Sponsored by:
Assemblyman NICHOLAS CHIARAVALLOTI
District 31 (Hudson)
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
SYNOPSIS
Revises licensure, operational, and reporting requirements for long-term care facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning long-term care facilities, amending P.L.1987, c.322, and supplementing Title 26 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1987, c.322 (C.26:2H-7.2) is amended to read as follows:
1. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, a nursing home which proposes to increase the total number of licensed beds contained therein by not more than 10 beds or 10% of its licensed bed capacity, whichever is less, within a period of five years is exempt from the requirement of obtaining a certificate of need if the nursing home is in compliance with all State regulations governing its operations. No transfer of a licensed bed that is added by a nursing home in accordance with the requirements of this section to another nursing home, and no transfer of a licensed bed that is part of an unimplemented certificate of need to another nursing home, shall be authorized except upon application for and receipt of a certificate of need as provided by P.L.1971, c.136 (C.26:2H-1 et seq.).
(cf: P.L.1987, c.322, s.1)
2. (New section) a. The transfer of ownership of a long-term care facility shall not require a certificate of need except when the proposed owner does not satisfy the Department of Health's track record review, including a review of the dashboard data for the facility published pursuant to subsection f. of section 3 of P.L. , c. (C. ) (pending before the Legislature as Senate Bill No.2759 or Assembly Bill No.4478 of 2020/2021) for the preceding three years, if available.
b. Prior to transferring ownership of a long-term care facility, the prospective new owner shall submit an application to the Long Term Care Licensing and Certification Program. The application shall include the following items:
(1) the transfer of ownership fee established by the department;
(2) a cover letter stating the applicant's intent to purchase the long-term care facility, and identification of the facility by name, address, county, and number and type of licensed beds;
(3) a description of the proposed transaction, including:
(a) identification of the current owners of the long-term care facility;
(b) identification of 100 percent of the proposed new owners, including the names and addresses of all principals; and
(c) if applicable, a copy of an organizational chart, including parent corporations and wholly-owned subsidiaries;
(4) a copy of the agreement of sale and, if applicable, a copy of any lease and management agreements;
(5) a projection of profits and losses for the next three years and a capital budget projection for the next three years; and
(6) disclosure of any licensed health care facilities owned, operated, or managed by the proposed owners and principals in any state or territory of the United States or in the District of Columbia in the preceding five years, along with audited financial statements for each such facility for the last three years during which the facility was owned, operated, or managed by the third party entity. If the owners or principals own, operate, or manage facilities located outside New Jersey, the application shall include letters from the regulatory agency in each jurisdiction in which a facility is owned, operated, or managed, verifying that the facility was operated in substantial compliance with the laws of that jurisdiction throughout the preceding five year period or for such time during that period as the third party entity owned, operated, or managed the facility, and that the facility has had no enforcement actions imposed during that period of time.
c. Approval of a transfer of ownership of a long-term care facility is contingent upon:
(1) a review of the applicant's track record by the department, including a review of the dashboard data published pursuant to subsection f. of section 3 of P.L. , c. (C. ) (pending before the Legislature as Senate Bill No.2759 or Assembly Bill No.4478 of 2020/2021) for any other facility owned, operated, or managed by the proposed owners and principals in New Jersey, and a determination based on that review that approval of the transfer of ownership will not present a material risk to the health, safety, or welfare of residents of the facility that is the subject of the transfer application;
(2) payment of all outstanding Medicaid audit claims and State penalties issued by the department against the current owner, or written verification by the applicant that the applicant will assume responsibility for payment of such audit findings and State penalties; and
(3) a criminal history background check of each proposed owner and principal and a determination that no proposed owner or principal has a prior conviction involving fraud or any other criminal offense of a financial nature, or a prior conviction that may bear on the health and safety of residents of a long-term care facility, including, but not limited to, a prior conviction involving abuse, neglect, or exploitation of any person.
d. For the purposes of paragraph (3) of subsection c. of this section, the department is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable federal and State laws, rules, and regulations. Upon receipt of such notification, the department shall make a determination as to whether transferring all or part of the ownership of a long-term care facility to the applicant would constitute a material risk to the health, safety, or welfare of residents of the facility. An applicant for a transfer of ownership of a long-term care facility who is required to complete a criminal history record background check pursuant to this section shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. An applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.
e. Transfer of ownership application materials shall published on the department s Internet website and shall be subject to public comment for a period of not less th