H.B. 445 Enrolled

1

NURSING HOME AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Merlynn T. Newbold
5 Senate Sponsor: Sheldon L. Killpack
6
7 LONG TITLE
8 General Description:
9 This bill amends the Long-term Care Facility Medicaid Certification part of the Medical
10 Assistance chapter of the Health Code.
11 Highlighted Provisions:
12 This bill:
13 . permits a Medicaid nursing care facility program to transfer or sell a license for a
14 Medicaid bed to another entity;
15 . establishes certain requirements that must be met to transfer a license for a Medicaid
16 bed; and
17 . reduces the total number of licensed Medicaid beds in the state by applying a
18 conversion factor to the licenses for Medicaid certified beds that are transferred.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 ENACTS:
25 26-18-505, Utah Code Annotated 1953
26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 26-18-505 is enacted to read:
29 26-18-505. Authorization to sell or transfer licensed Medicaid beds -- Duties of

30 tranferer -- Duties of transferee -- Duties of division.
31 (1) This section provides a method to transfer the license for a Medicaid bed from one
32 nursing care facility program to another entity that is in addition to the authorization to transfer
33 under Section 26-18-503 .
34 (2) (a) A nursing care facility program may transfer or sell one or more of its licenses
35 for Medicaid beds in accordance with Subsection (2)(b) if:
36 (i) at the time of the transfer, and with respect to the license for the Medicaid bed that
37 will be transferred, the nursing care facility program that will transfer the Medicaid license
38 meets all applicable regulations for Medicaid certification;
39 (ii) 30 days prior to the transfer, the nursing care facility program gives a written
40 assurance to the director and to the transferee in accordance with Subsection 26-18-503 (4); and
41 (iii) 30 days prior to the transfer, the nursing care facility program that will transfer the
42 license for a Medicaid bed notifies the division in writing of:
43 (A) the number of bed licenses that will be transferred;
44 (B) the date of the transfer; and
45 (C) the identity and location of the entity receiving the transferred licenses.
46 (b) A nursing care facility program may transfer or sell one or more of its licenses for
47 Medicaid beds to:
48 (i) a nursing care facility program that has the same owner or successor in interest of
49 the same owner;
50 (ii) a nursing care facility program that has a different owner; or
51 (iii) an entity that intends to establish a nursing care facility program.
52 (3) An entity that receives or purchases a license for a Medicaid bed:
53 (a) may receive a license for a Medicaid bed from more than one nursing care facility
54 program;
55 (b) within 14 days of seeking Medicaid certification of beds in the nursing care facility
56 program, give the division notice of the total number of licenses for Medicaid beds that the
57 entity received and who it received the licenses from;

58 (c) may only seek Medicaid certification for the number of licensed beds in the nursing
59 care facility program equal to the total number of licenses for Medicaid beds received by the
60 entity, multiplied by a conversion factor of .7, and rounded down to the lowest integer;
61 (d) does not have to demonstrate need for the Medicaid licensed beds under Subsection
62 26-18-503 (5);
63 (e) must meet the standards for Medicaid certification other than those in Subsection
64 26-18-503 (5), including personnel, services, contracts, and licensing of facilities under Chapter
65 21, Health Care Facility Licensing and Inspection Act; and
66 (f) must obtain Medicaid certification for the licensed Medicaid beds within three years
67 of the date of transfer as documented under Subsection (2)(a)(iii)(B).
68 (4) The conversion formula required by Subsection (3)(c) shall be calculated:
69 (a) when the nursing care facility program applies to the Department for Medicaid
70 certification of the licensed beds; and
71 (b) based on the total number of licenses for Medicaid beds transferred to the nursing
72 care facility at the time of the request for Medicaid certification.
73 (5) (a) When the division receives notice of a transfer of a license for a Medicaid bed
74 under Subsection (2)(a)(iii)(A), the division shall reduce the number of licenses for Medicaid
75 beds at the transferring nursing care facility:
76 (i) equal to the number of licenses transferred; and
77 (ii) effective on the date of the transfer as reported under Subsection (2)(a)(iii)(B).
78 (b) For purposes of Section 26-18-502 , the division shall approve Medicaid certification
79 for the receiving entity:
80 (i) in accordance with the formula established in Subsection (3)(c); and
81 (ii) if:
82 (A) the nursing care facility seeks Medicaid certification for the transferred licenses
83 within the time limit required by Subsection (3)(f); and
84 (B) the nursing care facility program meets other requirements for Medicaid
85 certification under Subsection (3)(e).

86 (c) A license for a Medicaid bed may not be approved for Medicaid certification
87 without meeting the requirements of Sections 26-18-502 and 26-18-503 if:
88 (i) the license for a Medicaid bed is transferred under this section but the receiving
89 entity does not obtain Medicaid certification for the licensed bed within the time required by
90 Subsection (3)(f); or
91 (ii) the license for a Medicaid bed is transferred under this section but the license is no
92 longer eligible for Medicaid certification as a result of the conversion factor established in
93 Subsection (3)(c).