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<regulation prefix="Regulation" num=".08" citation="COMAR 10.09.10.08" title_num="10" subtitle_num="09" chapter_num="10" heading="Interim Working Capital Fund.">
  <paragraph num="A.">
    <text>A provider may request an allotment from the Interim Working Capital Fund if the facility for which an allotment is requested has not had any of the following deficiencies cited in any survey conducted by the Office of Health Care Quality during the calendar year preceding the calculation of the allotment, using the scope and severity matrix found in the Centers for Medicare and Medicaid Services State Operations Manual for Survey and Certification, Part 7, §7400E:</text>
    <paragraph num="(1)">
      <text>Two or more “G” level deficiencies; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>One or more “H” or higher level deficiencies.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>A provider operating a facility with any of the deficiencies described in §A of this regulation may be eligible for an allotment if the facility has undergone an arm's length change of ownership, as determined by the Department, since the latest survey that resulted in the deficiencies.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The Department may deny an allotment from the Interim Working Capital Fund if the Department, based on sufficient information, concludes that the requesting provider is not able to repay the allotment on a timely basis.</text>
  </paragraph>
  <paragraph num="D.">
    <text>The maximum allotment for any provider shall be 0.015 times the total Medicaid payments to that provider in the prior State fiscal year.</text>
  </paragraph>
  <paragraph num="E.">
    <text>Recalculation.</text>
    <paragraph num="(1)">
      <text>In March of each year, the Department shall recalculate the maximum allotment based on Medicaid payments for the prior State fiscal year.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>If the recalculated maximum allotment is:</text>
      <paragraph num="(a)">
        <text>Less than the amount the provider carried over from the prior year, the provider shall repay the difference to the Department within 30 days of the date the Department provides notice that a repayment is due; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Greater than the amount carried over from the prior year, the provider may request the difference from the Department.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Revocation.</text>
    <paragraph num="(1)">
      <text>The Department may revoke the allotment based on:</text>
      <paragraph num="(a)">
        <text>Quality of care violations;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Changes in business practice that are detrimental to Medicaid recipients;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Impending bankruptcy; or</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Other good cause shown.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>If the Department revokes the allotment, the provider shall repay the total allotment to the Department within 15 days of the notice of revocation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>In order to obtain an allotment, the provider shall agree that it holds the allotment in constructive trust for the State subject to recoupment or immediate payment on demand by the State.</text>
  </paragraph>
  <paragraph num="H.">
    <text>The Interim Working Capital Fund expires on May 1, 2025. Providers shall repay all outstanding funds to the Department by May 1, 2025. The Department may grant repayment extensions, not longer than 60 days, under extraordinary circumstances.</text>
  </paragraph>
</regulation>