The Department of Health and Human Services is designated as the State Health Planning and Development Agency for the State of North Carolina and has all of the following powers and duties:
(1) Establish standards and criteria or plans required to carry out the provisions and purposes of this Article and to adopt rules pursuant to Chapter 150B of the General Statutes to carry out the purposes and provisions of this Article.
(2) Adopt, amend, and repeal rules, as may be required by the federal government for grants-in-aid for health service facilities and health planning that may be made available by the federal government. This section shall be liberally construed in order that the State and its citizens may benefit from these grants-in-aid.
(3) Define, by rule, procedures for submission of periodic reports by persons or health service facilities subject to agency review under this Article.
(4) Develop policy, criteria, and standards for health service facilities planning. The Department shall conduct statewide registration and inventories of and make determinations of need for health service facilities, health services as specified in G.S. 131E-176(16)f., and equipment as specified in G.S. 131E-176(16)f1., including consideration of adequate geographic location of equipment and services; and develop a State Medical Facilities Plan.
(5) Implement, by rule, criteria for project review.
(6) Grant, deny, or withdraw a certificate of need and impose sanctions provided for by this Article.
(7) Solicit, accept, hold, and administer on behalf of the State any grants or devises of money, securities, or property to the Department for use by the Department in the administration of this Article.
(8) Repealed by Session Laws 1987, c. 511, s. 1.
(9) Collect fees for submitting applications for certificates of need.
(10) Review all records in any recording medium of any person or health service facility subject to agency review under this Article that pertain to construction and acquisition activities, staffing, or costs and charges for patient care, including but not limited to, construction contracts, architectural contracts, consultant contracts, purchase orders, cancelled checks, accounting and financial records, debt instruments, loan and security agreements, staffing records, utilization statistics, and any other records the Department deems reasonably necessary to determine compliance with this Article.
The Secretary of Health and Human Services has final decision-making authority with regard to all functions described in this section. (1977, 2nd Sess., c. 1182, s. 2; 1981, c. 651, s. 1; 1983, c. 713, s. 96; c. 775, ss. 1, 6; 1987, c. 511, s. 1; 1991, c. 692, s. 2; 1993, c. 7, s. 3; c. 383, ss. 2, 3; 1997-443, s. 11A.118(a); 2007-323, s. 30.4(a); 2011-284, s. 90; 2025-25, s. 39.2(c).)
Notes of Decisions
Frye Reg'l Med. Ctr., Inc. v. Hunt, 510 S.E.2d 159 (N.C. 1999).
· cites it 10× “Plaintiff argues that under N.C.G.S. § 131E-177, the final decision-making power rests with the head of the Department of Human Resources.”
Cnty. of Catawba v. Frye Reg'l Med. Ctr., Inc., 2014 NCBC 27 (N.C. Bus. Ct. 2014).
· cites it 3× “N.C.G.S. § 131E-177 (2014). {14} In May 2004, Frye applied to DHHS for CONs to convert Tate and Viewmont into freestanding ambulatory surgical centers (“ASCs”).”
Total Care, Inc. v. Dep't of Human Resources, 393 S.E.2d 338 (N.C. Ct. App. 1990).
· cites it 2× “G.S. 131E-177. Under G.S. 131E-178(a), a CON is required prior to offering or developing a “new institutional health service.”
Duke Univ. Health Sys. Inc. v. N.C. Dep't of Health & Hum. Servs. (N.C. Ct. App. 2024).
· cites it 2× “While an ALJ may generally “establish standards and criteria or plans required to carry out the provisions and purposes of [a CON]”, N.C. Gen. Stat. § 131E-177(1) (2023), the ALJ may not utilize requirements that conflict with what has been -2- DUKE UNIV.”
Mobile Imaging Partners of N.C. (N.C. Ct. App. 2021).
“§ 131E-177(4) (2019). Petitioner’s argument, asserting the ALJ and DHHS misinterpreted its own meaning of “statewide,” would require us to conclude DHHS abused its own discretion by determining InSight’s application met DHHS’ own meaning of “statewide.”
Mobile Imaging Partners of N.C. (N.C. Ct. App. 2021).
“§ 131E-177(4) (2019). Petitioner’s argument, asserting the ALJ and DHHS misinterpreted its own meaning of “statewide,” would require us to conclude DHHS abused its own discretion by determining InSight’s application met DHHS’ own meaning of “statewide.”
— N.C. Gen. Stat. § 131E-177(1) — 6 cases
Duke Univ. Health Sys. Inc. v. N.C. Dep't of Health & Hum. Servs. (N.C. Ct. App. 2024).
“While an ALJ may generally “establish standards and criteria or plans required to carry out the provisions and purposes of [a CON]”, N.C. Gen. Stat. § 131E-177(1) (2023), the ALJ may not utilize requirements that conflict with what has been -2- DUKE UNIV.”
— N.C. Gen. Stat. § 131E-177(4) — 4 cases
Frye Reg'l Med. Ctr., Inc. v. Hunt, 510 S.E.2d 159 (N.C. 1999).
“Plaintiff argues that under N.C.G.S. § 131E-177, the final decision-making power rests with the head of the Department of Human Resources.”
Mobile Imaging Partners of N.C. (N.C. Ct. App. 2021).
“§ 131E-177(4) (2019). Petitioner’s argument, asserting the ALJ and DHHS misinterpreted its own meaning of “statewide,” would require us to conclude DHHS abused its own discretion by determining InSight’s application met DHHS’ own meaning of “statewide.”
Mobile Imaging Partners of N.C. (N.C. Ct. App. 2021).
“§ 131E-177(4) (2019). Petitioner’s argument, asserting the ALJ and DHHS misinterpreted its own meaning of “statewide,” would require us to conclude DHHS abused its own discretion by determining InSight’s application met DHHS’ own meaning of “statewide.”
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