§ 23-17.11-3 - Definitions.
SECTION 23-17.11-3
§ 23-17.11-3 Definitions. – As used in this chapter:
(1) "Department" means the department of health.
(2) "Director" means the director of the department of health.
(3) "Facility" means any nursing facilities as defined inchapter 17 of this title and the regulations adopted under chapter 17 of thistitle.
(4) "Person" means any individual, trust or estate,partnership, limited liability company, limited liability partnership,corporation (including associations, joint stock companies and insurancecompanies), state or political subdivision or instrumentality of a state.
(5) "Resident" means a person who resides in a nursingfacility as defined in chapter 17 of this title and the regulations adoptedpursuant to chapter 17 of this title.
(6) "Mismanagement" means the director's determination that afacility lacks financial solvency or has demonstrated the inability to correctpatterns of deficiencies in resident care or management. These deficiencies maybe evidenced by excessive turnover and instability in the administration andclinical leadership, a consistent pattern of maintaining inadequate direct careand support service personnel or a demonstrated failure to implement a plan ofcorrection and/or remediation as prescribed by the department.
(7) "Financial solvency" shall be defined by the departmentthrough regulation. Such regulation shall develop in consultation with thedepartment of human services. In developing the definition, the departmentshall consider whether any of the following criteria should be included in thedefinition of financial solvency and whether other criteria should apply:
(i) Sufficient liquid resources, including anticipatedaccounts receivable due from providing care to residents to operate thefacility for thirty (30) days;
(ii) Current to agreed-upon payment terms for all materialfinancial obligations of the facility including, but not limited to, mortgagepayments, lease payments, management contracts, payments to employees and forall employee benefit programs, payments for food and other resident supplies,payments for utilities and payments of all state and federal taxes;
(iii) Free from lien resulting from default by the facility;
(iv) No combination of current indebtedness totaling morethan one hundred twenty (120) days of total facility revenues;
(v) Significant operating losses for two (2) successive years;
(vi) Frequent requests for advances on Medicaid reimbursement;
(vii) Unfavorable working capital ratios of assets toliabilities;
(viii) High proportion of accounts receivable more thanninety (90) days old;
(ix) Increasing accounts payable, unpaid taxes and/or payrollrelated costs;
(x) Minimal or decreasing equity and/or reserves; and/or
(xi) High levels of debt and high borrowing costs.
(8) "Controlling person" means any person or entity incontrol of a nursing facility directly or indirectly, including:
(i) In the case of a corporation or a limited liabilitycompany, or limited liability partnership, a person having a beneficialownership interest of five percent (5%) or more in the corporation, limitedliability company or limited liability partnership to which the facility islicensed;
(ii) In the case of a general partnership or limitedpartnership, any general partner;
(iii) In the case of a limited liability company, or limitedliability partnership any member;
(iv) A legal entity that operates or contracts with anotherperson for the operation of a nursing facility or an owner thereof;
(v) Each of the president, vice president, secretary andtreasurer of a corporation that is not exempt from taxation under § 501(a)of the United States Internal Revenue Code as an organization described in§ 501(c)(3) of such code; and
(vi) Such other ownership interest or relationship as may bedetermined by the director.