Construction of Healthcare Facilities: Procurement of Funding, Zoning, Environment Constraints, Certificate of Need

Regulatory Expectations, Fiduciary Responsibilities, Compliance Considerations, Feasibility of Design, Scheduling

Recording of a 90-minute CLE video webinar with Q&A


Conducted on Thursday, May 20, 2021

Recorded event now available

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Program Materials

This CLE webinar will prepare construction counsel drafting contracts and advising on developing healthcare facilities to address contractual and regulatory issues that take the project from conception to completion. The panel will discuss how to address issues of funding, zoning, and, when applicable, acquiring a certificate of need (CON), as well as address the regulatory compliance with the National Fire Protection Association (NFPA) 101 standards, the Life Safety Code (LSC), and NFPA 99 standards (the Health Care Facilities Code (HCFC)), and more.

Description

The current health crisis has spotlighted the need to address and expand healthcare facilities in the U.S., starting with addressing construction and design needs. Healthcare construction is unique in the number of legal issues raised throughout the project, from procuring funding and addressing zoning and environmental issues, to anticipating regulatory setbacks. The construction of a hospital or medical center must take a comprehensive approach.

More than half of U.S. states have CON programs, which regulate the establishment or expansion of healthcare facilities and services in a given area by approving their major capital expenditures. If a CON is required, consideration should be given to contingencies in key contracts. Likewise, construction attorneys should understand the roles of the Centers for Medicare & Medicaid Services (CMS) and the Joint Commission that impact the expectations and timeline for government licensing following construction. Overlooking specific requirements during construction--for example, the minimum width of a hallway--could result in denial of an operating license.

Construction counsel for hospitals and other healthcare providers must draft contracts with maximum flexibility to address the ongoing needs, including the scope of work, feasibility issues in design and scheduling, and compliance standards. Appreciating local DOB issues, and that some major cities necessitate the involvement of expediters or "Code Consultants," is also imperative.

Listen as our expert panel of construction attorneys provides key insights on the issues likely to give rise to claims in a healthcare build. The panel will address what contract drafting and consulting counsel should understand and input into contracts to protect their healthcare provider clients in preparation of a construction project.

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Outline

  1. Pre-certificate of need
    1. Funding
    2. Zoning
    3. Environmental
  2. Certificate of need
  3. Regulatory compliance
    1. CMS/Joint Commission accreditation and licensing
    2. Region-specific and building type design and construction issues
  4. Contractual considerations

Benefits

The panel will review these and other relevant topics:

  • How does funding procurement impact construction requirements, and how to incorporate lender oversight on the project?
  • What are the procedures for acquiring a CON when a CON law is operative? How can the expansion of healthcare facilities be structured around the CON?
  • What is the regulatory structure governing the project for CMS accreditation? How might state regulation affect the design as well?
  • How can construction contracts for healthcare facilities be structured to address the scope of work and compliance considerations?
  • What other compliance considerations should construction counsel address as part of the build-out's coordination through the accreditation stage?

Faculty

Gearhart, Cole
Cole Gearhart

Shareholder
Winstead

Mr. Gearhart is a member of the firm’s Real Estate Development & Investments Practice Group. He has...  |  Read More

Sherwin, Kristen
Kristen Sherwin

Shareholder
Winstead

Ms. Sherwin is a member of the firm’s Construction Practice Group. She represents plaintiffs and defendants in a...  |  Read More

Trunkes, Virginia
Virginia K. Trunkes

Counsel
Robinson & Cole

Ms. Trunkes advocates on behalf of developers; apartment building, brownstone and condominium unit owners; cooperative...  |  Read More

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