Oklahoma

Oklahoma

Oklahoma requires CONs within four broad categories—hospital beds, beds outside hospitals, facilities and services. The state’s 27 CON laws apply only to long-term care and psychiatric or chemical dependency beds and facilities. The Oklahoma Department of Health reviews applications and applies different fees and timing schemes depending on whether applications are related to long-term care or psychiatric and chemical dependency care.

COVID-19 Response

On April 8, 2020, Governor Stitt issued an Executive order that suspended CON requirements for adding long-term care and psychiatric or chemical dependency beds for the duration of the state of emergency. Exec. Order 2020-13 at 4–5 (Apr. 11, 2020).

Application Process

In Oklahoma, the Department accepts CON applications at any time. Once an application is deemed complete, the Department must issue a decision within 45 days after the deadline for evidence and argument, except for applications for the acquisition of a psychiatric or chemical dependency facility, which must be decided within 15 days. Okla. Admin. Code § 310:4-1-5(7). The maximum fee for a long-term care facility CON application is $1,000 for the replacement of an existing facility and $5,000 for the acquisition of a facility. Okla. Stat. tit. 63, § 1-852(J). For psychiatric or chemical dependency CON applications, the fee is 0.75% of the capital cost of the project, with a minimum of $1,500 and a maximum of $10,000. Okla. Admin. Code § 310:4-1-5(3). Competitors can intervene in the application process by offering evidence or argument as to why an application should be denied, requesting a reconsideration hearing and appealing the final decision on an application in court. Okla. Stat. tit. 63, §§ 1-854.1, 1-880.8; Okla. Admin. Code §§ 310:4-1-5(6), 310:4-1-8.

CON? Number of CONs Moratoria Temporary COVID-19 response:
Hospital Beds Yes 4 Suspended at least some CON laws
Beds Outside Hospitals Yes 4 Suspended at least some CON laws
Equipment No
Facilities/ Buildings Yes 16 No action
Services Yes 3 No action
Emergency Medical Transport No

Note: these citations are accurate as of May 2020.

Oklahoma CONs in Detail

Category 

Types of CONs 

Okla. Stat. tit. 63 

Hospital Beds 

1.An increase in licensed long-term care beds, whether through establishment of a new facility or expansion of an existing one. 

 § 1-852(B)(3) 

2.Conversion of existing beds to psychiatric or chemical dependency beds. 

3.Increase in psychiatric or chemical dependency bed capacity. 

4.Adding new psychiatric or chemical dependency beds. 

§ 1-880.6(E)(3) 

Beds Outside Hospitals 

1.An increase in licensed long-term care beds, whether through establishment of a new facility or expansion of an existing one. 

2.Conversion of existing beds to psychiatric or chemical dependency beds. 

3.Increase in psychiatric or chemical dependency bed capacity. 

4.Adding new psychiatric or chemical dependency beds. 

§ 1-852(B)(3) 

Equipment 

 No CONs in this category.

 

Facilities/Buildings 

Establishment of a new long-term care facility, which includes: 

1.Nursing or specialized facilities. 

2.Skilled nursing care provided in a distinct part of a hospital. 

3.The nursing care component of a continuum of care facility.

4.The nursing care component of a life care community. 

§§ 1-851.1(4), 1-851.3,

1-852(A), (B)(3) 

Any capital investment of $1 million or more for a long-term care facility, which includes: 

5.Nursing or specialized facilities.

6.Skilled nursing care provided in a distinct part of a hospital.

7.The nursing care component of a continuum of care facility.

§§ 1-851.1(4), 1-852(B)(1) 

Acquisition of the ownership or operation of a long-term care facility, which includes: 

8.Nursing or specialized facilities. 

9.Skilled nursing care provided in a distinct part of a hospital. 

10.The nursing care component of a continuum of care facility. 

11.The nursing care component of a life care community. 

§§ 1-851.1(4), 1-852(B)(2) 

Category 

Types of CONs 

Okla. Stat. tit. 63 

Facilities/Buildings

12.Establishment or conversion of a psychiatric facility or unit. 

13.Establishment or conversion of a chemical dependency facility or unit.  

14.Conversion of a facility to a psychiatric or chemical dependency facility. 

§ 1-880.6(A) 

15.Any capital investment or lease of $500,000 or more.

 § 1-880.6(E)(1) 

16.Acquisition of psychiatric or chemical dependency facility by purchase, lease, donation or through transfer of stock or merger. 

§ 1-880.6(A), (E)(2) 

Services 

1.Establishment of psychiatric or chemical dependency services. 

2.Expansion of psychiatric or chemical dependency services. 

§ 1-880.6(A) 

3.Inpatient psychiatric or chemical dependency services for persons under 18 years of age offered or provided by a hospital or other health facility. 

 § 1-880.6(E)(3) 

Emergency Medical Transport 

 No CONs in this category.

 

Oklahoma CON Exceptions

No CON Required For:  

Okla. Stat. tit. 63 

1.An increase of no more than ten long-term care beds or 10% of the facility’s licensed beds, whichever is greater, per calendar year if: (a) the total capital cost is less than $1 million, and (b) the facility’s occupancy rate averaged 93% or more during the 12 months preceding the filing of the exemption request. 

§ 1-852(C)(1) 

2.Construction of a long-term care facility to replace or relocate all or part of the licensed bed capacity of an existing facility if: (a) the project involves no increase in licensed beds; (b) the facility shall be constructed no further than three miles for rural areas and 7.5 miles for urban areas from the facility it is replacing or relocating and (c) a plan for the use of the facility to be replaced or relocated is provided that ensures continuity of services. 

§ 1-852(C)(2) 

3.A management agreement for a long-term care facility if: (a) the management entity discloses all persons with controlling interest in the management entity and discloses all experience in long-term care facility management or operating in any state during the preceding three years; (b) the management entity and any person with controlling interest in the management entity has less than three years’ experience in management or operation of facilities and does not have a history of noncompliance and (c) the licensed entity remained responsible for facility operation, financial performance, staffing, and delivery of resident services required under the Nursing Home Care Act. 

§ 1-852(3)(a)–(c) 

4.Any changes in ownership of a long-term care facility resulting from the operation of law, including but not limited to divorce, probate, reversions and bankruptcy if the transfer of interest is to any already existing stockholder or person or entity listed on the license application disclosure statement. Also includes cancellations and expirations of leases. 

§ 1-852(D)(1) 

5.Ownership changes of a long-term care facility for estate planning purposes, treasury stock purchases, and transfers between existing owners and/or family members; increases in the amount of common stock or partnership interest for any individual who already owns 50% of the common stock or corporate entity involved or controls 50% or more of the interest in the partnership involved. 

§ 1-852(D)(2) 

6.New purchases of common stock or partnership interest in a long-term care facility by any legal entity if such new purchaser will own, in total, less than 50% of the corporate entity involved or partnership involved. 

§ 1-852(D)(3) 

7.A capital expenditure, for a psychiatric or chemical dependency facility, to eliminate or prevent imminent safety hazards, to comply with state licensure standards, or to comply with accreditation standards. 

§ 1-880.7(B)(1)