10.07.02.03
03 Licensing Procedure.
A. Application for License.
(1) An applicant desiring to open a comprehensive care facility or an extended care facility or to continue the operation of an existing facility as a comprehensive care facility or an extended care facility shall file an application with the Secretary, on a form provided by the Secretary. A nonrefundable licensing fee of $6 per bed per year shall accompany the application for licensure.
(2) Applications on behalf of a corporation, association, or governmental unit or agency shall be made by two officers of the corporation, association, or governmental unit or agency and names of their board members shall be submitted. Ownership of property, real estate, and equipment, shall be disclosed if it is other than the licensee's. The names of persons holding 2 percent or more of the stock or assets shall be disclosed.
(3) The applicant for a license to operate a comprehensive care facility or an extended care facility is the licensee. Responsibility for conformance with licensing standards and regulations rests upon the licensee. Those licensees requesting participation in the Maryland Medicaid program shall comply with the Medicaid contract.
(4) Additional Requirements.
(a) The provisions of this section shall apply only to applicants desiring to purchase or lease an existing facility.
(b) The Secretary may require an applicant for licensure to submit to the Secretary information concerning the applicant's:
(i) Past or current operation of a nursing home or related institution located within or outside this State; and
(ii) Financial and administrative ability to maintain a nursing home in compliance with these regulations, whether or not the applicant ever operated a nursing home or related institution.
(c) The Secretary shall either:
(i) Approve the application unconditionally.
(ii) Require the applicant to utilize the services of a management firm approved by the State. The management firm shall assume full operational and financial responsibility. The Secretary may not require utilization of a management firm for a period in excess of 24 months.
(iii) Deny the application.
(d) A party aggrieved by a decision of the Secretary under this section shall have the right to appeal under the authority of Health-General Article, § 2-207, Annotated Code of Maryland.
B. Restrictions of License.
(1) Nomenclature. Comprehensive care facilities or extended care facilities licensed under this regulation may not use in their title the words "Hospital", "Sanitorium", or "Sanitarium".
(2) Zoning. If a proposed facility is to be located in a political subdivision requiring zoning approval, the zoning authority's written approval shall be submitted to the Department before the Department's approval of the first drawings which are submitted.
(3) Local Law or Ordinance, Where Applicable. Comprehensive care facilities or extended care facilities located in political subdivisions which require them to meet certain standards shall submit proof to the Secretary that they meet local laws, regulations, or ordinances at the time application for license is submitted.
(4) Renewal of License. A facility shall file an application for the renewal of the license every 2 years at least 60 days before expiration of the issued license, submitted on forms provided by the Secretary and accompanied by a nonrefundable licensing renewal fee of $6 per bed per year.
(5) Transfer or Assignment of License. If the sale, transfer, assignment, or lease of a facility causes a change in the person or persons who control or operate the facility, the facility shall be considered a "new facility" and the licensee shall conform to all regulations applicable at the time of transfer of operations. The transfer of any stock which results in a change of the person or persons who control the facility, or the transfer of any stock in excess of 25 percent of the outstanding stock, constitutes a sale. For purposes of Life Safety Code enforcement, the facility is considered as an existing facility if it has been in continuous use as a nursing home. Waivers may be granted under Regulation .02F of this chapter.
(6) Return of License or Renewal Certificate to the Secretary of Health and Mental Hygiene. If the comprehensive care facility or the extended care facility is sold, leased, discontinued, the operation moved to a new location, the license revoked, or its renewal denied, the current license immediately shall become void and shall be returned to the Secretary.
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