By Jerri Lynn Ward, J.D., Garlo Ward, P.C.
Posted June 12, 2002
The Texas Department of Human Services (TDHS) has recently adopted amendments to the regulations in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter that will affect the processes surrounding change of ownership. The amendments are to the regulations outlined in title 40, rule numbers 19.210 and 19.2308, of the Texas Administrative Code.
The amendments are meant to include changes made by the 77th Legislature in Senate Bill 37 and Senate Bill 772.Under SB 37, nursing facilities may obtain a 90-day temporary change of ownership license, to be issued 30 days after a completed application is submitted and a background check is conducted on the owning entities. During this 90-day period, TDHS will also send surveyors to conduct an inspection of the facility.
Senate Bill 772 allows for an expedited change of ownership license to be issued if a new owner submits a completed application, passes a background check, and appears on the excellent performing operator list. The license will be issued within 14 days after the completed application is returned and a background check is completed. The expedited change of ownership license expires on the 91st day, and an on-site inspection will be conducted within the 90-day period.
The amendments to 19.210 explain the process of obtaining a temporary change of ownership license from TDHS, and are effective April 1, 2002.
The amendments to 19.2308 explain that TDHS will recognize an ownership changes effective as the date of transfer of ownership agreed to between the prior owner and the new owner if TDHS receives written notice of the change at least 30 days before the effective date of the temporary change of ownership date. If notice of change is not received 30 days prior to the agreed change date, TDHS will not be responsible for payments made to the prior owner or new owner that do not reflect the established date of change. TDHS will not make a duplicate payment.
Amendments to 19.2308 also set out the conditions under which TDHS may place vendor payments to the prior owner on hold. However, during the period between the issuance of a temporary change of ownership license and the inspection or survey of the nursing facility, TDHS may not place a hold on vendor payments to the temporary license holder. If the nursing facility fails to pass the inspection or survey or fails to meet the requirements in 19.201 of title 40, TDHS may place a hold on vendor payments to the temporary license holder. Amendments to 19.2308 are also effective April 1, 2002.
Nursing facilities that are anticipating a change of ownership should consult a lawyer to make sure they comply with the regulations imposed by the Nursing Facility Requirements for Licensure and Medicaid Certification chapter of the TAC.
All information in this article is informational only and is not legal advice. Should you have any questions or a situation requiring advice, please contact an attorney.
Copyright 2004 by Garlo Ward, P.C., all rights reserved
Austin, Texas 78752-3714 USA
Telephone: 512-302-1103
Facsimilie: 512-302-3256
Email: Info@Garloward.com
