Relating to nursing facility change of ownership applications

This bill relates to nursing facility (facility) change of ownership applications. The bill requires the department of inspections, appeals, and licensing (DIAL), during review of an application to change the ownership of a facility, to determine the potential impact on the health, safety, welfare, and rights of the residents, and to ensure that a new owner will guarantee the safety of and attain the highest practicable physical, mental, and social well-being for each resident. The bill requires an applicant for a facility change of ownership (applicant) to provide information and documentation as detailed in the bill to verify the applicant’s financial state and history of compliance with state, federal, and other jurisdictions’ laws and regulations. Under current law, DIAL may require an applicant to create an escrow account sufficient to sustain financial operations of the applicant’s nursing facility for a period of not less than two months. The bill changes this requirement to a period of not less than four months. The bill requires DIAL to review the information provided in an application for change of ownership of a facility to determine whether the terms of the sale or lease of a facility would weaken the facility’s financial state long-term, or present a public health risk. The bill prohibits DIAL from approving to a change of ownership application that DIAL determined would weaken the facility’s financial state long-term, or present a public health risk. The bill requires DIAL, upon completion of a review of a change of ownership application, to publish a report on DIAL’s internet site that explains the rationale for DIAL’s decision. The report must, at a minimum, include a comparative analysis of past decisions.