New Temporary License
New Expedited Procedures for Excellent Performing Operators
Posted December 28, 2001
LICENSURE
Application
Senate Bill 37 provides for a temporary change of ownership license which is issued to an applicant who proposes to become the new operator of a nursing facility. TDHS must receive a completed application and the appropriate fee and then has 30 days upon which to determine if the applicant and any other controlling persons meet the necessary licensure requirements. If TDHS determines that the applicant meets the criteria for a temporary license, one will be issued no later than the 30th day after the application is filed, or TDHS will notify the applicant that their application has been denied. If an application for a temporary change of ownership license is not completed with ALL information, it must be completed within 30 days after its original submission or TDHS will deny the application.
On-Site Inspection
After TDHS has issued a temporary change of ownership license, an on-site inspection is conducted to verify compliance with the requirements. If the applicant passes an initial inspection or a subsequent inspection before the temporary license expires, a two-year license is issued. The effective date of the license is the date requested on the application, however, that date cannot precede the date the application is received by TDHS. The temporary license expires on the 91st after the date the temporary change of ownership license is issued.
Probationary License
When an applicant has not previously held a license in Texas, a probationary license is issued following the temporary change of ownership license. A probationary license expires in one year.
Expedited CHOW License
Senate Bill 772 provides 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. A temporary license is issued 14 workdays after a completed application is submitted and a background check is conducted. This license also expires on the 91st day and an on-site inspection will be conducted within the 90 day period. The facility is surveyed pursuant to the rules relating to temporary licenses.
Excellent Performers
TDHS will maintain a list of excellent performing nursing facility license holders that operate an institution in Texas and have excellent operating records. TDHS will use the criteria in §19.2322(d). This section identifies factors that a nursing facility will not incur if they hold a history of quality of care: Termination of Medicaid certification; termination of Medicaid contract; civil penalty (pursuant to §242.065 of the Texas Health and Safety Code); Medicaid monetary penalty; denial of payment for new admissions; denial of a facility’s license or denial of new admissions (pursuant to §242.012 of the Texas Health and Safety Code).
Medicaid Certification
Because of the temporary license, Medicaid payments will not be placed on vendor hold to the new owner until they complete their inspection or the license expires on the 91st day after the license is effective. During the period between the issuance of the temporary change of ownership license and the inspection or survey, TDHS may not place a hold on vendor payments to the temporary license holder. If the facility fails to pass the inspection or survey, or fails to meet the requirements for licensure, TDHS may place a hold on vendor payments.
Summary of Significant Changes:
- With a temporary license, Medicaid payments will continue for up to 90 days to allow the CHOW survey to occur and TDHS to complete the application approval process
- For licensure, the facility will receive an initial CHOW survey and up to one follow up survey. Under Medicaid, a vendor hold can be placed on Medicaid payments if the facility does not pass the initial CHOW survey.
- The application forms must be completed within 30 days of the filing of the initial application or the entire application is denied. Items, such as the fire marshal’s inspection, surety bond and hospital transfer agreements which can take longer to obtain, will have to be completed within 30 days or the application will be denied.
- Under the expedited CHOW procedures, a temporary license can be obtained within 14 days.
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