10.08.01.07

.07 Assurances from Grantee.

A. The following assurance in this section applies to all grantees receiving construction funds under the Loan Acts of 1972, 1975, 1977, and 1978: For a period of 15 years following the completion of a project, the grantee shall operate the nursing home as a public or nonprofit nursing home and the nursing home may not be sold, bargained, or transferred to a person, agency, or organization not qualified under these regulations without prior written approval of the Department and the Board of Public Works.

B. The following assurance in this section applies to all grantees receiving construction funds under the Loan Act of 1980: For a period of 15 years following the completion of a project, the grantee shall operate the nursing home as a public or nonprofit nursing home and the nursing home may not be sold, bargained, or transferred to a person, agency, or organization not qualified under these regulations without prior written approval of the Secretary.

C. The following assurance in this section applies to all grantees receiving construction funds under the Loan Acts of 1985, 1990, and subsequent similar Acts: For a period of 15 years following the completion of a project, the grantee shall operate the nursing home as a public or nonprofit nursing home and the nursing home may not be sold, bargained, or transferred to a person, agency, or organization not qualified under these regulations without prior written approval of the Board of Public Works.

D. The following assurance in this section applies to all grantees receiving construction funds under the Loan Acts of 1972, 1975, 1977, 1978, 1980, 1985, 1990, and subsequent similar Acts: The grantee shall operate and maintain the completed nursing home in accordance with all applicable State and federal regulations and standards for comprehensive care facilities.

E. The following assurance in this section applies to all grantees receiving construction funds under the Loan Acts of 1972, 1975, 1977, and 1978: Patients shall be admitted without discrimination on the basis of race, creed, color, sex, national origin, age, marital status, or handicap.

F. The following assurance in this section applies to all grantees receiving construction funds under the Loan Acts of 1978, 1980, 1985, 1990, and subsequent similar Acts: The nursing home shall apply the same admissions standards to all persons. A Medicaid recipient shall receive the same consideration as any other candidate for admission. Quotas by class of payor are not allowed.

G. For those grantees receiving State funds under the Loan Acts of 1972, 1975, 1977, and 1978, the grantee shall agree to provide uncompensated care annually at one of the following levels:

(1) A grantee may advise the State that it does not intend to deny an individual admission to the facility because of the individual's inability to pay;

(2) A grantee may advise the State that its level of uncompensated care for individuals unable to pay shall be equal to 10 percent annually of all State funds received under the applicable Nursing Home Loan Act;

(3) A grantee may advise that the proposed level of uncompensated care shall be equal to 3 percent of the difference between the facility's annual operating cost and the sum of the annual Medicare and Medicaid reimbursements.

H. For those grantees that received State funds under the Loan Act of 1980, the grantee shall agree to provide uncompensated care annually at one of the following levels:

(1) The grantee shall advise the Department that its level of uncompensated care for individuals unable to pay shall be equal to 10 percent annually of all State funds received under the Nursing Home Loan Act of 1980;

(2) The grantee shall advise the Department that the proposed level of uncompensated care shall be equal to 3 percent of the difference between the facility's annual operating cost and the sum of the annual Medicare and Medicaid reimbursements.

I. If the grantee finds that the options in §G or H of this regulation are not feasible, the grantee shall propose an alternate option to the Department. This alternate proposal shall be reviewed by the Secretary in consultation with the grantee, and a determination shall be made as to its acceptability.