Bill Text: OR HB2054 | 2011 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to health care facility licensing; and declaring an emergency.

Spectrum: Unknown

Status: (Passed) 2011-05-16 - Chapter 35, (2011 Laws): Effective date May 16, 2011. [HB2054 Detail]

Download: Oregon-2011-HB2054-Engrossed.html

---

     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 805

                           A-Engrossed

                         House Bill 2054
                  Ordered by the House March 16
            Including House Amendments dated March 16

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of Governor John A. Kitzhaber for
  Department of Human Services)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Authorizes Department of Human Services   { - and Oregon Health
Authority - }  to delay annual renewal of   { - health - }  { +
long term + } care facility license until compliance is certified
following on-site inspection. Requires annual on-site
inspections { +  of long term care facility + }.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to health care facility licensing; amending ORS 441.025
  and 441.060; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 441.025 is amended to read:
  441.025. (1) { + (a) + } Upon receipt of a license fee and an
application to operate a health care facility other than a long
term care facility, the Oregon Health Authority shall review the
application and conduct an on-site inspection of the health care
facility. The authority shall issue a license if it finds that
the applicant and health care facility comply with ORS 441.015 to
441.063 and the rules of the authority provided that the
authority does not receive within the time specified a
certificate of noncompliance issued by the State Fire Marshal,
deputy, or approved authority pursuant to ORS 479.215.
   { +  (b) The authority shall, following payment of the fee,
annually renew each license issued under this subsection unless:
  (A) The health care facility's license has been suspended or
revoked; or
  (B) The State Fire Marshal, a deputy or an approved authority
has issued a certificate of noncompliance pursuant to ORS
479.215. + }
  (2) { + (a) + } Upon receipt of a license fee and an
application to operate a long term care facility, the Department
of Human Services shall review the application and conduct an
on-site inspection of the long term care facility. The department
shall issue a license if the department finds that the applicant
and long term care facility comply with ORS 441.015 to 441.063
and 441.087 and the rules of the department provided that it does
not receive within the time specified a certificate of
noncompliance issued by the State Fire Marshal, deputy, or
approved authority pursuant to ORS 479.215.
   { +  (b) The department shall, following an on-site inspection
and payment of the fee, annually renew each license issued under
this subsection unless:
  (A) The long term care facility's license has been suspended or
revoked;
  (B) The long term care facility is found not to be in
substantial compliance following the on-site inspection; or
  (C) The State Fire Marshal, a deputy or an approved authority
has issued a certificate of noncompliance pursuant to ORS
479.215. + }
    { - (3) Each license, unless sooner suspended or revoked,
shall be renewable annually for the calendar year upon payment of
the fee, provided that a certificate of noncompliance has not
been issued by the State Fire Marshal, deputy, or approved
authority pursuant to ORS 479.215. - }
    { - (4) - }  { +  (3) + } Each license shall be issued only
for the premises and persons or governmental units named in the
application and shall not be transferable or assignable.
    { - (5) - }  { +  (4) + } Licenses shall be posted in a
conspicuous place on the licensed premises as prescribed by rule
of the authority or the department.
    { - (6) - }  { +  (5) + } No license shall be issued or
renewed for any health care facility or health maintenance
organization that is required to obtain a certificate of need
under ORS 442.315 until a certificate of need has been granted.
An ambulatory surgical center is not subject to the certificate
of need requirements in ORS 442.315.
    { - (7) - }  { +  (6) + } No license shall be issued or
renewed for any skilled nursing facility or intermediate care
facility, unless the applicant has included in the application
the name and such other information as may be necessary to
establish the identity and financial interests of any person who
has incidents of ownership in the facility representing an
interest of 10 percent or more thereof. If the person having such
interest is a corporation, the name of any stockholder holding
stock representing an interest in the facility of 10 percent or
more shall also be included in the application. If the person
having such interest is any other entity, the name of any member
thereof having incidents of ownership representing an interest of
10 percent or more in the facility shall also be included in the
application.
    { - (8) - }  { +  (7) + } A license may be denied to any
applicant for a license or renewal thereof or any stockholder of
any such applicant who has incidents of ownership in the health
care facility representing an interest of 10 percent or more
thereof, or an interest of 10 percent or more of a lease
agreement for the facility, if during the five years prior to the
application the applicant or any stockholder of the applicant had
an interest of 10 percent or more in the facility or of a lease
for the facility and has divested that interest after receiving
from the authority or the department written notice that the
authority or the department intends to suspend or revoke the
license or to decertify the facility from eligibility to receive
payments for services provided under this section.
    { - (9) - }  { +  (8) + } The Department of Human Services
may not issue or renew a license for a long term care facility,
unless the applicant has included in the application the identity
of any person who has incident of ownership in the long term care
facility who also has a financial interest in any pharmacy, as
defined in ORS 689.005.
    { - (10) - }  { +  (9) + } The authority shall adopt rules
for each type of health care facility, except long term care

facilities, to carry out the purposes of ORS 441.015 to 441.087
including, but not limited to:
  (a) Establishing classifications and descriptions for the
different types of health care facilities that are licensed under
ORS 441.015 to 441.087; and
  (b) Standards for patient care and safety, adequate
professional staff organizations, training of staff for whom no
other state regulation exists, suitable delineation of
professional privileges and adequate staff analyses of clinical
records.
    { - (11) - }  { +  (10) + } The department shall adopt rules
for each type of long term care facility to carry out the
purposes of ORS 441.015 to 441.087 including, but not limited to:
  (a) Establishing classifications and descriptions for the
different types of long term care facilities that are licensed
under ORS 441.015 to 441.087; and
  (b) Standards for patient care and safety, adequate
professional staff organizations, training of staff for whom no
other state regulation exists, suitable delineation of
professional privileges and adequate staff analyses of clinical
records.
    { - (12) - }  { +  (11) + } The authority or department may
not adopt a rule requiring a health care facility to serve a
specific food as long as the necessary nutritional food elements
are present in the food that is served.
    { - (13) - }  { +  (12) + } A health care facility licensed
by the authority or department may not:
  (a) Offer or provide services beyond the scope of the license
classification assigned by the authority or department; or
  (b) Assume a descriptive title or represent itself under a
descriptive title other than the classification assigned by the
authority or department.
    { - (14) - }  { +  (13) + } A health care facility must
reapply for licensure to change the classification assigned or
the type of license issued by the authority or department.
  SECTION 2. ORS 441.060 is amended to read:
  441.060. (1) The Oregon Health Authority   { - and the
Department of Human Services - }  shall make or cause to be made
on-site inspections of   { - licensed - }  health care facilities
 { + licensed under ORS 441.025 (1) + } at least once every three
years.
  (2) The authority and the Department { +  of Human Services + }
may prescribe by rule that any licensee or prospective applicant
desiring to make specified types of alteration or addition to its
facilities or to construct new facilities shall, before
commencing such alteration, addition or new construction, either
prior to or after receiving a certificate of need pursuant to ORS
442.315, if required, submit plans and specifications therefor to
the authority or the department for preliminary inspection and
approval or recommendations with respect to compliance with the
rules authorized by ORS 441.025 and 443.420 and for compliance
with National Fire Protection Association standards when the
facility is also to be Medicare or Medicaid certified.
  (3) The authority or the department may require by rule payment
of a fee for project review services at a variable rate,
dependent on total project cost.
  (4) For health care facilities, the authority shall develop a
review fee schedule as minimally necessary to support the
staffing level and expenses required to administer the program.
  (5) For long term care facilities and residential care
facilities, the department shall develop a review fee schedule as
minimally necessary to support the staffing level and expenses
required to administer the program. The fee for project review of
residential care facilities shall equal two-thirds that required
of health care facilities.

  (6) The authority or the department may also conduct an on-site
review of projects as a prerequisite to licensure of new
facilities, major renovations and expansions. The authority and
the department shall, at least annually, with the advice of the
facilities covered by the review, present proposed rule changes
regarding facility design and construction to such agencies for
their consideration.
  (7) The authority shall publish a state submissions guide for
health care facility projects and advise project sponsors of
applicable requirements of federal, state and local regulatory
agencies.
  (8) The department shall publish a state submissions guide for
long term care facility and residential care facility projects
and advise project sponsors of applicable requirements of
federal, state and local regulatory agencies.
  SECTION 3.  { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
                         ----------