10.07.02.04

.04 Licensing Procedure.

A. Application for License.

(1) An applicant desiring to open a comprehensive care facility or an extended care facility shall file an application with the Secretary, on a written or electronic form provided by the Secretary.

(2) An application for a license shall be filed with the Department at least 60 days before the anticipated issuance of the license.

(3) Applications on behalf of a legal entity shall be made by the senior officer or other senior official and a second official, if any.

(4) All members of the governing body shall be disclosed, with their business addresses.

(5) The applicant shall complete all disclosure required by the Secretary, including:

(a) Ownership of real property;

(b) The identity of any management company that will operate or contract with the applicant to operate the facility;

(c) Ownership of equipment; and

(d) The names of persons holding 5 percent or greater of stocks or assets.

(6) 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.

(7) Additional Requirements.

(a) The Secretary shall require an applicant for licensure to submit to the Secretary the following information concerning the applicant’s:

(i) Past or current operation of a nursing home, other health care facility as defined in Health-General Article, §19-114, Annotated Code of Maryland, assisted living program, residential service agency or other licensed in-home care service, or licensed community program for individuals with developmental disabilities, substance abuse, or mental health needs, located within or outside this State;

(ii) Ability to comply with the applicable standards of medical and nursing care and applicable State or federal laws and regulations by disclosing the identities of its medical director, director of nursing, and administrator, and by providing the nursing home’s quality assurance plan, as required in Regulation .66 of this chapter; and

(iii) Financial and administrative ability to maintain a nursing home in compliance with these regulations, including submission of an audited financial statement, whether or not the applicant ever operated a nursing home, related institution, or other health care facility.

(b) The Secretary shall:

(i) Approve the application unconditionally;

(ii) Approve the application with conditions, such as requiring the applicant to use the services of a management firm, requiring a staffing pattern, or limiting admissions to the facility; or

(iii) Deny the application.

(c) A person who disagrees with the decision of the Secretary to deny a license application under this section may appeal the Secretary’s action by filing a request for a hearing in accordance with Regulation .78 of this chapter.

B. Restrictions of License.

(1) Nomenclature. A nursing home licensed under this regulation may not use the word “hospital” in its title.

(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. A nursing home located in a political subdivision which requires it to meet certain standards shall submit proof to the Secretary that the nursing home meets local laws, regulations, or ordinances at the time application for license is submitted.

(4) Transfer or Assignment of License.

(a) If the sale, transfer, assignment, or lease of a nursing home causes a change in the person or persons who control or operate the nursing home, the nursing home shall be considered a “new nursing home” and the licensee shall conform to all regulations applicable at the time of transfer of operations.

(b) The transfer of any stock which results in a change of the person or persons who control the nursing home, or a 25 percent or greater change in any form of ownership interest, constitutes a sale.

(c) For purposes of Life Safety Code enforcement, the nursing home is considered to be an existing nursing home if it has been in continuous use as a nursing home. Waivers may be granted under Regulation .03F of this chapter.

(5) Return of License to the Secretary of Health. The current license shall immediately become void and shall be returned to the Secretary if the:

(a) Nursing home is sold, leased, or discontinued;

(b) Operation moved to a new location; or

(c) License is revoked.