Ky. Rev. Stat. » Chapter 216B
Kentucky Revised Statutes

Ky. Rev. Stat. § 216B.040 (2026)

Functions of cabinet in administering chapter -- Regulatory authority

✓ current as of May 2026
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(1) The cabinet shall have four (4) separate and distinct functions in administering this chapter: (a) To approve or deny certificates of need in accordance with the provisions of this chapter, except as to those applications which have been granted nonsubstantive review status by the cabinet; (b) To issue and to revoke certificates of need; (c) To provide a due process hearing and issue a final determination on all actions by the cabinet to deny, revoke, modify, or suspend licenses of health facilities and health services issued by the cabinet; and (d) To enforce, through legal actions on its own motion, the provisions of this chapter and its orders and decisions issued pursuant to its functions. (2) The cabinet shall: (a) Promulgate administrative regulations pursuant to the provisions of KRS Chapter 13A: 1. To establish the certificate of need review procedures, including but not limited to, application procedures, notice provisions, procedures for review of completeness of applications, and timetables for review cycles. 2. To establish criteria for issuance and denial of certificates of need which shall be limited to the following considerations: a. Consistency with plans. Each proposal approved by the cabinet shall be consistent with the state health plan, and shall be subject to biennial budget authorizations and limitations, and with consideration given to the proposal's impact on health care costs in the Commonwealth. The state health plan shall contain a need assessment for long-term care beds, which shall be based on a statistically valid analysis of the present and future needs of the state as a whole and counties individually. The need assessment shall be applied uniformly to all areas of the state. The methodology shall be reviewed and updated on an annual basis. The long-term care bed need criteria in the state health plan or as set forth by the appropriate certificate of need authority shall give preference to conversion of personal care beds and acute care beds to nursing facility beds, so long as the state health plan or the appropriate certificate of need authority establishes a need in the affected counties and the proposed conversions are more cost- effective than new construction. The fact that the state health plan shall not address the specific type of proposal being reviewed shall not constitute grounds for disapproval of the proposal. Notwithstanding any other provision of law, the long-term care bed need criteria in the state health plan or as set forth by the appropriate certificate of need authority shall not consider, factor in, or include any continuing care retirement community's nursing home beds established under KRS 216B.015, 216B.020, 216B.330, and 216B.332; b. Need and accessibility. The proposal shall meet an identified need in a defined geographic area and be accessible to all residents of the area. A defined geographic area shall be defined as the area the proposal seeks to serve, including its demographics, and shall not be limited to geographical boundaries; c. Interrelationships and linkages. The proposal shall serve to accomplish appropriate and effective linkages with other services, facilities, and elements of the health care system in the region and state, accompanied by assurance of effort to achieve comprehensive care, proper utilization of services, and efficient functioning of the health care system; d. Costs, economic feasibility, and resources availability. The proposal, when measured against the cost of alternatives for meeting needs, shall be judged to be an effective and economical use of resources, not only of capital investment, but also ongoing requirements for health manpower and operational financing; e. Quality of services. The applicant shall be prepared to and capable of undertaking and carrying out the responsibilities involved in the proposal in a manner consistent with appropriate standards and requirements assuring the provision of quality health care services, as established by the cabinet; f. Hospital-based skilled nursing, intermediate care, and personal care beds shall be considered by the cabinet in determining the need for freestanding long-term care beds. (b) Conduct public hearings, as requested, in respect to certificate-of-need applications, revocations of certificates of need, and denials, suspensions, modifications, or revocations of licenses. (3) The cabinet may: (a) Issue other administrative regulations necessary for the proper administration of this chapter; (b) Administer oaths, issue subpoenas, subpoenas duces tecum, and all necessary process in proceedings brought before or initiated by the cabinet, and the process shall extend to all parts of the Commonwealth. Service of process in all proceedings brought before or initiated by the cabinet may be made by certified mail, or in the same manner as other process in civil cases, as the cabinet directs; (c) Establish by promulgation of administrative regulation under KRS Chapter 13A reasonable application fees for certificates of need; (d) Establish a mechanism for issuing advisory opinions to prospective applicants for certificates of need regarding the requirements of a certificate of need; and (e) Establish a mechanism for biennial review of projects for compliance with the terms of the certificate of need. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 143, sec. 12, effective July 14, 2018. -- Amended 2000 Ky. Acts ch. 264, sec. 3, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 299, sec. 2, effective July 15, 1996; and ch. 371, sec. 40, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 512, Part 7, sec. 26, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 493, sec. 1, effective July 13, 1990; and ch. 499, sec. 3, effective July 13, 1990. --Amended 1988 Ky. Acts ch. 210, sec. 9, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 347, sec. 6, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 135, sec. 7, effective July 15, 1980.

Notes of Decisions
Cited in 23 cases (7 in the last 5 years), 1984–2024 · leading case: Humana of Kentucky, Inc. v. NKC Hospitals, Inc., 751 S.W.2d 369 (Ky. 1988).
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Humana of Kentucky, Inc. v. NKC Hospitals, Inc., 751 S.W.2d 369 (Ky. 1988). · cites it 10× “” KRS 216B.040(2)(a)2.a. mandates that the Certificate of Need and Licensure Board “shall .”
Comprehensive Home Health Servs., Inc. v. Prof'l Home Health Care Agency, Inc., 434 S.W.3d 433 (Ky. 2013). · cites it 6× “The purpose of the SHP is to “set forth the review criteria that shall be used when reviewing applications for certificates of need for consistency with plans pursuant to KRS 216B.040.” SHP at iii. Pertinent to this case is the SHP’s home health “net need” calculation, which…”
Starks v. Kentucky Health Facilities, 684 S.W.2d 5 (Ky. Ct. App. 1984). · cites it 3× “These regulations, promulgated under KRS 216B.040, require that a proposal to develop a health facility “should” be consistent with the state health plan; the proposal “should” meet an identifiable need in a defined geographical area and be accessible to all residents of the…”
Dipendra Tiwari v. Eric Friedlander, 26 F.4th 355 (6th Cir. 2022). “Ky. Rev. Stat. § 216B.040(2)(a)(2); see 900 Ky.”
ACSR, Inc. v. Cabinet for Health Servs., 32 S.W.3d 96 (Ky. Ct. App. 2000). · cites it 7× “015(9) and (13), KRS 216B.040, KRS 216B.095, and 900 KAR 6:050.”
St. Luke Hospitals, Inc. v. Commonwealth, 186 S.W.3d 746 (Ky. Ct. App. 2005). · cites it 2× “Thus, under the statute, it must obtain a CON.”
Univ. of Kentucky v. Bunnell, 532 S.W.3d 658 (Ky. Ct. App. 2017). “015 (definition), KRS 216B.040 (functions of cabinet), KRS 216B.”
Commonwealth, Cabinet for Health Servs. v. Fam. Home Health Care, Inc., 98 S.W.3d 524 (Ky. Ct. App. 2003). “” KRS 216B.040(2)(a)2. The General Assembly has established the circumstances under which a person or entity is required to obtain a certificate of need.”
Cabinet for Human Resources v. Women's Health Servs., Inc., 878 S.W.2d 806 (Ky. Ct. App. 1994). “Under KRS 216B.040, KRS 216B.105, and KRS 216B.”
Nurses' Registry & Home Health Corp. v. Gentiva Certified Healthcare Corp., 326 S.W.3d 15 (Ky. Ct. App. 2010). “Specifically, KRS 216B.040(2)(a)2.a. requires the Cabinet “[t]o establish criteria for issuance and denial of certificates of need[,]” particularly that “[e]ach proposal approved by the cabinet shall be consistent with the state health plan[.”
Brightmore Home Care of Kentucky, LLC v. Commonwealth of Kentucky Cabinet for Health & Fam. Servs. (Ky. Ct. App. 2021). · cites it 6× “040(3)(b) states, in pertinent part, that the Cabinet may “[a]dminister oaths, issue subpoenas, subpoenas duces tecum, and all necessary process in proceedings brought before or initiated by the cabinet, and the process shall extend to all parts of the Commonwealth.”
Mercy Ambulance of Evansville, Inc. D/B/A Lifeguard Emergency Med. Servs. v. Commonwealth of Kentucky, Cabinet for Health & Fam. Servs., Off. of Inspector Gen., Div. of Certificate of Need (Ky. Ct. App. 2022). · cites it 5× “KRS 216B.040(2)(a)1. Emergent’s CON application was governed by five Review Criteria set forth in KRS 216B.”
Show all 23 citing cases →
— Ky. Rev. Stat. § 216B.040(1)(d) — 1 case
Eubanks & Marshall of Lexington, Psc, D/B/A Emw Women's Clinic of Lexington v. Commonwealth of Kentucky, Ex Rel. Cabinet for Health & Fam. Servs. (Ky. 2016).
— Ky. Rev. Stat. § 216B.040(2) — 1 case
Starks v. Kentucky Health Facilities, 684 S.W.2d 5 (Ky. Ct. App. 1984). “These regulations, promulgated under KRS 216B.040, require that a proposal to develop a health facility “should” be consistent with the state health plan; the proposal “should” meet an identifiable need in a defined geographical area and be accessible to all residents of the…”
— Ky. Rev. Stat. § 216B.040(2)(a) — 9 cases
Comprehensive Home Health Servs., Inc. v. Prof'l Home Health Care Agency, Inc., 434 S.W.3d 433 (Ky. 2013). “The purpose of the SHP is to “set forth the review criteria that shall be used when reviewing applications for certificates of need for consistency with plans pursuant to KRS 216B.040.” SHP at iii. Pertinent to this case is the SHP’s home health “net need” calculation, which…”
Humana of Kentucky, Inc. v. NKC Hospitals, Inc., 751 S.W.2d 369 (Ky. 1988). “” KRS 216B.040(2)(a)2.a. mandates that the Certificate of Need and Licensure Board “shall .”
St. Luke Hospitals, Inc. v. Commonwealth, 186 S.W.3d 746 (Ky. Ct. App. 2005). “Thus, under the statute, it must obtain a CON.”
Commonwealth, Cabinet for Health Servs. v. Fam. Home Health Care, Inc., 98 S.W.3d 524 (Ky. Ct. App. 2003). “” KRS 216B.040(2)(a)2. The General Assembly has established the circumstances under which a person or entity is required to obtain a certificate of need.”
Nurses' Registry & Home Health Corp. v. Gentiva Certified Healthcare Corp., 326 S.W.3d 15 (Ky. Ct. App. 2010). “Specifically, KRS 216B.040(2)(a)2.a. requires the Cabinet “[t]o establish criteria for issuance and denial of certificates of need[,]” particularly that “[e]ach proposal approved by the cabinet shall be consistent with the state health plan[.”
— Ky. Rev. Stat. § 216B.040(2)(a)(2) — 3 cases
Dipendra Tiwari v. Eric Friedlander, 26 F.4th 355 (6th Cir. 2022). “Ky. Rev. Stat. § 216B.040(2)(a)(2); see 900 Ky.”
Mercy Ambulance of Evansville, Inc. D/B/A Lifeguard Emergency Med. Servs. v. Commonwealth of Kentucky, Cabinet for Health & Fam. Servs., Off. of Inspector Gen., Div. of Certificate of Need (Ky. Ct. App. 2022). “KRS 216B.040(2)(a)1. Emergent’s CON application was governed by five Review Criteria set forth in KRS 216B.”
N. Kentucky Emergency Med. Servs., Inc. v. Christ Hosp. Corp., 875 S.W.2d 896 (Ky. Ct. App. 1993).
— Ky. Rev. Stat. § 216B.040(2)(a)(2)(a) — 1 case
Tiwari v. Meier (W.D. Ky. 2021).
— Ky. Rev. Stat. § 216B.040(2)(a)(2)(b) — 1 case
Tiwari v. Meier (W.D. Ky. 2021).
— Ky. Rev. Stat. § 216B.040(2)(a)(2)(c) — 1 case
Tiwari v. Meier (W.D. Ky. 2021).
— Ky. Rev. Stat. § 216B.040(2)(a)(2)(d) — 1 case
Tiwari v. Meier (W.D. Ky. 2021).
— Ky. Rev. Stat. § 216B.040(2)(a)(2)(e) — 1 case
Tiwari v. Meier (W.D. Ky. 2021).
— Ky. Rev. Stat. § 216B.040(2)(a)(l) — 1 case
ACSR, Inc. v. Cabinet for Health Servs., 32 S.W.3d 96 (Ky. Ct. App. 2000). “015(9) and (13), KRS 216B.040, KRS 216B.095, and 900 KAR 6:050.”
— Ky. Rev. Stat. § 216B.040(2)(b) — 2 cases
Humana of Kentucky, Inc. v. NKC Hospitals, Inc., 751 S.W.2d 369 (Ky. 1988). “” KRS 216B.040(2)(a)2.a. mandates that the Certificate of Need and Licensure Board “shall .”
Jewish Hosp., Inc. v. Baptist Health Care Sys., Inc., 902 S.W.2d 844 (Ky. Ct. App. 1995).
— Ky. Rev. Stat. § 216B.040(3)(b) — 1 case
Brightmore Home Care of Kentucky, LLC v. Commonwealth of Kentucky Cabinet for Health & Fam. Servs. (Ky. Ct. App. 2021). “040(3)(b) states, in pertinent part, that the Cabinet may “[a]dminister oaths, issue subpoenas, subpoenas duces tecum, and all necessary process in proceedings brought before or initiated by the cabinet, and the process shall extend to all parts of the Commonwealth.”
— Ky. Rev. Stat. § 216B.040(3)(f) — 1 case
Humana of Kentucky, Inc. v. NKC Hospitals, Inc., 751 S.W.2d 369 (Ky. 1988). “” KRS 216B.040(2)(a)2.a. mandates that the Certificate of Need and Licensure Board “shall .”
— Ky. Rev. Stat. § 216B.040(l)(a) — 1 case
ACSR, Inc. v. Cabinet for Health Servs., 32 S.W.3d 96 (Ky. Ct. App. 2000). “015(9) and (13), KRS 216B.040, KRS 216B.095, and 900 KAR 6:050.”
— Ky. Rev. Stat. § 216B.040(l)(d) — 1 case
Humana of Kentucky, Inc. v. NKC Hospitals, Inc., 751 S.W.2d 369 (Ky. 1988). “” KRS 216B.040(2)(a)2.a. mandates that the Certificate of Need and Licensure Board “shall .”
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