities and persons subject to the provisions of this Act shall only be eligible to receive State funds for periods commencing after the Department's decision. Consequently, failure to give timely notice of intent to initiate a project subject to review in accordance with the provisions of the Act shall result in the denial of State reimbursement, payment or financial assistance for all costs related to the project for the period of time preceding the Department's decision, even if the Department ultimately decides to issue a Certificate of Need for the project.

The amount of reimbursement or payment to be denied by State agencies for failure of a provider to give timely notice will be as follows:

1 For projects that do not involve a capital expenditure, all operating costs related to the project for the period of time preceding the Department's decision to grant a Certificate of Need, or

2 For projects that involve capital expenditure, all operating costs related to the project for the period of time preceding the Department's decision to grant a Certificate of Need, and the proportion of total capital costs (including depreciation, amortization, interest and return on owner's equity) related to the project, as represented by a fraction, the numerator of which is the amount of the total capital expenditure obligated prior to the Department's decision to grant a Certificate of Need, and the denominator of which is the total capital expenditure related to the project for all accounting periods before and after the Department's decision.

Notes

10- 144 C.M.R. ch. 503, § 5-2