§ 23-17-5.1 - Additional information required of nursing facility applicants for initial licensure or change of ownership.
SECTION 23-17-5.1
§ 23-17-5.1 Additional informationrequired of nursing facility applicants for initial licensure or change ofownership. – (a) The department shall adopt regulations regarding information to be providedby applicants for the initial licensure of or change of ownership of a nursingfacility to include information relating to the background and qualificationsof the applicant or proposed license holder. For purposes of this section,applicants must meet a financial threshold that shall include, as a minimum,that the applicant or proposed license holder shall have sufficient resourcesto operate the nursing facility at licensed capacity for thirty (30) days,evidenced by an unencumbered line of credit, a joint escrow account establishedwith the department, or a performance bond secured in favor of the state or asimilar form of security satisfactory to the department. The department mayalso require background information to be submitted relating to any partner,officer, director, manager or member (if member-managed) of the applicant orproposed license holder, or information relating to each person having abeneficial ownership interest of five percent (5%) or more in the applicant orproposed license holder.
(b) In reviewing information required by subsection (a), thedepartment may require the applicant or proposed license holder to file a swornaffidavit substantiating the validity of any submitted information as requiredby the department to substantiate a satisfactory compliance history relating toeach state or other jurisdiction in which the applicant, proposed licenseholder or any other person described by subsection (a) operated a nursingfacility at any time during the five-year period preceding the date on whichthe application is made. The department shall determine what constitutes asatisfactory compliance history. The department may also require the applicantor proposed license holder to file information relating to the currentfinancial condition of the applicant, proposed license holder or any otherperson described by subsection (a) and the history of the financial conditionof the applicant, proposed license holder or any other person described bysubsection (a) with respect to a facility operated in another state orjurisdiction at any time during the five-year period preceding the date onwhich the application is made.
(c) In addition to the information required to be provided insubsections (a) and (b) above, the department shall gather information fromstate departments and agencies relating to the background and qualifications ofthe applicant, proposed license holder, or any person having a five percent(5%) or more beneficial ownership interest.
(d) Any applicant seeking a nursing facility license whointends to contract with a management company to assist with that facility'soperations shall file a copy of the proposed management contract with thedepartment or provide information to the department regarding the managementservices to be provided by the management company that indicate the managementfees to be paid and areas of control for which the management company shall beresponsible. All applications for initial licensure and change of ownershipshall include copies of any proposed management contracts and information aboutmanagement fee arrangements as well as identification of every person having anownership of five percent (5%) or more in the management company, if themanagement company is a corporation or limited liability company, andidentification of every general or limited partner if the management company isa general partnership or a limited partnership.