Current through Vol. 41, No. 13, March 15, 2024
The applicant shall provide proof of sufficient financial
resources to complete the acquisition and to maintain services and staffing
that meet licensure standards for at least twelve (12) months following
acquisition.
(1)
Financial proof
for acquisition. Proof of sufficient financial resources to complete the
acquisition shall be provided in the following forms, as applicable:
(A) For conventional, bank, seller-carried,
third party, or bond financing, a statement of the proposed principal amount,
interest rate and repayment terms, and that the applicant has access to the
required funds, signed under oath by a representative of the lending
institution, seller, third party, or authority;
(B) For equity financing:
(i) An attested balance sheet for the
acquiring party that is dated within the past twelve (12) months and that
reflects cash or cash equivalents sufficient to fund the project; or
(ii) A certificate of deposit or other proof
that funds are available and have not been pledged for some other
purpose.
(C) For
financing or other funding from or guaranteed by a third party that is not duly
authorized or chartered as a bank:
(i) An
attested balance sheet, certificate of deposit or other attested proof that is
dated within the past twelve (12) months for the third party, unless the third
party is a licensed insurer or surplus lines insurer, the United States of
America, a state of the United States of America, or an agency or
instrumentality thereof; and
(ii)
Copies of organizational documents and contracts necessary to substantiate the
relationship between the applicant and the third party.
(2)
Projected Budget.
Each application shall include a projected budget of revenues and expenses for
the first twelve (12) months of operation of the facility after the anticipated
issuance of the Certificate of Need. The Department may require the applicant
to justify the difference between the applicant's projected budget and the
facility's expenses and revenues as reported to the Oklahoma Health Care
Authority pursuant to 56 O.S. Section
2002
or OAC 317:30-5.
(3)
Balance
sheets. All balance sheets shall include a release authorizing the
Department to verify the financial information submitted in the certificate of
need application. The Department may make independent inquiry into the
financial condition of the applicant.
(4)
Financial proof for services and
staffing. To ensure the maintenance of services and staffing, the
applicant shall prove the availability of reserves equivalent to the average
monthly projected expenses, in addition to funds needed to complete the
acquisition. The amount of the average monthly expenses shall be calculated
based on a per-month average of the projected twelve-month budget of revenues
and expenses submitted with the application. Proof of the availability of
reserves shall conform to the following:
(A)
For reserves to be provided or maintained through letter of credit, line of
credit, or conventional, bank or bond financing:
(i) A statement of the proposed principal
amount, interest rate and repayment terms, and that the applicant has access to
the required funds, signed under oath by a representative of the lending
institution or authority;
(ii) A
statement of provisions for terminating or rescinding a letter of credit or
line of credit;
(B) For
reserves to be maintained through the applicant's equity or net worth:
(i) An attested balance sheet that is dated
within the past twelve (12) months for the acquiring party and that reflects
cash or cash equivalents sufficient to meet the one-month reserves requirement;
or
(ii) A certificate of deposit or
other proof that funds are available and have not been pledged for some other
purpose;
(C) For
reserves to be funded or guaranteed by a third party that is not duly
authorized or chartered as a bank:
(i) An
attested balance sheet, certificate of deposit or other attested proof that is
dated within the past twelve (12) months for the third party, unless the third
party is a licensed insurer or surplus lines insurer, the United States of
America, a state of the United States of America, or an agency or
instrumentality thereof; and
(ii)
Copies of organizational documents and contracts necessary to substantiate the
relationship between the applicant and the third party.
(5)
Attested
documents. For the purposes of this section, the term "attest" shall
have the meanings as defined in 59 O.S. Supp. 2004, Section 15.1A.
Amended at 12 Ok Reg
3065, eff 7-27-95; Amended at 14 Ok Reg 2261, eff 6-12-971; Amended at 18 Ok
Reg 2496, eff 6-25-01; Amended at 19 Ok Reg 2079, eff 6-27-02; Amended at 22 Ok
Reg 2414, eff 7-11-05
