(1) Existing law provides for the licensure and regulation of health facilities by the State Department of Public Health. Existing law requires an applicant desiring a license to operate or approval to manage a health facility, as defined, to file an application with the department.
This bill would define “manage” with respect to a skilled nursing facility to mean to assume operational control of the facility, to direct or control aspects of patient care and quality within the facility, or to be involved in the hiring, firing, supervision, and direction of direct care staff.
(2) Existing law requires each applicant for a license to operate a skilled nursing facility to disclose to the State Department of Public Health, among other things, the names and
addresses of any person or organization, or both, having an ownership or control interest of 5% or more in a management company that operates, or is proposed to operate, the facility.
This bill would require a prospective transferee or prospective licensee of a free-standing skilled nursing facility, upon the sale, transfer of operation, or other change or transfer of ownership, to submit a notice of intent to the department at least 90 days prior to the transfer or change of ownership. The bill would require the department, within 90 days of submission of the completed notice of intent form, to determine whether the prospective transferee or prospective licensee is responsible and suitable for licensure, based on specified criteria. Under the bill, if the department determines that the prospective transferee or prospective licensee is responsible and suitable for licensure, upon a transfer or change of ownership, the prospective transferee or prospective licensee
would be authorized to file an application for a license, which would have the effect of a license until the department takes final action on the application. If the department determines that the prospective transferee or prospective licensee is not responsible and suitable for licensure, the bill would allow the prospective transferee or prospective licensee to request an administrative hearing to appeal that determination. The bill would prohibit a transfer of ownership of the facility unless the prospective transferee or prospective licensee has been determined responsible and suitable for licensure. The bill would also prohibit the department from approving an application for a license to operate, or for approval to manage, a skilled nursing facility unless the prospective transferee or prospective licensee has been determined responsible and suitable for licensure. Notwithstanding these provisions, if the department has
not acted within the 90 days required under these provisions, the bill would authorize the transfer of ownership of the facility and application for licensure to proceed on an interim basis, as specified.
This bill would require a licensee of a skilled nursing facility, at least 90 days prior to the sale, transfer of operation, or other change or transfer of ownership, to give a written notice to all residents of the facility and their representatives that contains specified information relating to the prospective licensee, transferee, assignee, or lessee. The bill would impose a civil penalty of $100 per day on a licensee for each day the notice is delayed.
This bill would prohibit a prospective transferee, in the capacity of a prospective licensee, during a 60-day transition period, from discharging an employee, other than the nursing home administrator and the director of nursing, without cause.
The bill would prohibit, during that 60-day period, an employee from suffering any reduction in wages, benefits, or other terms and conditions of employment as a result of the transfer or change of ownership.
This bill would exempt from the above provisions a skilled nursing facility that is a distinct part of an acute care hospital and would specify that these provisions only apply to license applications submitted after January 1, 2020. a specified date.
(3) Existing law requires the department to promote quality of care and quality of life for residents, clients, and patients in long-term health care facility services through specific activities, including research, training, and technical assistance, as
specified.
This bill would require the department to review whether a skilled nursing facility, with the exception of a facility that is a distinct part of an acute care hospital, has made a reasonable effort to comply with prescribed staffing ratios, whether a facility compensates employees with wage increases and benefits, and whether there has been an unreasonably high turnover of staff, as specified.
(4) Existing law makes it a misdemeanor to violate laws relating to the licensing of health facilities.
Because a violation of the above-described requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish
procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.