DAR File No. 42396

Health, Family Health and Preparedness, Licensing

Section R432-2-13

New License Required

Notice of Proposed Rule

(Amendment)

DAR File No.: 42396
Filed: 12/18/2017 09:23:53 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule amendment is to add a requirement for Nursing Care and Small Health Care Facilities to obtain a certificate from the Division of Medicaid and Health Financing�s Bureau of Financial Services noting that no outstanding monies are owed prior to completing a change of ownership. The Health Facility Committee reviewed and approved this rule amendment on 11/08/2017.

Summary of the rule or change:

The purpose of this rule amendment is to add a requirement for Nursing Care and Small Health Care Facilities to obtain a certificate from the Division of Medicaid and Health Financing�s Bureau of Financial Services noting that no outstanding monies are owed prior to a change of ownership license being issued to the new owner.

Statutory or constitutional authorization for this rule:

• Title 26, Chapter 21

Anticipated cost or savings to:

the state budget:

After conducting a thorough analysis, it was determined that this proposed rule amendment will not change how the Division of Medicaid and Health Financing�s Bureau of Financial Services processes a change of ownership in Utah. In the previous 3 years, there have been an estimated 30 Nursing Care and Small Health Care Facilities that have completed a change of ownership. The Division of Medicaid and Health Financing�s Bureau of Financial Services has determined that they can handle that volume and issue the required certificate without incurring an additional cost. In addition, of those 30 change of ownerships, only one facility owed the Division of Medicaid and Health Financing�s Bureau of Financial Services outstanding monies and the monies owed was paid by the new owner. Therefore, the proposed rule is not expected to impact state government revenues or expenditures.

local governments:

Local governments city business licensing requirements were considered. This proposed rule amendment will not change how many nursing care and small health care facilities can be licensed in Utah, therefore, the proposed rule is not expected to impact local government revenues or expenditures.

small businesses:

After conducting a thorough analysis, it was determined that there are 20 small businesses that this proposed rule will apply to. However, this rule amendment will not result in a fiscal impact to the small businesses budget because it does not impose additional costs, it only requires them to settle any debts owed to Medicaid prior to a change of ownership.

persons other than small businesses, businesses, or local governmental entities:

After conducting a thorough analysis, it was determined that there are 103 non-small businesses that this proposed rule will apply to. However, this rule amendment will not result in a fiscal impact to the non-small businesses budget because it does not impose additional costs, it only requires them to settle any debts owed to Medicaid prior to a change of ownership.

Compliance costs for affected persons:

After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to affected persons because this amendment does not add any compliance rules that would not impose additional costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact to businesses.

Joseph Miner, MD, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Health
Family Health and Preparedness, Licensing
3760 S HIGHLAND DR
SALT LAKE CITY, UT 84106

Direct questions regarding this rule to:

• Joel Hoffman at the above address, by phone at 801-273-2804, by FAX at 801-274-0658, or by Internet E-mail at jhoffman@utah.gov
• Carmen Richins at the above address, by phone at 801-273-2802, by FAX at 801-274-0658, or by Internet E-mail at carmenrichins@utah.gov

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:

02/14/2018

This rule may become effective on:

02/21/2018

Authorized by:

Joseph Miner, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2018	FY 2019	FY 2020
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Small Businesses

Small businesses (fewer than 50 employees): After conducting a thorough analysis, it was determined that there are 20 small businesses that this proposed rule will apply to. However, this rule amendment will not result in a fiscal impact to the small businesses budget because it does not impose additional costs, it only requires them to settle any debts owed to Medicaid prior to a change of ownership.

 

Appendix 3: Regulatory Impact to Non - Small Businesses

Businesses, individuals, local governments, and persons that are not small businesses: After conducting a thorough analysis, it was determined that there are 103 non-small businesses that this proposed rule will apply to. However, this rule amendment will not result in a fiscal impact to the non-small businesses budget because it does not impose additional costs, it only requires them to settle any debts owed to Medicaid prior to a change of ownership.

 

 

R432. Health, Family Health and Preparedness, Licensing.

R432-2. General Licensing Provisions.

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 [new]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.

([3]f) [Upon sale or other transfer of ownership,]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.

([4]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.

([5]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.

([6]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.

 

KEY: health care facilities

Date of Enactment or Last Substantive Amendment: [2017]2018

Notice of Continuation: August 12, 2013

Authorizing, and Implemented or Interpreted Law: 26-21-9; 26-21-11; 26-21-12; 26-21-13