(a) Standards.

1. (1) The following is the standard to be used in the review of additional or expanded home health agencies.

2. (2)

   1. (A) The methodology is based on the following assumptions:

(i) More populated areas tend to have a higher population density; and

1. (ii) Areas with higher population density can be served with fewer staff due to reduced travel time.

   1. (B) Thus, it will take fewer staff to serve the same number of patients in a metropolitan area than it would to serve patients in a rural area.
2. (3) An area* with up to thirty thousand (30,000) population may be approved for a maximum of two (2) agencies.
3. (4) A county with thirty thousand (30,000) to fifty thousand (50,000) population may be approved for a maximum of three (3) agencies.
4. (5) A county with fifty thousand (50,000) to seventy-five thousand (75,000) population may be approved for a maximum of four (4) agencies.
5. (6) A county with seventy-five thousand (75,000) to one hundred and ten thousand (110,000) population may be approved for a maximum of five (5) agencies.
6. (7) A county with one hundred and ten thousand (110,000) to one hundred and fifty thousand (150,000) population may be approved for a maximum of six (6) agencies.
7. (8) A county with one hundred and fifty thousand (150,000) to two hundred and fifty thousand (250,000) population may be approved for a maximum of seven (7) agencies.
8. (9) A county with two hundred and fifty thousand (250,000) to four hundred thousand (400,000) population may be approved for a maximum of eight (8) agencies.
9. (10) A county with four hundred thousand (400,000) and over population would be approved for a maximum of one (1) Health Services Permit Agency per every fifty thousand (50,000) population.

(b) Exception. Approvals may be granted when the methodology does not show a need if the applicant offers documentation to prove that existing agencies are not meeting the needs of the service area population.

1. (c) Application for a change in licensure category.
2. (1) An agency with a "B" license that applies for a permit of approval to proceed with obtaining an "A" license will have to meet published criteria including the standard of need.
3. (2) Such approval may not exceed the standard of need unless the applicant has provided evidence to support an exception as noted in subsection (b) of this section.