Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

144.551 HOSPITAL CONSTRUCTION MORATORIUM.
    Subdivision 1. Restricted construction or modification. (a) The following construction or
modification may not be commenced:
(1) any erection, building, alteration, reconstruction, modernization, improvement,
extension, lease, or other acquisition by or on behalf of a hospital that increases the bed capacity
of a hospital, relocates hospital beds from one physical facility, complex, or site to another, or
otherwise results in an increase or redistribution of hospital beds within the state; and
(2) the establishment of a new hospital.
(b) This section does not apply to:
(1) construction or relocation within a county by a hospital, clinic, or other health care
facility that is a national referral center engaged in substantial programs of patient care, medical
research, and medical education meeting state and national needs that receives more than 40
percent of its patients from outside the state of Minnesota;
(2) a project for construction or modification for which a health care facility held an approved
certificate of need on May 1, 1984, regardless of the date of expiration of the certificate;
(3) a project for which a certificate of need was denied before July 1, 1990, if a timely
appeal results in an order reversing the denial;
(4) a project exempted from certificate of need requirements by Laws 1981, chapter 200,
section 2;
(5) a project involving consolidation of pediatric specialty hospital services within the
Minneapolis-St. Paul metropolitan area that would not result in a net increase in the number of
pediatric specialty hospital beds among the hospitals being consolidated;
(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
pediatric-orthopedic hospital on an existing site and that will not result in a net increase in the
number of hospital beds. Upon completion of the reconstruction, the licenses of both hospitals
must be reinstated at the capacity that existed on each site before the relocation;
(7) the relocation or redistribution of hospital beds within a hospital building or identifiable
complex of buildings provided the relocation or redistribution does not result in: (i) an increase
in the overall bed capacity at that site; (ii) relocation of hospital beds from one physical site or
complex to another; or (iii) redistribution of hospital beds within the state or a region of the state;
(8) relocation or redistribution of hospital beds within a hospital corporate system that
involves the transfer of beds from a closed facility site or complex to an existing site or complex
provided that: (i) no more than 50 percent of the capacity of the closed facility is transferred; (ii)
the capacity of the site or complex to which the beds are transferred does not increase by more
than 50 percent; (iii) the beds are not transferred outside of a federal health systems agency
boundary in place on July 1, 1983; and (iv) the relocation or redistribution does not involve
the construction of a new hospital building;
(9) a construction project involving up to 35 new beds in a psychiatric hospital in Rice
County that primarily serves adolescents and that receives more than 70 percent of its patients
from outside the state of Minnesota;
(10) a project to replace a hospital or hospitals with a combined licensed capacity of 130
beds or less if: (i) the new hospital site is located within five miles of the current site; and (ii) the
total licensed capacity of the replacement hospital, either at the time of construction of the initial
building or as the result of future expansion, will not exceed 70 licensed hospital beds, or the
combined licensed capacity of the hospitals, whichever is less;
(11) the relocation of licensed hospital beds from an existing state facility operated by the
commissioner of human services to a new or existing facility, building, or complex operated by
the commissioner of human services; from one regional treatment center site to another; or from
one building or site to a new or existing building or site on the same campus;
(12) the construction or relocation of hospital beds operated by a hospital having a statutory
obligation to provide hospital and medical services for the indigent that does not result in a net
increase in the number of hospital beds, notwithstanding section 144.552, 27 beds, of which 12
serve mental health needs, may be transferred from Hennepin County Medical Center to Regions
Hospital under this clause;
(13) a construction project involving the addition of up to 31 new beds in an existing
nonfederal hospital in Beltrami County;
(14) a construction project involving the addition of up to eight new beds in an existing
nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
(15) a construction project involving the addition of 20 new hospital beds used for
rehabilitation services in an existing hospital in Carver County serving the southwest suburban
metropolitan area. Beds constructed under this clause shall not be eligible for reimbursement
under medical assistance, general assistance medical care, or MinnesotaCare;
(16) a project for the construction or relocation of up to 20 hospital beds for the operation of
up to two psychiatric facilities or units for children provided that the operation of the facilities or
units have received the approval of the commissioner of human services;
(17) a project involving the addition of 14 new hospital beds to be used for rehabilitation
services in an existing hospital in Itasca County;
(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin County that
closed 20 rehabilitation beds in 2002, provided that the beds are used only for rehabilitation in the
hospital's current rehabilitation building. If the beds are used for another purpose or moved to
another location, the hospital's licensed capacity is reduced by 20 beds;
(19) a critical access hospital established under section 144.1483, clause (9), and section
1820 of the federal Social Security Act, United States Code, title 42, section 1395i-4, that
delicensed beds since enactment of the Balanced Budget Act of 1997, Public Law 105-33, to
the extent that the critical access hospital does not seek to exceed the maximum number of
beds permitted such hospital under federal law;
(20) notwithstanding section 144.552, a project for the construction of a new hospital in the
city of Maple Grove with a licensed capacity of up to 300 beds provided that:
(i) the project, including each hospital or health system that will own or control the entity
that will hold the new hospital license, is approved by a resolution of the Maple Grove City
Council as of March 1, 2006;
(ii) the entity that will hold the new hospital license will be owned or controlled by one or
more not-for-profit hospitals or health systems that have previously submitted a plan or plans for a
project in Maple Grove as required under section 144.552, and the plan or plans have been found
to be in the public interest by the commissioner of health as of April 1, 2005;
(iii) the new hospital's initial inpatient services must include, but are not limited to, medical
and surgical services, obstetrical and gynecological services, intensive care services, orthopedic
services, pediatric services, noninvasive cardiac diagnostics, behavioral health services, and
emergency room services;
(iv) the new hospital:
(A) will have the ability to provide and staff sufficient new beds to meet the growing needs
of the Maple Grove service area and the surrounding communities currently being served by the
hospital or health system that will own or control the entity that will hold the new hospital license;
(B) will provide uncompensated care;
(C) will provide mental health services, including inpatient beds;
(D) will be a site for workforce development for a broad spectrum of health-care-related
occupations and have a commitment to providing clinical training programs for physicians and
other health care providers;
(E) will demonstrate a commitment to quality care and patient safety;
(F) will have an electronic medical records system, including physician order entry;
(G) will provide a broad range of senior services;
(H) will provide emergency medical services that will coordinate care with regional
providers of trauma services and licensed emergency ambulance services in order to enhance the
continuity of care for emergency medical patients; and
(I) will be completed by December 31, 2009, unless delayed by circumstances beyond the
control of the entity holding the new hospital license; and
(v) as of 30 days following submission of a written plan, the commissioner of health has not
determined that the hospitals or health systems that will own or control the entity that will hold
the new hospital license are unable to meet the criteria of this clause;
(21) a project approved under section 144.553;
(22) a project for the construction of a hospital with up to 25 beds in Cass County within
a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's license holder is
approved by the Cass County Board; or
(23) a project for an acute care hospital in Fergus Falls that will increase the bed capacity
from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16 and closing a
separately licensed 13-bed skilled nursing facility.
    Subd. 2. Emergency waiver. The commissioner shall grant an emergency waiver from
the provisions of this section if the need for the project is a result of fire, tornado, flood, storm
damage, or other similar disaster, if adequate health care facilities are not available for the people
who previously used the applicant facility, and if the request for an emergency waiver is limited in
nature and scope only to those repairs necessitated by the natural disaster.
    Subd. 3. Enforcement. The district court in Ramsey County has jurisdiction to enjoin an
alleged violation of subdivision 1. At the request of the commissioner of health, the attorney
general may bring an action to enjoin an alleged violation. The commissioner of health shall
not issue a license for any portion of a hospital in violation of subdivision 1. No hospital in
violation of subdivision 1 may apply for or receive public funds under chapters 245 to 256B,
or from any other source.
    Subd. 4. Definitions. Except as indicated in this subdivision, the terms used in this section
have the meanings given them under Minnesota Statutes 1982, sections 145.832 to 145.845,
and the rules adopted under those sections.
The term "hospital" has the meaning given it in section 144.50.
History: 1990 c 500 s 1; 1990 c 568 art 2 s 8; 1993 c 243 s 1; 2000 c 488 art 9 s 1; 1Sp2001
c 9 art 1 s 37; 2002 c 379 art 1 s 113; 1Sp2003 c 14 art 7 s 43; 2004 c 187 s 1; 1Sp2005 c
4 art 6 s 22; 2006 c 172 s 1; 2006 c 249 s 1