R432-2-13. New License Required

  (1) A prospective licensee shall submit a Request for Agency Action/License Application, fees, and required documentation for a new license at least 30 days before any of the following proposed or anticipated changes occur:

  (a) occupancy of a new facility;

  (b) change of ownership; or

  (c) change in license category.

  (2) Before the Department may issue a change of ownership license, the prospective licensee shall provide documentation that:

  (a) all patient care records, personnel records, staffing schedules, quality assurance committee minutes, in-service program records, and other documents required by applicable rules remain in the facility and have been transferred to the custody of the new licensee.

  (b) the existing policy and procedures manual or a new manual has been adopted by the facility governing body before change of ownership occurs.

  (c) new contracts for professional or other services not provided directly by the facility have been secured.

  (d) new transfer agreements have been drafted and signed.

  (e) written documentation exists of clear ownership or lease of the facility by the new owner.

  (f) the licensee shall provide the new owner with a written accounting, prepared by an independent certified public accountant, of all patient funds being transferred, and obtain a written receipt for those funds from the new owner.

  (g) Nursing Care and Small Health Care Facilities shall provide a certificate from the Division of Medicaid and Health Financing's Bureau of Financial Services noting the current owner has no outstanding monies owed to the division.

  (3) A prospective licensee is responsible for all uncorrected rule violations and deficiencies including any current plan of correction submitted by the previous licensee unless a revised plan of correction, approved by the Department, is submitted by the prospective licensee before the change of ownership becomes effective.

  (4) If a license is issued to the new owner the previous licensee shall return his license to the Department within five days of the new owner's receipt of the license.

  (5) Upon verification that the facility is in compliance with all applicable licensing rules, the Department shall issue a new license effective the date compliance is determined as required by R432-2-9.