No. 40809 (Amendment): Rule R414-508. Requirements for Transfer of Bed Licenses

(Amendment)

DAR File No.: 40809
Filed: 09/20/2016 04:02:17 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to add to the rule wording to clarify requirements for Section 26-18-505, which establishes requirements for the transfer of bed licenses.

Summary of the rule or change:

This amendment outlines requirements for a Medicaid nursing care facility program to transfer a bed license or Medicaid certification to another entity.

Statutory or constitutional authorization for this rule:

• Section 26-18-505

Anticipated cost or savings to:

the state budget:

There is no anticipated fiscal impact to the state budget because this amendment only clarifies requirements for the transfer of bed licenses.

local governments:

There is no anticipated fiscal impact to local governments because this amendment only clarifies requirements for the transfer of bed licenses.

small businesses:

There is no anticipated fiscal impact to small businesses because this amendment only clarifies requirements for the transfer of bed licenses.

persons other than small businesses, businesses, or local governmental entities:

There is no anticipated fiscal impact to Medicaid providers and to Medicaid clients because this amendment only clarifies requirements for the transfer of bed licenses.

Compliance costs for affected persons:

Facilities that wish to transfer beds and those receiving beds are required to file written information with the Department to assure that the statute is complied with and persons with an interest in the current facility have consented to the transfer. It is expected that the cost of these filings for each facility will be minimal. Only facilities that choose to transfer beds will be required to report.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is no fiscal impact on business because it clarifies existing requirements and affects only facilities that choose to transfer beds.

Joseph K. Miner, MD, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Health
Health Care Financing, Coverage and Reimbursement Policy
CANNON HEALTH BLDG
288 N 1460 W
SALT LAKE CITY, UT 84116-3231

Direct questions regarding this rule to:

• Craig Devashrayee at the above address, by phone at 801-538-6641, by FAX at 801-538-6099, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2016

This rule may become effective on:

11/21/2016

Authorized by:

Joseph Miner, Executive Director

RULE TEXT

R414. Health, Health Care Financing, Coverage and Reimbursement Policy.

R414-508. Requirements for Transfer of Bed Licenses.

R414-508-1. Introduction and Authority.

(1) This rule implements requirements that a Medicaid certified nursing care facility program must meet to transfer licensed bed capacity for Medicaid certified beds to another entity.

(2) Sections 26-18-3, 26-18-5, and 26-18-505 authorize this rule.

 

R414-508-2. Definitions.

As used in this rule:

(1) "Bureau of Health Facility Licensing, Certification and Resident Assessment" (BHFLCRA) within the Department of Health is the entity that evaluates nursing care facilities to comply with state and federal regulations.

(2) "Bed License" is the state authorization given by BHFLCRA to provide nursing care facility services to an individual resident. BHFLCRA only issues licenses to a nursing care facility program to provide services for several individuals. The number of individuals for which a nursing care facility program can provide service equals the total licensed beds held by the licensee.

(3) "Current Owner" is any one of or combination of the following: owner of a building from which a nursing care facility program operates, owner of land on which a nursing care facility program operates, owner of a nursing care facility program licensed by the BHFLCRA, owner of Medicaid certification, lessor of the building, lessor of the land, mortgagor of the building, mortgagor of the land, the management team responsible for executing the operations of a nursing care facility program, a holder of a lien security interest in the land, a holder of a lien security interest in the building, and a holder of a lien security interest in the business operation.

(4) "Medicaid Certification" is the authorization to provide services outlined in the Medicaid State Plan in accordance with Section R414-27-1;

(5) "Transfer" is a change of ownership due to sale, lease, or mortgage.

(6) "Transfer Agreement" is a contract for a transfer of bed licenses.

(7) "Transferor" is the entity or nursing care facility program transferring one or more Medicaid beds to another entity or nursing care facility program.

(8) "Transferee" is the entity or nursing care facility program receiving one or more Medicaid beds from the Transferor.

 

R414-508-3. Bed License Transfer Requirements for the Transferor.

(1) A nursing care facility program [must]shall meet the requirements of [Section]Rule R414-27 to fulfill the transfer requirements found in Subsection 26-18-505(2).

(2) Pursuant to Subsection 26-18-505(2), a nursing care facility program [must]shall demonstrate its intent to transfer bed licenses by providing written notice to the Division of [Health Care]Medicaid and Health Financing [30 calendar days before the effective date of the transfer under the agreement.]in accordance with timing specified in Section 26-18-505. The transferring nursing care facility program or entity shall use the " Notice of Medicaid Bed Transfer" form to request the transfer.[The notice must include the following:

(a) the number of bed licenses that the nursing care facility program intends to transfer;

(b) the effective date of the transfer;

(c) the identity and physical location of the entity receiving the transferred bed licenses;

(d) a notarized statement from all current owners acknowledging and consenting to the transfer of the bed licenses; and

(e) a request to de-license and de-certify the number of transferred licensed beds from the transferring nursing care facility as of the effective transfer date in the transfer agreement.]

(3) The nursing care facility program shall include all necessary information on the " Notice of Medicaid Bed Transfer" form . If the form or supporting documentation is deficient, the incomplete notice shall be returned to the requestor.

(4) The notice date shall be the postmark date of a complete " Notice of Medicaid Bed Transfer" form mailed to the Division of Medicaid and Health Financing.

 

R414-508-4. Bed License [Receiving]Transfer Requirements for the Transferee.

Pursuant to Subsection 26-18-505(3), an entity that receives bed licenses from a nursing care facility program must provide written notice to the Division of [Health Care]Medicaid and Health Financing in accordance with timing specified in Section 26-18-505. The receiving nursing care facility program or entity shall use the "Request for Medicaid Certification of Transferred Beds" form.[within 14 calendar days of seeking Medicaid certification. The notice must include the following:

(1) the total number of bed licenses for which it will seek Medicaid certification, which may not exceed the total number of bed licenses received multiplied by a conversion factor of 0.7 and rounded down to the lowest integer as provided in Subsection 26-18-505(3)(c); and

(2) the identity of the nursing care facility program from which the bed licenses were transferred.]

(1) The nursing care facility program shall include all necessary information on the " Request for Medicaid Certification of Transferred Beds" form . If the form or supporting documentation is deficient, the incomplete notice shall be returned to the requestor.

(2) The notice date shall be the postmark date of a complete "Request for Medicaid Certification of Transferred Beds" form mailed to the Division of Medicaid and Health Financing.

(3) If the receiving nursing care facility or entity receives bed licenses from more than one nursing care facility or entity and wants to have the multiple beds certified at the same time, the transferee shall complete a request form for each different transferring entity and submit the request forms at the same time.

 

R414-508-5. Expiration and Forfeiture of Bed Licenses.

Pursuant to Subsection 26-18-505([2]3), if the receiving entity does not obtain Medicaid certification within three years of the effective date of the transfer, the transferred bed licenses expire and the receiving entity forfeits the bed licenses available through the transfer. The transferring nursing care facility program does not regain any right to the transferred beds that have expired.

 

KEY: Medicaid

Date of Enactment or Last Substantive Amendment: [July 1, 2008]2016

Notice of Continuation: May 30, 2013

Authorizing, and Implemented or Interpreted Law: 26-1-3; 26-18-505

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