DHS 122.06(4)(a)
(a) Notice requesting applications. A notice requesting applications for beds under sub.
(1), applications from centers under sub.
(3) and applications for pilot projects under sub.
(3m) shall be published in a major daily newspaper in each affected planning area on the first and second working days of the month during which requests are to be made. The notice shall state the deadline by which all applications are to be received.
DHS 122.06(4)(b)
(b) Application forms. All applications shall be submitted on forms prescribed by the department. A prospective applicant may obtain the forms from the department.
DHS 122.06 Note
Note: For copies of application forms, contact: Resource Allocation Program, Division of Health Care Access and Accountability, P.O. Box 309, Madison, Wisconsin 53701.
DHS 122.06(4)(c)
(c) Period for accepting applications. The department shall accept applications submitted within 60 days following publication of the request for applications. The department shall return any application which:
DHS 122.06(4)(c)1.
1. Proposes to add new beds in a planning area, county or service area for which a request for applications was not made;
DHS 122.06(4)(c)3.
3. Was submitted more than 60 days after the request for applications was published; or
DHS 122.06(4)(d)1.1. Each application submitted under sub.
(1),
(3) or
(3m) shall be reviewed by the department for completeness. An application shall be deemed incomplete if the applicant:
DHS 122.06(4)(d)1.b.
b. Provides the information in a manner which is illegible or otherwise unusable by the department; or
DHS 122.06(4)(d)1.c.
c. Provides information which contradicts or is not justified by other materials in the application.
DHS 122.06(4)(d)2.
2. The department may request additional information from the applicant within 10 working days following receipt of the application by the department.
DHS 122.06(4)(d)3.
3. The applicant shall provide the required additional information within 30 days following the closing date for accepting applications.
DHS 122.06(4)(d)4.
4. The department shall return all applications for which additional information has not been received by the deadline established in subd.
3. DHS 122.06(4)(d)5.
5. Except as provided in subd.
4., the department shall declare all applications under subs.
(1),
(3) and
(3m) complete 60 days after the date of publication of the request for applications, or 90 days from that date if an application under sub.
(1),
(3) or
(3m), including any application under sub.
(1) or
(3m) undergoing concurrent review, was originally declared incomplete and the additional information requested by the department was received within 30 days following the closing date for accepting applications.
DHS 122.06 Note
Note: Upon written request, the department will provide technical assistance to any small business, as defined in s.
227.114 (1), Stats., or other small organization with fewer than 25 full-time employees or annual revenues of less than $2,500,000 regarding application materials and procedures. Requests should be sent to the Resource Allocation Program, Division of Health Care Access and Accountability, P.O. Box 309, Madison, Wisconsin 53701.
DHS 122.06(4m)(a)(a) Application forms. All applications under sub.
(2) shall be submitted on forms prescribed by the department. A prospective applicant may obtain the forms from the department.
DHS 122.06 Note
Note: For copies of the application forms, contact the Resource Allocation Program, Division of Health Care Access and Accountability, P.O. Box 309, Madison, Wisconsin 53701.
DHS 122.06(4m)(b)1.1. Each application submitted under sub.
(2) shall be reviewed by the department for completeness. An application shall be deemed incomplete if the applicant:
DHS 122.06(4m)(b)1.b.
b. Provides the information in a manner which is illegible or otherwise unusable by the department; or
DHS 122.06(4m)(b)1.c.
c. Provides information which contradicts or is not justified by other materials in the application.
DHS 122.06(4m)(b)2.
2. The department may request additional information from the applicant within 10 days following receipt of the application by the department.
DHS 122.06(4m)(b)3.
3. The department shall declare the application complete on the date which the department receives all the required information.
DHS 122.06 Note
Note: Upon written request, the department will provide technical assistance to any small business, as defined in s.
227.114 (1), Stats., or other small organization with fewer than 25 full-time employees or annual revenues of less than $2,500,000 regarding application materials and procedures. Requests should be sent to the Resource Allocation Program, Division of Health Care Access and Accountability, P.O. Box 309, Madison, Wisconsin 53701.
DHS 122.06(5)(a)
(a) Beds, centers and pilot projects. The department shall publish in the ch.
150 newsletter of the office of management and policy and in a major daily newspaper in each affected planning area a list of all complete applications received under sub.
(1),
(3) or
(3m), listing all applicants and describing their applications, within 20 days after the applications are declared complete. No person submitting an application may revise the cost or scope of the proposal after a notification of completeness has been made without the written consent of the department.
DHS 122.06(5)(b)
(b) Other applications. The department shall publish in the ch.
150 newsletter of the office of management and policy and in a major daily newspaper in each affected planning area a list of all complete applications received under sub.
(2) on or before the 20th day of the month following the month in which it declares the applications complete.
DHS 122.06(5)(c)
(c) Beginning of review period. The review period for applications shall begin on the publication date of the list under either par.
(a) or
(b).
DHS 122.06(6)
(6) Public meeting. Upon the request of any affected party, the department shall hold a public meeting within 60 days following publication of the list of complete applications submitted under sub.
(1),
(2),
(3) or
(3m). This meeting shall be used to elicit testimony from affected parties about applications under review. The department shall maintain minutes or another record of the testimony. All requests for a public meeting shall be received by the department within 10 days after publication of the list of complete applications. The public meeting shall be held prior to the initial finding by the department.
DHS 122.06(7)(a)(a) Review. The department shall review applications for their consistency with the criteria in s.
DHS 122.07 and shall issue an initial finding to approve or reject an application within 75 days following publication of the complete applications list, unless an applicant asks for an extension or, in the case of competing applications, all applicants undergoing concurrent review agree to an extension or the review cycle is extended under sub.
(8).
DHS 122.06(7)(b)
(b) Initial finding. The department's initial finding shall be based upon a comparative analysis of all applications undergoing concurrent review using the criteria specified in s.
DHS 122.07.
DHS 122.06(7)(c)1.
1. The department may issue approvals during 1987 only to applicants who file applications by June 2, 1987.
DHS 122.06(7)(c)2.
2. The department may delay the effective dates of approval to permit a gradual phase-in of conversions.
DHS 122.06(7)(c)3.
3. The department may issue an approval authorizing the applicant to reconvert all or some of the FDD beds to non-FDD nursing home beds without subsequent review and approval under this chapter if the reconversion meets both of the following requirements:
DHS 122.06(7)(c)3.a.
a. The department receives at least 30 days notice of reconversion, if all beds to be reconverted are unoccupied, or a notice that the facility has complied with the requirements of s.
50.03 (14) (c) to
(e), Stats., if any bed to be reconverted is occupied; and
DHS 122.06(8)
(8) Extension. The department may extend by 60 days the review cycle of all applications undergoing concurrent review under sub.
(1), if it finds that completing reviews within the cycle specified in sub.
(7) is not feasible due to the volume of applications received from any planning area.
DHS 122.06(9)(a)
(a) An adversely affected applicant or HSA may file a written request for a public hearing under s.
DHS 122.08 within 10 days after the date of the department's initial finding under sub.
(7). A hearing request is filed when it is received by the department. If no request for a hearing is made, or if a request is received after the 10-day limit, the department's initial finding shall be the department's final decision. Except as provided in par.
(b), a timely request for hearing from an applicant undergoing concurrent review shall preclude issuance of an approval for a competing concurrent application until a final decision is issued by the secretary or a designee. Hearings shall be held in the manner prescribed in s.
DHS 122.08.
DHS 122.06(9)(b)
(b) When an applicant for conversion to an FDD under s.
DHS 122.02 (2) (a) or
(c) who has undergone concurrent review files a timely request for a hearing under s.
DHS 122.08 on the initial finding, the department shall issue approvals for the competing concurrent applications that were initially approved but only for the number of beds that exceeds the number proposed by the applicant or applicants requesting a hearing. Approvals shall be issued in order beginning with the application which received the lowest score under s.
DHS 122.07 (2) (am).
DHS 122.06(10)(a)1.
1. The project does not increase the bed capacity of or totally replace an existing nursing home and the project was developed pursuant to a department-approved plan of correction to remedy code-related physical plant deficiencies. Applications submitted to correct code violations shall provide evidence of the violations and approved plan of correction and shall not go beyond what is necessary to correct those deficiencies; or
DHS 122.06(10)(a)2.
2. The application concerns a cost overrun on a previously approved project.
DHS 122.06(10)(b)
(b) Timing of application. An application under par.
(a) may be submitted at any time on forms prescribed by the department provided that at least 30 days notice has been given to the department of a person's intent to submit the application and the applicant has received written authorization from the department to submit the application.
DHS 122.06(10)(c)
(c) Review period. Applications which are subject to this subsection shall be reviewed by the department within 60 days of receipt of a complete application.
DHS 122.06(10)(d)1.1. The department shall have 5 working days to determine if the application is complete and, if incomplete, to issue a request for additional information to the applicant. An incomplete application is one in which:
DHS 122.06(10)(d)1.c.
c. The application contains information contradicted or unjustified by other materials in the application.
DHS 122.06(10)(d)2.
2. Applications that were originally declared incomplete shall be declared complete on the date of receipt of all additional information requested by the department.
DHS 122.06(10)(e)
(e) Meeting: No public meeting is required on any project submitted under this subsection.
DHS 122.06(10)(f)
(f) Department's initial finding. The department shall issue its initial finding to approve or reject the application within 60 days following receipt of a complete application. The initial finding shall be based on the criteria specified in s.
DHS 122.07.
DHS 122.06(10)(g)
(g) Hearing. An adversely affected applicant shall have 10 days after the date of the initial finding to file a written request for a public hearing to challenge the initial finding on an application. Public hearings shall be held in the manner specified in s.
DHS 122.08. If no requests for a hearing are made or if they are received after the 10-day limit, the initial finding becomes the department's final action.
DHS 122.06 History
History: Cr.
Register, March, 1985, No. 351, eff. 4-1-85; emerg. cr. (1) (c), eff. 1-1-87; emerg. cr. (1) (c), am. (9), eff. 5-31-87; cr. (1) (c), (7) (c) and (9) (b), am. (7) (a), renum. (9) to be (9) (a) and am.,
Register, October, 1987, No. 382, eff. 11-1-87; emerg. cr. (1) (d), eff. 10-1-88; emerg. cr. (1m) eff. 7-1-89; emerg. cr. (1r), eff. 9-21-90; am. (1) (a) 1. a. to d., (3), (4) (a), (b), (c) (intro.), (d) 1. intro., 2. and 5., (7) (a), (8), (9) (a), (10) (a) (intro.), (b) (d) 1. intro. and (10) (g), r. and recr. (2) and (10) (e), r. (6) (a) and (c), renum. (5) and (6) (b) to be (5) (a) and (6) and am., cr. (1) (c) 3. to 6., (4m), (5) (b) and (c),
Register, January, 1991, No. 421, eff. 2-1-91; emerg. cr. (1) (d), eff. 5-11-93; cr. (1) (d),
Register, January, 1994, No. 457, eff. 2-1-94; emerg. am. (2), (4) (a), (d) 1. (intro.) and 5., (5) (a), (6), cr. (3m), eff. 11-29-95; am. (2), (4) (a), (d) 1. (intro.), 5., (5) (a) and (6), cr. (3m),
Register, May, 1996, No. 485, eff. 6-1-96; corrections in (1) (d) (intro.) made under s.
13.92 (4) (b) 7., Stats.,
Register January 2009 No. 637.
DHS 122.07
DHS 122.07 Review criteria and selection process. DHS 122.07(1)(1)
Review criteria. The department shall use the criteria set out in this subsection in its review of all applications for project approval. Cost containment shall be the first priority in applying these criteria. The department may not approve a project unless the applicant has demonstrated that:
DHS 122.07(1)(a)
(a) The project is consistent with the state health plan and other long-term care support plans developed by the department.
DHS 122.07(1)(b)
(b) Medical assistance funds appropriated are sufficient to reimburse the applicant for providing nursing home or FDD care.
DHS 122.07(1)(c)
(c) The cost of renovating or replacing the facility or adding new beds is consistent with the cost of similar nursing home or FDD projects recently approved by the department and is reasonable based on independent analyses using industry-recognized cost-estimating techniques, and:
DHS 122.07(1)(c)1.
1. The proposed cost per bed for total facility replacement or for new facilities and beds does not exceed the following per bed cost expressed in the formula for nursing homes and FDDs, that C is less than or equal to 1.4 (S) (F).
DHS 122.07(1)(c)1.a.
a. “C" in this formula means maximum cost per bed using the capitalized project costs, including site improvements, buildings, fixed equipment, interest during construction and professional and financing fees, calculated to the midpoint of construction.
DHS 122.07 Note
Note: $31,000 is the statewide cost per bed for the base year 1983.
DHS 122.07 Note
Note: The department uses the inflation estimates published in Engineering News Record's Building Cost Index.
DHS 122.07(1)(c)2.
2. The proposed equivalent cost per bed for renovation and partial replacement projects does not exceed the per bed cost as expressed in the formulae for nursing homes and FDDs, that Ce is less than -
See PDF for diagram 
DHS 122.07 Note
Note: The maximum capital allowances calculated pursuant to par. (c) are not to be used by applicants as the expected cost of projects. Applicants are encouraged to seek less costly alternatives to the state maximums and all applications will have to meet all review criteria before undergoing the selection process in sub. (2).
DHS 122.07(1)(d)
(d) The project represents the most cost-effective, reasonable and feasible alternative for renovation or replacement of a facility, for the addition of beds to a facility or for the construction of a new facility.
DHS 122.07(1)(d)1.
1. The applicant shall provide an analysis which clearly defines all other reasonable alternatives such as:
DHS 122.07(1)(d)2.
2. The analysis shall include an evaluation of the existing physical plant.
DHS 122.07(1)(d)3.
3. The analysis shall include a life-cycle cost analysis for each alternative studied, using forms provided by the department. In this subsection “life cycle" means the number of years for which alternatives are compared, and “life-cycle cost" means all relevant costs associated with a project during the project's defined life cycle.
DHS 122.07 Note
Note: Copies of the life-cycle cost analysis form are included in the application materials. They may be obtained from the Resource Allocation Program, Division of Health Care Access and Accountability, P.O. Box 309, Madison, Wisconsin 53701.
DHS 122.07(1)(d)4.
4. The department may independently develop its own alternatives to compare with those developed by the applicant.
