Current through Register Vol. 51, No. 19, September 20, 2024
A. A
licensee shall have financial resources in accordance with this regulation in
order to:
(1) Satisfy obligations;
and
(2) Ensure at all times the
delivery of essential care and services, such as nursing, dietary services, or
utilities.
B. A licensee
shall notify the Secretary of significant adverse changes in financial
condition which reasonably could be anticipated to adversely affect the
delivery of essential care and services. These adverse changes include, but are
not limited to, the following situations:
(1)
The facility fails to maintain the facility's utilities or a quantity of
supplies, including nursing, dietary, pharmaceutical, or other care and service
supplies, sufficient to meet the needs of the residents;
(2) The facility is unable to meet its
employee payroll or benefits obligations;
(3) The license holder or entity legally
authorized to act on behalf of the license holder receives notice that a
judgment or tax lien of at least $5,000 has been filed, recorded, or levied
against the facility or any of the assets of the facility or the license holder
and the judgment or tax lien is not satisfied, or an appropriate extension has
not been obtained, within 30 days after receipt of the notice;
(4) A financial institution refuses to honor
facility-operation-related checks or other financial instruments issued by the
license holder or entity legally authorized to act on behalf of the license
holder, and:
(a) The cumulative amount of the
checks or financial instruments is $5,000 or more; and
(b) The checks or financial instruments are
not honored or replaced to the satisfaction of the holders of the instruments
within 10 working days after the holders have notified the license holder,
operator, administrator, manager, or the person authorized to issue the
instrument of the dishonored items;
(5) The license holder, or entity legally
authorized to act on behalf of the license holder fails to make timely payments
of any facility-related tax of at least $1,000, and fails to satisfy the tax
within 30 working days after the date the tax becomes delinquent;
(6) The license holder, owner of 25 percent
of the license holder's assets, or facility management company files a
voluntary bankruptcy petition, or a creditor files an involuntary bankruptcy
petition against the facility management company, license holder, or owner of
25 percent or greater of the license holder's assets;
(7) A court appoints a bankruptcy trustee for
the facility;
(8) A person seeking
appointment of a receiver for the facility files a petition for the appointment
of a receiver for the facility in any jurisdiction;
(9) The license holder, or person legally
authorized to act on behalf of the license holder is unable to meet conditions
of a facility-operation-related loan or material debt covenant unless the loan
or material debt covenant has been waived or cured, and that inability has led
to a recall by the issuing entity; or
(10) The license holder, or entity legally
authorized to act on behalf of the license holder, is delinquent on more than
$5,000 of facility-related contractual obligations or vendor contracts that
affect essential care and services for residents and has not cured the
delinquency within 10 working days after receipt of notice from the creditor or
creditors to pay the debt.
C. The license holder shall notify the
Secretary in writing of a significant adverse change in its financial condition
as required by §B of this regulation within 72 hours after the license
holder becomes aware of, or reasonably should have become aware of, the change
in its financial condition.
D. The
license holder's notice required by §B of this regulation shall include a
description of:
(1) The specific significant
adverse change in financial condition;
(2) How the significant adverse change in
financial condition affects or may affect the license holder's ability to
deliver essential care and services; and
(3) The actions the license holder has taken
to address the significant adverse change in financial condition.
E. The license holder shall fax,
email, or hand-deliver the notice required in §B of this regulation to the
Department's Office of Health Care Quality, and the notice shall be kept on
file with a copy of the delivery confirmation.
F. The license holder shall provide any other
information, unless prohibited under applicable laws, requested by the Office
of Health Care Quality to substantiate continued compliance with the
requirements of this regulation within 30 days after the request. Failure to
comply with the requirements of this regulation may result in the Secretary
imposing one or more sanctions, as appropriate, from Regulations .51-.58 of
this chapter against the facility.
G. The information submitted pursuant to
§D of this regulation is confidential and may not be disclosed without the
consent of the licensee.
H. Unless
disclosure of the information is otherwise prohibited by applicable law, the
provisions of §G of this regulation do not apply to:
(1) The holder of a license that has been
suspended or revoked; or
(2) The
use of information in:
(a) An administrative
proceeding initiated by the Department; or
(b) A judicial proceeding.
