OAR 333-615-0040
Availability of Alternative Uses for Resource


The following principles shall be applicable to the interpretation of OAR 333-580-0050 (Availability of Resources and Alternative Uses of Those Resources)(1) and (2). The term “quality unit” is explained in OAR 333-615-0050 (Quality and Costs):

(1)

The methods of meeting acute psychiatric bed need, in order of preference, shall be:

(a)

Conversion of existing licensed space to purposes of psychiatric treatment where such conversion is feasible to provide an adequate inpatient program at less cost than building new licensed space, especially when the average daily census for the facility as a whole for the most recent year ending September 30, converted to expected peak occupancy under the methods of OAR 333-590-0050 (Bed Need Methodology for Proposed New Hospitals)(8) and (9), does not exceed the current licensed number of beds at the facility;

(b)

A project resulting in the smallest feasible net increase in acute licensed capacity within an existing general hospital or specialty hospital license, especially when the average daily census to the facility as a whole, for the most recent year ending September 30, converted to expected peak occupancy under the methods of OAR 333-590-0050 (Bed Need Methodology for Proposed New Hospitals)(8) and (9), equals or exceeds the current licensed number of beds at the facility;

(c)

A separately licensed new psychiatric hospital, not part of a general hospital, that will provide adequate psychiatric inpatient care at the most reasonable charges per day and per spell of treatment, for care that must be rendered on an inpatient basis, taking into consideration the factors in OAR 333-615-0000 (General)(2).

(2)

A proposed psychiatric inpatient bed project shall be related to alternatives, as defined in OAR 333-615-0010 (Definitions)(1), with preference given in the following order:

(a)

Projects which include development of alternative care resources as part of the project, if an unmet need for such resources in the service area is demonstrated;

(b)

Projects for which formal arrangements, together with triage criteria and mechanisms, are documented in the application with respect to all levels of low cost alternative care resources listed in OAR 333-615-0010 (Definitions)(1). Documentation of triage criteria and mechanisms should include discussion of the relation of such criteria to the level of placement criteria developed by the Office of Health Policy and insurers under ORS 743.556(16)(b). Applicants should show that their triage criteria and mechanisms will be consistent with such level of care screening criteria.

(3)

If, in the service area defined in OAR 333-615-0030 (Estimates of Need)(1), there does not exist a quality unit of minimum economically viable size, sections (1) and (2) of this rule apply.

(4)

If, in the service area defined in OAR 333-615-0030 (Estimates of Need)(1), there does exist one quality unit, and its occupancy (from the designated service area) is above the appropriate criterion in Table 1 for the year ending September 30 preceding the formal application, and available private acute beds do not exceed the interim population-based limit indicated in OAR 333-615-0030 (Estimates of Need)(2), a minimum economically viable increment may be needed. In addition to sections (1) and (2) of this rule, the following options will be considered, in order of preference:

(a)

The existing quality unit may be expanded;

(b)

An additional unit in the service area may be developed, provided that considerations of cost, access and quality outweigh the estimated economic advantages, if any, of expansion of the existing unit.

(5)

If, in the service area defined in OAR 333-615-0030 (Estimates of Need)(1), there exist two or more units, sections (1), (2) and (4) of this rule apply, preference being given to expansion of the highest quality existing unit unless consideration of the factors in subsection (4)(b) of this rule leads to preference for an additional unit.

(6)

In evaluating the relationship of any proposed project to the existing health care system of the service area, the division shall address possible compromising of quality of care. The division shall consider the conformity to state safety and program standards of both the proposed project and existing, related health services now provided to the population of the service area; the impact of the project, once completed and operational, upon the financial ability of providers of related services to maintain present quality; and the feasibility that the proposed project will be sufficiently efficient to maintain quality standards at reasonable cost. Impact on total community health care costs, not merely charges per day or charges per stay, shall be considered.
[ED. NOTE: Tables referenced are available from the agency.]

Source: Rule 333-615-0040 — Availability of Alternative Uses for Resource, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=333-615-0040.

Last Updated

Jun. 8, 2021

Rule 333-615-0040’s source at or​.us