RÉSUMÉ DIGEST
ACT 417 (HB 402) 2017 Regular Session Havard
New law provides that it may be cited as the "Community-Based Care Facility Licensing
Law".
New law presents findings and declarations concerning the necessity of appropriate care and
treatment for persons with mental illness.
New law provides that its purpose is to authorize the La. Department of Health (LDH) to
promulgate and adopt rules, regulations, and standards to license and regulate facilities to be
operated as community-based care facilities in order to provide for the health, safety, and
welfare of persons receiving mental health services.
New law defines "community-based care facility" as a facility where five or more adults with
a primary diagnosis of mental illness who are not related to the operator or administrator and
who do not require care above intermediate-level nursing care reside and receive care,
treatment, or services that are above the level of room and board and include no more than
three hours of nursing care per week per resident.
New law requires each community-based care facility to be licensed in accordance with the
requirements of new law. Specifically provides that community-based care facilities shall
not be subject to requirements of existing law for licensure and regulation as behavioral
health services providers (R.S. 40:2151 et seq.).
New law stipulates that no facility, agency, institution, person, society, corporation,
partnership, unincorporated association, group, or other legal entity providing
community-based care services may be established, operated, or reimbursed through the
Medicaid program unless licensed as a community-based care facility by LDH.
New law provides that a license issued to a community-based care facility shall be issued
only for the owner and premises named in the application; shall be on a form prescribed by
LDH; shall be valid for a 12-month period beginning the month of issuance unless revoked
or otherwise suspended prior to that date; and shall not be transferable or assignable.
New law requires LDH to adopt rules, regulations, and licensing standards in accordance
with the Administrative Procedure Act to provide for the licensure of community-based care
facilities. Provides that such rules, regulations, and licensing standards shall include, without
limitation, all of the following:
(1)Licensure application and renewal application forms, procedures, and requirements.
(2)Operational and personnel requirements.
(3)Practice standards to assure quality of care.
(4)Practice standards to assure the health, safety, and welfare of clients.
(5)Confidentiality of client records.
(6)Initial and annual renewal of license.
(7)Financial viability requirements and requirements for verification and continuous
maintenance of financial viability.
(8)Denial, revocation, suspension, and nonrenewal of licenses, and procedures for
appeals of such decisions.
(9)Facility construction and design.
(10)Other regulations or standards to ensure proper care and treatment of clients. New law applies to community-based care facilities all of the following fees established in
existing law for licensed healthcare facilities and providers, all of which are payable to LDH:
(1)A fee of $600 at the time of initial application for licensure and annually thereafter
for renewal of the license.
(2)An additional fee of $5 per unit, defined to mean a room or station (commonly
known as a "bed fee").
(3)A delinquent fee of $100 for failure to timely renew a license.
New law provides that following receipt of a license application and the required fee, LDH
shall perform an onsite survey and inspection, and shall issue a license to the applicant if it
finds that the applicant meets all applicable licensure requirements. Provides that LDH may
perform another onsite survey and inspection after receiving an annual license renewal
application, and shall renew the facility's license if the facility continues to meet all
applicable licensure requirements. Provides further that LDH may perform any onsite
inspections of community-based care facilities at reasonable times as necessary to ensure
compliance with new law.
New law authorizes LDH to license community-based care facilities which propose to
operate in one or more state-owned residential buildings. Requires the secretary of LDH to
direct department staff to cooperate with and give assistance to any applicant who seeks to
operate a community-based care facility in one or more state-owned residential buildings and
is otherwise qualified for licensure pursuant to new law.
New law provides that its implementation shall be subject to approval by the Centers for
Medicare and Medicaid Services (CMS) and by the Joint Legislative Committee on the
Budget.
New law extends the termination of the moratorium on licensure of level 4 adult residential
care providers provided in prior law from July 1, 2017, to July 1, 2022.
Effective August 1, 2017; however, new law stipulates that its provisions relative to
community-based care facility licensure shall only become effective in the event that a
specific appropriation by the legislature is made for such purposes and the program receives
approval by CMS.
(Amends R.S. 40:2166.7.1; Adds R.S. 40:2006(A)(2)(r), (B)(2)(i), and (E)(2)(t),
2154(A)(19), and 2162.1-2162.8)