No. 31361 (New Rule): R414-508. Requirements for Transfer of Bed Licenses

DAR File No.: 31361
Filed: 05/01/2008, 03:54
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new rule is to implement H.B. 445 (2008), which establishes requirements for the transfer of bed licenses. (DAR NOTE: H.B. 445 (2008) is found at Chapter 219, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

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

State statutory or constitutional authorization for this rule:

Sections 26-18-3 and 26-18-505

Anticipated cost or savings to:

the state budget:

Nursing facilities have low occupancy currently. By allowing facilities to transfer beds and allowing up to 70% of those beds to be used elsewhere in the state, occupancy rates may go up. In addition, areas where there is a need for more beds may benefit. It is possible that this may reduce pressure to increase rates and be a savings for the state.

local governments:

Nursing facilities have low occupancy currently. By allowing facilities to transfer beds and allowing up to 70% of those beds to be used elsewhere in the state, occupancy rates may go up. In addition, areas where there is a need for more beds may benefit. It is possible that this may lower costs per bed for facilities and allow them to profitably operate at current rates.

small businesses and persons other than businesses:

Nursing facilities have low occupancy currently. By allowing facilities to transfer beds and allowing up to 70% of those beds to be used elsewhere in the state, occupancy rates may go up. In addition, areas where there is a need for more beds may benefit. It is possible that this may lower costs per bed for facilities and allow them to profitably operate at current rates.

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:

Pressure to increase reimbursement to Medicaid certified nursing facilities may be mitigated by this rule. The fiscal impact on business will be limited to those that choose to participate in a transfer. David N. Sundwall, MD, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division 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:

06/16/2008

This rule may become effective on:

06/23/2008

Authorized by:

David N. Sundwall, 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 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.

 

R414-508-3. Bed License Transfer Requirements.

(1) A nursing care facility program must meet the requirements of Section 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 demonstrate its intent to transfer bed licenses by providing written notice to the Division of Health Care Financing 30 calendar days before the effective date of the transfer under the agreement. 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.

 

R414-508-4. Bed License Receiving Requirements.

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 Financing 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.

 

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

Pursuant to Subsection 26-18-505(2), 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: 2008

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