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<section article="ghg" article_name="Health - General" number="19-120.2" title_number="19" title_name="Health Care Facilities" subtitle_number="1" subtitle_name="Health Care Planning and Systems Regulation">
  <level label="a">
    <level label="1">
      <text>In this section the following words have the meanings indicated.</text>
    </level>
    <level label="2">
      <text>“Executive Director” means the Executive Director of the Commission.</text>
    </level>
    <level label="3">
      <text>“Nursing home” has the meaning stated in § 19–1401 of this title.</text>
    </level>
    <level label="4">
      <text>“Request for acquisition” means a request for the Commission to approve the acquisition of a nursing home.</text>
    </level>
  </level>
  <level label="b">
    <text>A person shall provide notice to the Commission at least 30 days before the closing of a change of ownership of a nursing home that:</text>
    <level label="1">
      <text>Involves at least a 5% transfer in ownership interest; and</text>
    </level>
    <level label="2">
      <text>Is not an acquisition that requires approval under subsection (c) of this section.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>This subsection does not apply to an acquisition that involves only changes of ownership interests among existing owners of a nursing home.</text>
    </level>
    <level label="2">
      <text>At least 60 days before the closing date of the acquisition of a nursing home, a person shall:</text>
      <level label="i">
        <text>Submit to the Commission a request for acquisition; and</text>
      </level>
      <level label="ii">
        <text>Provide notice to the residents, resident representatives, and employees of the nursing home that:</text>
        <level label="1">
          <text>The request for acquisition was submitted to the Commission; and</text>
        </level>
        <level label="2">
          <text>There will be an opportunity to submit comments in accordance with subsection (f) of this section.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>The Executive Director shall review a completed request for acquisition within 45 days after receiving the completed request from the applicant.</text>
    </level>
    <level label="2">
      <text>The Executive Director, in consultation with the Secretary or the Secretary’s designee, may:</text>
      <level label="i">
        <text>Approve the acquisition;</text>
      </level>
      <level label="ii">
        <text>Approve the acquisition with conditions;</text>
      </level>
      <level label="iii">
        <text>Deny the acquisition; or</text>
      </level>
      <level label="iv">
        <text>Refer the request for acquisition to the Commission for a final decision.</text>
      </level>
    </level>
  </level>
  <level label="e">
    <text>To approve a request submitted under subsection (c) of this section, the Executive Director must find that the acquisition:</text>
    <level label="1">
      <text>Is consistent with the State Health Plan; and</text>
    </level>
    <level label="2">
      <text>Subject to subsection (f) of this section, is in the public interest.</text>
    </level>
  </level>
  <level label="f">
    <text>In determining whether an acquisition of a nursing home is in the public interest, the Executive Director shall:</text>
    <level label="1">
      <text>Solicit and accept comments from individuals who:</text>
      <level label="i">
        <text>Reside in the nursing home;</text>
      </level>
      <level label="ii">
        <text>Have family members who reside in the nursing home; or</text>
      </level>
      <level label="iii">
        <text>Are employees of the nursing home; and</text>
      </level>
    </level>
    <level label="2">
      <text>Consult with the Attorney General on whether the acquisition raises public interest concerns.</text>
    </level>
  </level>
  <level label="g">
    <text>If the Executive Director refers a request for acquisition to the Commission under subsection (d)(2)(iv) of this section, the Commission shall use the criteria specified in subsections (e) and (f) of this section and regulations adopted by the Commission to make a final decision within 60 days after receiving the completed request from the applicant.</text>
  </level>
  <level label="h">
    <text>If the Executive Director denies a request for acquisition or imposes a condition on the approval of the acquisition, a person that is a party to the acquisition may submit a written request for the Commission to review the decision in accordance with regulations adopted by the Commission.</text>
  </level>
  <level label="i">
    <level label="1">
      <text>A decision of the Commission under subsection (g) or (h) of this section shall be a final decision for the purpose of judicial review.</text>
    </level>
    <level label="2">
      <text>A person that is a party to the acquisition may take a direct judicial appeal within 30 days after the Commission makes the final decision.</text>
    </level>
    <level label="3">
      <text>The Commission shall send each final decision to the Secretary, the Secretary of Aging, the Office of Health Care Quality, the Office of the Attorney General, and the State Long–Term Care Ombudsman.</text>
    </level>
  </level>
  <level label="j">
    <level label="1">
      <text>On or before July 1 immediately following the acquisition of a nursing home and each year for 3 years thereafter, the person that acquired the nursing home shall submit a report to the Commission in accordance with regulations adopted by the Commission.</text>
    </level>
    <level label="2">
      <text>The Commission shall provide the report required under paragraph (1) of this subsection to the Secretary, the Secretary of Aging, the Office of Health Care Quality, the Office of the Attorney General, and the State Long–Term Care Ombudsman.</text>
    </level>
  </level>
  <level label="k">
    <level label="1">
      <text>The Commission shall adopt regulations through an update to the State Health Plan for Facilities and Services to carry out the provisions of this section.</text>
    </level>
    <level label="2">
      <text>The regulations adopted under this subsection shall:</text>
      <level label="i">
        <text>Require the person that acquired ownership of a nursing home to:</text>
        <level label="1">
          <text>Reduce the number of resident rooms in the nursing home that contain more than two beds in accordance with standards established by the Commission; or</text>
        </level>
        <level label="2">
          <text>Receive a waiver from the requirement established under item 1 of this item from the Executive Director in accordance with standards established by the Commission;</text>
        </level>
      </level>
      <level label="ii">
        <level label="1">
          <text>If necessary, allow the person that acquired ownership of a nursing home to temporarily delicense beds for at least 3 years immediately following the acquisition to reduce the number of resident rooms that contain more than two beds; and</text>
        </level>
        <level label="2">
          <text>Authorize the Commission to extend the period the beds are temporarily delicensed beyond 3 years for good cause shown, including demonstrated progress toward eliminating multibedded rooms by expanding the existing facility or transferring the beds to another facility within a merged asset system in the same jurisdiction;</text>
        </level>
      </level>
      <level label="iii">
        <text>Establish standards for the evaluation of the quality of the nursing homes currently or previously owned, whether in the State or outside the State, by the person that submitted a request for acquisition; and</text>
      </level>
      <level label="iv">
        <text>Subject to paragraph (3) of this subsection, establish criteria for the Executive Director and the Commission to consider when making a decision regarding a request for acquisition.</text>
      </level>
    </level>
    <level label="3">
      <text>The criteria established by the Commission under paragraph (2)(iv) of this subsection shall require that the Commission take into consideration whether any nursing home currently or previously owned, within or outside the State, by the person submitting the request, for the period of 3 years immediately preceding the submission of the request:</text>
      <level label="i">
        <text>Maintained a quality assessment and assurance committee that met at least quarterly;</text>
      </level>
      <level label="ii">
        <text>Was the subject of an enforcement action, a special focus facility designation, or a deficiency involving serious or immediate threat, actual harm, or immediate jeopardy to a resident; or</text>
      </level>
      <level label="iii">
        <text>Was the subject of a lawsuit judgment, or an arbitration finding, following a complaint filed by a resident, resident representative, or a government agency.</text>
      </level>
    </level>
  </level>
</section>
