R414-508. Requirements for Transfer of Bed Licenses  


R414-508-1. Introduction and Authority
Latest version.

  (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
Latest version.

  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
Latest version.

  (1) A nursing care facility program shall meet the requirements of 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 shall demonstrate its intent to transfer bed licenses by providing written notice to the Division of Medicaid and Health Financing 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.

  (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 Transfer Requirements for the Transferee
Latest version.

  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 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.

  (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
Latest version.

  Pursuant to Subsection 26-18-505(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.