SLS 22RS-20 ENGROSSED 2022 Regular Session SENATE BILL NO. 30 BY SENATOR FRED MILLS HEALTH SERVICES. Provides relative to facility need review. (8/1/22) 1 AN ACT 2 To amend and reenact R.S. 40:2116 and to enact R.S. 40:2009.4(C), 2116.1, 2116.2, and 3 2180.2(12), relative to facility need review; to provide legislative authority for 4 facility need review; to provide for healthcare provider types subject to facility need 5 review; to provide for the facility need review committee; to provide for a nursing 6 facility moratorium; to provide for exceptions; to provide for cost effective 7 measures; to provide for notice of sex offenders living in certain facilities; and to 8 provide for related matters. 9 Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 40:2116 is hereby amended and reenacted and R.S. 40:2009.4(C), 11 2116.1, 2116.2, and 2180.2(12) are hereby enacted to read as follows: 12 §2009.4. Standards prescribed 13 * * * 14 C. The Louisiana Department of Health shall develop and implement 15 policies and procedures to require nursing facilities to notify new residents and 16 their families and guardians of sex offenders living in their facilities upon 17 admission. The notification shall continue for as long as the information is Page 1 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 considered a public record. During the annual licensing process, health 2 standards surveyors shall verify the providers compliance with the policy. 3 * * * 4 PART II-A. FACILITY NEED REVIEW 5 AND NURSING FACILITY MORATORIUM 6 §2116. Facility need review 7 A. The Louisiana Department of Health, in accordance with the 8 Administrative Procedure Act, shall establish shall implement a facility need review 9 process consistent with the regulations for licensure and for Title XIX of the Social 10 Security Act in accordance with the provisions of this Section. The department 11 may institute facility need review on licensing or certification to participate in 12 the Title XIX program. Except as provided in R.S. 40:2116.1, no healthcare 13 provider shall be subject to facility need review unless authorized by the 14 legislature in Subsection B of this Section. 15 B. The following healthcare providers shall be subject to facility need 16 review to determine the need for a new or additional facility, provider, 17 program, service, or bed: 18 (1) Home- and community-based service providers. However, certain 19 services or modules of a home- and community-based service provider may be 20 excluded from the facility need review process at the discretion of the secretary 21 of the Louisiana Department of Health. 22 (2) Hospice providers or inpatient hospice facilities. 23 (3) Pediatric day healthcare facilities. 24 (4) Behavioral health services providers that provide psychosocial 25 rehabilitation or community psychiatric support and treatment services. 26 (5) Opioid treatment programs licensed under a behavioral health 27 services provider license. 28 (6) Intermediate care facilities for persons with developmental 29 disabilities. Page 2 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 C.(1) The secretary of the Louisiana Department of Health shall appoint 2 a facility need review committee, "FNR committee", that shall consist of the 3 following members: 4 (a) The secretary of the Louisiana Department of Health or his designee. 5 (b) The assistant secretary of the office of behavioral health of the 6 Louisiana Department of Health or his designee. 7 (c) The assistant secretary of the office for citizens with developmental 8 disabilities of the Louisiana Department of Health or his designee. 9 (d) The assistant secretary of the office of aging and adult services of the 10 Louisiana Department of Health or his designee. 11 (e) The assistant secretary of the office of public health of the Louisiana 12 Department of Health or his designee. 13 (f) The Medicaid director of the Louisiana Department of Health or his 14 designee. 15 (g) The Medicaid medical director of the Louisiana Department of 16 Health or his designee. 17 (2) In addition to the members set forth in Paragraph (1) of this 18 Subsection, the secretary may appoint additional members to the FNR 19 committee when necessary in reviewing applications of opioid treatment 20 programs. 21 (3) No FNR committee member shall have a proprietary or financial 22 interest in any facility subject to facility need review. 23 (4) The FNR committee shall issue a decision on a facility need review 24 application within ninety days from receipt of application or within the 25 deadlines established in a request for proposal or request for application. 26 (5) An applicant for facility need review shall provide all written 27 application materials and documentation as may be required by rule. The 28 applicant may include any additional written documentation or written 29 evidence that supports the application for facility need review. Page 3 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 (a) Unless otherwise stated in a specific request for proposal or request 2 for applications, the initial review and decision by the FNR committee shall 3 consider all written materials and documentation submitted by the applicant 4 and shall be conducted as a paper review. 5 (b)(i) Unless otherwise stated in a specific request for proposal or request 6 for applications, if the initial decision is to reject or deny the facility need review 7 application, then the applicant may request to supplement the application. 8 (ii) Upon receipt of additional documentation and evidence from the 9 applicant, the FNR committee shall conduct a supplemental application review 10 and shall provide the applicant an opportunity to meet with the FNR committee 11 or its designees as part of the review. The meeting may be conducted in-person 12 or, at the discretion of the Louisiana Department of Health, through virtual 13 means, including by telephone or virtual technology that facilitates synchronous 14 interaction. 15 (iii) After a meeting conducted pursuant to Item (ii) of this 16 Subparagraph, the applicant may submit additional documentation and 17 evidence for consideration during the supplemental application review. 18 (iv) The decision on the supplemental application review shall be made 19 by the FNR Committee. 20 (c) If the facility need review application is rejected or denied after the 21 supplemental application review, the applicant may request an administrative 22 appeal of the FNR committee's decision with the Division of Administrative Law 23 in accordance with the Administrative Procedure Act. The applicant is not 24 required to request a supplemental review and can elect to proceed directly to 25 an administrative appeal. 26 (6) If the FNR committee approves the facility need review application, 27 then the applicant may proceed with seeking licensure or certification to 28 participate in the Title XIX program as applicable. 29 B.D. The department shall promulgate rules and regulations in accordance Page 4 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 with the Administrative Procedure Act to provide for facility need review 2 implement the provisions of this Section. The rules and regulations shall include 3 but not be limited to the following: 4 (1) Criteria for review of beds for Level 4 adult residential care providers as 5 defined in R.S. 40:2166.3 and identified in R.S. 40:2166.5, and community and 6 group home beds for persons with developmental disabilities, to determine if there 7 is a need for additional beds to enroll and participate in the Title XIX program 8 healthcare provider applications for facility need review, including provisions 9 for review pursuant to requests for proposals or requests for applications. 10 (2) Criteria for review of nursing facility beds to determine if there is a need 11 for a new or additional beds facility, provider, program, service, or bed. 12 (3) Specific duties of the department and the FNR committee relative to 13 review proposals for new facilities and determine the need therefor of applications. 14 (4) Appropriate methodology for the collection of data necessary for the 15 administration of the program. 16 (5) Procedures for the FNR committee to grant and revoke approvals 17 approve, reject, or deny applications. 18 (6) Establishment of application fees. 19 (7) Procedures for a supplemental review of applications by the department 20 FNR committee. 21 (8) Procedures to request a fair hearing from a determination made by the 22 department FNR committee. 23 (9) Provisions for judicial review from the decision rendered after a fair 24 hearing an administrative appeal. 25 (10) Criteria for review of beds issued pursuant to a department waiver to 26 determine if there is a need for such beds to be licensed and enrolled in the Title XIX 27 program. Provided, however, that providers of services may be enrolled and 28 participate in such a Title XIX program only if and when the department develops 29 a cost-effective plan for medical residential care services that is cost neutral with Page 5 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 respect to existing Medicaid long-term care services and expenditures, or the 2 legislature specifically provides funding for such services. Establishment of 3 services and modules of a home- and community-based service provider that 4 will be subject to the facility need review process. 5 (11) Provisions and procedures for the revocation, suspension, and 6 expiration of FNR approvals. 7 C.E. No new facility, service, or beds healthcare provider as described 8 provided for in Paragraphs (B)(1) and (2) Subsection B of this Section shall be 9 certified to participate in the Title XIX program without the approval of the 10 department based upon a determination of a need therefor in accordance with the 11 provisions of this Part first obtaining facility need review approval and 12 complying with any and all licensing regulations promulgated by the 13 department. Any person establishing, managing, or operating a new facility, 14 service, or bed without the approval required by this Part Section shall be prohibited 15 from participating in the Title XIX program. 16 D.(1) In order to accomplish cost effectiveness of beds issued pursuant to a 17 department waiver, the department may promulgate rules that include but are not 18 limited to the following: 19 (a) A bed abeyance program to reduce nursing facility beds by ten percent or 20 more. Such an abeyance program shall include a time frame in which a determination 21 is made as to whether beds should be brought out of abeyance based upon a 22 ninety-three percent occupancy rate within a service area. 23 (b) An increase in the minimum occupancy level required for a nursing 24 facility to fully recover its capital cost. 25 (c) In order to achieve a reduction in long-term care institutional costs, a 26 program for reduction of certificates of need for nursing facility beds, which may 27 include a buy-back program, provided such a buy-back program is approved by the 28 Centers for Medicare and Medicaid Services and is eligible for federal funds 29 participation. Page 6 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 (d) A bed exchange program that allows a nursing facility to create adult 2 residential care beds based on the permanent elimination of existing nursing facility 3 beds. 4 (2) The Louisiana Department of Health shall implement a moratorium on 5 additional beds for nursing facilities. The Louisiana Department of Health shall not 6 approve any additional nursing facilities or additional beds in nursing facilities 7 through facility need review. This prohibition shall apply only to applications for 8 new beds not approved prior to July 1, 1996. The prohibition shall become 9 enforceable on July 1, 1996, and shall remain in effect until July 1, 2027. This 10 prohibition shall not apply to the replacement of existing facilities, provided that 11 there is no increase in existing nursing home beds at the replacement facility. 12 (3) Repealed by Acts 2008, No. 187, §2, eff. June 13, 2008. 13 (4) Notwithstanding any other provision of law to the contrary, any nursing 14 facility in Lafourche Parish located in an area designated a flood zone that has 15 commenced construction on a replacement facility during the period of the 16 moratorium on replacement facilities shall be eligible to apply for licensure after 17 June 30, 2008, provided the replacement facility is in an area outside a flood zone 18 in such parish and south of the Company Canal. The buildings and grounds 19 constituting the original nursing facility to be vacated may be offered by donation 20 to the state, political subdivision, or other public entity for uses consistent with 21 public purposes. 22 (5) The moratorium on additional beds for nursing facilities imposed pursuant 23 to Paragraph (2) of this Subsection shall not apply to a nursing facility that seeks to 24 license additional beds if the following criteria are met: 25 (a) The nursing facility is a non-profit corporation formed pursuant to 26 Louisiana law. 27 (b) The total number of additional beds shall not exceed ten. 28 (c) The additional beds shall be occupied only by persons who meet one of 29 the following criteria: Page 7 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 (i) Prior to admission to the nursing facility, the person resided in an adult 2 residential care facility, as defined in R.S. 40:2153, owned by the same legal entity 3 which owns the nursing facility. 4 (ii) Prior to admission to the nursing facility, the person resided in a living 5 unit of a provider of continuing care, as defined in R.S. 51:2173, owned by the same 6 legal entity which owns the nursing facility. 7 (iii) The person was previously a resident of the same nursing facility. 8 (d) The additional beds shall not be enrolled and participate in the Title XIX 9 program. 10 (e) Tentative approval of the plans and specifications for additional beds was 11 received by the division of engineering and architectural services of the Louisiana 12 Department of Health prior to August 15, 2006. 13 (f) Construction of the additional beds commenced prior to August 15, 2006. 14 (g) Construction was completed on or before April 1, 2007. 15 (6)(a) Notwithstanding any other provision of law to the contrary, the 16 department may license, but not certify for Medicaid participation, up to thirty 17 additional beds for a continuing care retirement community, registered in accordance 18 with R.S. 51:2171 et seq., and found to be in compliance with said statutes on May 19 3, 2002 by the Louisiana Department of Health during the existence of the 20 moratorium imposed pursuant to Paragraph (2) of this Subsection. 21 (b) At the discretion of the continuing care retirement community provider, 22 the licensed beds may be used for persons who are not residents of the continuing 23 care retirement community and who are not parties to a continuing care contract for 24 a period of up to five years after the receipt of the certification of occupancy for a 25 registered continuing care retirement community. After that period, the licensed beds 26 may be used only by owners of a continuing care contract with the continuing care 27 retirement community provider. 28 (7) Repealed by Acts 2011, No. 179, §1, eff. August 15, 2011. 29 (8) Repealed by Acts 2011, No. 179, §1, eff. August 15, 2011. Page 8 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 E.(1) Except as provided in Paragraphs (2), (3), and (4) of this Subsection, 2 the Louisiana Department of Health shall suspend approval, certification, and 3 enrollment of nursing facility beds which were previously approved to participate in 4 the Title XIX program under a facility need review process, Section 1122 process, 5 or any predecessor needs review process, unless such beds are certified and enrolled 6 in the Title XIX program by December 31, 1997. Such suspension shall be for the 7 length of the moratorium imposed pursuant to Subsection D of this Section. 8 (2) The suspension shall not apply to existing approvals for replacement of 9 existing nursing facilities, or approvals which are under judicial review, on August 10 15, 1997. The suspension shall not apply to approvals for alternate use of previously 11 approved beds. 12 (3) In the case of previously approved but unbuilt nursing facilities or beds, 13 the department shall not suspend approval, certification, and enrollment if 14 construction has actually begun by June 30, 1998, and construction is completed and 15 such facilities or beds are actually certified and enrolled in the Title XIX program 16 by December 31, 1999. In said cases, the department shall suspend approval, 17 certification, and enrollment of previously approved beds not certified and enrolled 18 by December 31, 1999. 19 (4) In the case of previously approved but unbuilt nursing facilities or beds, 20 if construction has actually begun by June 30, 1998, and construction is not 21 completed and the facilities or beds are not actually certified and enrolled in the Title 22 XIX program by December 31, 1999, the secretary of the Louisiana Department of 23 Health may authorize the certification and enrollment of the beds by December 31, 24 2001. However, the extension shall not be granted unless the secretary determines 25 that construction has not been completed due to circumstances beyond the control 26 of the applicant, a written request for an extension was made prior to December 31, 27 1999, and financing has been approved for the beds. These provisions shall only be 28 applicable in the case of a facility, the primary purpose of which is to replace an 29 existing facility, but also in so doing, enrolling additional beds. Page 9 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 F.(1) Except as provided in Paragraph (2) of this Subsection, the Louisiana 2 Department of Health shall revoke all approvals for community and group home 3 beds which were previously approved to participate in the Title XIX program under 4 a facility need review process, Section 1122 process, or any predecessor needs 5 review process, unless such beds are certified and enrolled in the Title XIX program 6 by December 31, 1997. 7 (2) In the case of unbuilt community and group home facilities, the 8 department shall not revoke approvals if construction has actually begun by 9 December 31, 1997, and construction is completed and such facilities or beds are 10 actually certified and enrolled in the Title XIX program by June 30, 1999. In said 11 cases, the department shall revoke all approved beds not certified and enrolled by 12 June 30, 1999. 13 G. Any intermediate care facility for people with developmental disabilities, 14 which serves children or adults with intellectual disabilities, autism, or behavioral 15 problems, with no less than one hundred fifty and no more than one hundred eighty 16 beds, shall be eligible for the facility need review process as set forth in this Section 17 and in rules and regulations promulgated by the Louisiana Department of Health as 18 authorized in Subsections A and B of this Section. The exemption shall exist for a 19 maximum of fifty additional beds. 20 H. In the case of nursing facility beds currently approved, any nursing facility 21 provider may replace any existing beds with adult residential care home beds, either 22 through new construction or through renovation and conversion. Such replacement 23 shall be subject to licensing regulations, but not to additional facility need review 24 process approval, subject to budget neutrality provisions and rules and regulations 25 promulgated by the Louisiana Department of Health. 26 I. The Louisiana Department of Health shall develop and implement policies 27 and procedures to require nursing facilities and ICF/DD providers to notify new 28 residents and their families and guardians of sex offenders living in their facilities 29 upon admission. The notification shall continue for as long as the information is Page 10 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 considered a public record. During the annual licensing process, health standards 2 surveyors shall verify providers' compliance with the policy. 3 J.(1) Notwithstanding any other provision of law to the contrary, the facility 4 need review approval for licensed intermediate care facilities for people with 5 developmental disabilities (ICF/DD) located in an area or areas which have been 6 affected by an executive order or proclamation of emergency or disaster and which 7 were operating at the time the executive order or proclamation was issued under R.S. 8 29:724 shall remain in effect and shall not be terminated, considered to have expired, 9 or revoked until January 1, 2012. For this exception to apply, the emergency or 10 disaster shall be the sole causal factor in the interruption of the provision of services. 11 This exception shall not apply if any one of the following occurs: 12 (a) The approval is voluntarily surrendered by the provider. 13 (b) The provider fails to notify in writing the health standards section of the 14 Louisiana Department of Health of its intention to avail itself of the continuation of 15 facility need review approval no later than December 31, 2005. 16 (c) The provider fails to recommence providing services prior to January 1, 17 2012. 18 (2) Nothing in this Subsection shall be construed to accomplish either of the 19 following: 20 (a) To permit a nursing home which has relocated, as the result of an 21 executive order or declaration of emergency or disaster issued in accordance with 22 R.S. 29:724, to relocate such facility outside of the geographic area for which the 23 original facility need review approval was granted. 24 (b) To permit a nursing home which has relocated, as the result of an 25 executive order or declaration of emergency or disaster issued in accordance with 26 R.S. 29:724, to obviate the provisions of R.S. 40:2116(D)(2). 27 (3)(a) Notwithstanding any other law to the contrary, any nursing home 28 provider located in a parish with a population between sixty-five thousand and 29 seventy thousand according to the latest federal decennial census, which parish was Page 11 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 affected by hurricane Katrina or Rita, and who ceased operations solely because of 2 the damage occasioned by the events which were the subject of an order or 3 proclamation of emergency or disaster issued pursuant to R.S. 29:724, and whose 4 operations have not been resumed as of July 1, 2008, shall have their pre-storm 5 facility need review approval reinstated for the sole purpose of rebuilding or 6 replacing the facility, upon meeting the following conditions: 7 (i) The nursing home provider shall submit a reinstatement request to the 8 health standards section of the Louisiana Department of Health in writing by 9 December 31, 2008. 10 (ii) The reinstatement request shall state the provider's intent to rebuild the 11 nursing home and resume providing nursing home services in that parish. 12 (iii) The nursing home provider shall resume operation as a nursing home 13 provider in that parish no later than January 1, 2010. 14 (iv) The nursing home provider shall submit all fees, costs, and cost reports 15 due and owing to the Louisiana Department of Health. 16 (b) The facility need review approval reinstated to the facility shall 17 encompass all rights and responsibilities afforded the facility at the time it ceased 18 providing services as a result of hurricanes Katrina and Rita. 19 (c) The provisions of this Subsection shall not apply to a nursing home 20 provider who has voluntarily surrendered its facility need review approval. 21 K. The department shall adopt a rule to allow a nursing home located in a 22 service area which has less than ninety-three percent occupancy to temporarily 23 convert a number of licensed beds to an alternate use. The beds may be converted for 24 alternate health care use until such time as the average annual occupancy in the 25 service area exceeds ninety-three percent and an adjoining service area exceeds 26 ninety-three percent based on the department's LTC-2 Report and the facility is 27 notified of the same. The facility shall then either re-license the beds as nursing 28 home beds within one year of receipt of the notice from the department, or the beds 29 will be deemed expired. Nothing herein shall be construed to preclude nursing homes Page 12 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 from taking beds out of alternate use at any time and using them as licensed beds 2 unless deemed expired. The prohibition contained in Paragraph (D)(2) of this Section 3 shall not apply to nursing home beds in alternate use. 4 §2116.1. Nursing facilities; facility need review; moratorium; exceptions 5 A.(1) The Louisiana Department of Health, in accordance with the 6 Administrative Procedure Act, shall establish a facility need review process for 7 nursing facilities consistent with the regulations for licensure and for Title XIX 8 of the Social Security Act. 9 (2) The department shall promulgate rules and regulations in accordance 10 with the Administrative Procedure Act to provide for facility need review. The 11 rules and regulations shall include but not be limited to the following: 12 (a) Criteria for review of nursing facility beds to determine if there is a 13 need for additional beds. 14 (b) Specific duties of the department to review proposals for new 15 facilities and determine the need therefor. 16 (c) Appropriate methodology for the collection of data necessary for the 17 administration of the program. 18 (d) Procedures to grant and revoke approvals. 19 (e) Establishment of application fees. 20 (f) Procedures for review of applications by the department. 21 (g) Procedures to request a fair hearing from a determination made by 22 the department. 23 (h) Provisions for judicial review from the decision rendered after a fair 24 hearing. 25 (3) No new facility, service, or beds shall be licensed and certified to 26 participate in the Title XIX program without the approval of the department 27 based upon a determination of a need therefor in accordance with the 28 provisions of this Section. Any person establishing, managing, or operating a 29 new facility, service, or bed without the approval required by this Section shall Page 13 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 be prohibited from participating in the Title XIX program. 2 B.(1) There shall be a moratorium on nursing facilities and additional 3 beds for nursing facilities which shall be in effect until July 1, 2027. 4 (2) The moratorium provided for in Paragraph (1) of this Subsection 5 shall not apply to the following: 6 (a) Replacement of existing facilities, provided that there is no increase 7 in existing nursing home beds at the replacement facility. However, a nursing 8 home which has relocated, as the result of an executive order or declaration of 9 emergency or disaster issued in accordance with R.S. 29:724 shall not be 10 allowed to permanently relocate such facility outside of the geographic area for 11 which the original facility was licensed. 12 (b) Replacement of nursing facility beds with adult residential care home 13 beds, either through new construction or through renovation and conversion. 14 Such replacement shall be subject to licensing rules and regulations and budget 15 neutrality provisions promulgated by the Louisiana Department of Health. 16 (c) A nursing facility located in a service area which has less than 17 ninety-three percent occupancy that temporarily converts a number of licensed 18 beds to an alternate use. The beds may be converted for alternate health care 19 use until such time as the average annual occupancy in the service area exceeds 20 ninety-three percent and an adjoining service area exceeds ninety-three percent 21 based on the department's LTC-2 Report or its successor and the facility is 22 notified of the same. The facility shall then either relicense the beds as nursing 23 home beds within one year of receipt of the notice from the department, or the 24 beds will be deemed expired. Nothing in this Paragraph shall be construed to 25 preclude nursing facilities from taking beds out of alternate use at any time and 26 using them as licensed beds unless they are deemed expired. 27 (d) Nursing home beds in alternate use. 28 C.(1) Except as provided in Paragraphs (2), (3), and (4) of this 29 Subsection, the Louisiana Department of Health shall suspend approval, Page 14 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 certification, and enrollment of nursing facility beds which were previously 2 approved to participate in the Title XIX program under a facility need review 3 process, Section 1122 process, or any predecessor needs review process, unless 4 the beds are certified and enrolled in the Title XIX program by December 31, 5 1997. The suspension shall be for the length of the moratorium imposed 6 pursuant to Subsection B of this Section. 7 (2) The suspension shall not apply to existing approvals for replacement 8 of existing nursing facilities, or approvals which are under judicial review, on 9 August 15, 1997. The suspension shall not apply to approvals for alternate use 10 of previously approved beds. 11 (3) In the case of previously approved but unbuilt nursing facilities or 12 beds, the department shall not suspend approval, certification, and enrollment 13 if construction has actually begun by June 30, 1998, and construction is 14 completed and the facilities or beds are actually certified and enrolled in the 15 Title XIX program by December 31, 1999. In such cases, the department shall 16 suspend approval, certification, and enrollment of previously approved beds not 17 certified and enrolled by December 31, 1999. 18 (4) In the case of previously approved but unbuilt nursing facilities or 19 beds, if construction has actually begun by June 30, 1998, and construction is 20 not completed and the facilities or beds are not actually certified and enrolled 21 in the Title XIX program by December 31, 1999, the secretary of the Louisiana 22 Department of Health may authorize the certification and enrollment of the 23 beds by December 31, 2001. However, the extension shall not be granted unless 24 the secretary determines that construction has not been completed due to 25 circumstances beyond the control of the applicant, a written request for an 26 extension was made prior to December 31, 1999, and financing has been 27 approved for the beds. These provisions shall only be applicable in the case of 28 a facility, the primary purpose of which is to replace an existing facility, but also 29 in so doing, enrolling additional beds. Page 15 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED 1 §2116.2. Nursing facilities; cost effective measures 2 A. The Louisiana Department of Health may promulgate rules to 3 accomplish cost effectiveness of beds that include but are not limited to the 4 following: 5 (1) A bed abeyance program to reduce nursing facility beds by ten 6 percent or more. Such an abeyance program shall include a timeframe in which 7 a determination is made as to whether beds should be brought out of abeyance 8 based upon a ninety-three percent occupancy rate within a service area. 9 (2) An increase in the minimum occupancy level required for a nursing 10 facility to fully recover its capital cost. 11 (3) A buy-back program, provided such a buy-back program is approved 12 by the Centers for Medicare and Medicaid Services and is eligible for federal 13 funds participation. 14 (4) A bed exchange program that allows a nursing facility to create adult 15 residential care beds based on the permanent elimination of existing nursing 16 facility beds. 17 * * * 18 §2180.2. Promulgation of rules 19 The department shall promulgate, in accordance with the Administrative 20 Procedure Act, licensing standards, rules, and regulations, regarding, but not limited 21 to the following: 22 * * * 23 (12) The Louisiana Department of Health shall develop and implement 24 policies and procedures to require ICF/DD providers to notify new residents 25 and their families and guardians of sex offenders living in their facilities upon 26 admission. The notification shall continue for as long as the information is 27 considered a public record. During the annual licensing process, health 28 standards surveyors shall verify the providers' compliance with the policy. Page 16 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 30 SLS 22RS-20 ENGROSSED The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Brandi Cannon. DIGEST SB 30 Engrossed 2022 Regular Session Fred Mills Present law establishes a facility need review process within the Louisiana Department of Health (LDH) to determine if there is a need for any new or additional facilities, providers, programs, services, or beds. Proposed law identifies the healthcare providers that are subject to facility need review and provides for the creation and composition of a facility need review committee, the review process used by the committee, and the rights of the applicant subject to review. Proposed law provides that facility need review must be satisfied before a provider can proceed with licensure and Medicaid provider certification. Present law provides for a nursing facility moratorium and certain exceptions. Proposed law moves provisions in present law relative to the moratorium and exceptions into a new section and deletes obsolete provisions. Present law provides that the nursing facility moratorium shall be in effect until July 1, 2027. Proposed law retains present law and provides that nursing facilities are subject to facility need review in absence of the moratorium. Present law provides for certain cost effective measures that may be accomplished by a department waiver. Proposed law moves provisions in present law relative to cost effective measures into a new section. Effective August 1, 2022. (Amends R.S. 40:2116; adds R.S. 40:2009.4(C), 2116.1, 2116.2, and 2180.2(12)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Health and Welfare to the original bill 1. Clarifies that a facility need review may be conducted prior to licensure or certification to participate in the Louisiana Medicaid program. 2. Removes adult day healthcare providers and adult residential care providers from the list of providers subject to facility need review. 3. Provides for the supplemental review process including an in-person or virtual meeting between the applicant and the FNR committee or its designees. 4. Provides for the revocation, suspension, and expiration of FNR approvals. 5. Provides for a facility need review process for nursing facilities in absence of a moratorium. 6. Repeals additional present law provisions that are obsolete. 7. Restores and relocates present law relative to nursing facility beds approved prior to the moratorium. 8. Makes technical change. Page 17 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.