MD
Maryland House Bill HB1122

Maryland 2024 Regular Session

Maryland House Bill HB1122 Compare Versions

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1- WES MOORE, Governor Ch. 817
21
3-– 1 –
4-Chapter 817
5-(House Bill 1122)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb1122*
810
9-Maryland Health Care Commission – Nursing Homes – Acquisitions
11+HOUSE BILL 1122
12+J3 (4lr2718)
13+ENROLLED BILL
14+— Health and Government Operations/Finance —
15+Introduced by Delegate Kerr Delegates Kerr, Alston, Bagnall, Bhandari, Chisholm,
16+Cullison, Guzzone, Hill, Hutchinson, S. Johnson, Kaiser, Kipke, R. Lewis,
17+Lopez, Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Szeliga,
18+Taveras, White Holland, and Woods
1019
11-FOR the purpose of requiring a person, before making a contractual agreement for the
12-closing on an acquisition of a nursing home, to submit a request for acquisition to
13-the Maryland Health Care Commission and provide certain notice to certain
14-individuals; establishing requirements regarding the approval or denial of a request
15-for acquisition; providing for judicial review of a final decision of the Commission
16-regarding a request for acquisition of a nursing home; requiring a person who
17-acquires a nursing home to submit a certain report to the Commission on a certain
18-basis; and generally relating to the acquisition of a nursing home.
20+Read and Examined by Proofreaders:
1921
20-BY repealing and reenacting, without amendments,
21- Article – Health – General
22-Section 19–114(a)
23- Annotated Code of Maryland
24- (2023 Replacement Volume)
22+_______________________________________________
23+Proofreader.
24+_______________________________________________
25+Proofreader.
2526
26-BY adding to
27- Article – Health – General
28-Section 19–114(a–1) and 19–120.2
29- Annotated Code of Maryland
30- (2023 Replacement Volume)
27+Sealed with the Great Seal and presented to the Governor, for his approval this
3128
32-BY repealing and reenacting, with amendments,
33- Article – Health – General
34-Section 19–115, 19–120(k)(6)(ii), 19–1401.1, and 19–1401.2
35- Annotated Code of Maryland
36- (2023 Replacement Volume)
29+_______ day of _______________ at ________________________ o’clock, ________M.
3730
38- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
39-That the Laws of Maryland read as follows:
31+______________________________________________
32+Speaker.
4033
41-Article – Health – General
34+CHAPTER ______
4235
43-19–114.
36+AN ACT concerning 1
4437
45- (a) In this Part II of this subtitle the following words have the meanings
46-indicated.
38+Maryland Health Care Commission – Nursing Homes – Acquisitions 2
4739
48- (A–1) “ACQUISITION” MEANS:
49- Ch. 817 2024 LAWS OF MARYLAND
40+FOR the purpose of requiring a person, before making a contractual agreement for the 3
41+closing on an acquisition of a nursing home, to submit a request for acquisition to 4
42+the Maryland Health Care Commission and provide certain notice to certain 5
43+individuals; establishing requirements regarding the approval or denial of a request 6
44+for acquisition; providing for judicial review of a final decision of the Commission 7
45+regarding a request for acquisition of a nursing home; requiring a person who 8
46+acquires a nursing home to submit a certain report to the Commission on a certain 9
47+basis; and generally relating to the acquisition of a nursing home. 10
5048
51-– 2 –
52- (1) A TRANSFER OF STOCK OR ASSETS THAT RESULTS IN A CHANGE
53-OF THE PERSON THAT C ONTROLS A HEALTH CAR E FACILITY; OR
49+BY repealing and reenacting, without amendments, 11 2 HOUSE BILL 1122
5450
55- (2) THE TRANSFER OF MORE THAN 25% OF STOCK OR OWNERSHI P
56-INTEREST IN A HEALTH CARE FACILITY.
5751
58-19–115.
52+ Article – Health – General 1
53+Section 19–114(a) 2
54+ Annotated Code of Maryland 3
55+ (2023 Replacement Volume) 4
5956
60- (a) In addition to the duties set forth elsewhere in this subtitle, in this Part II of
61-this subtitle, the Commission shall:
57+BY adding to 5
58+ Article – Health – General 6
59+Section 19–114(a–1) and 19–120.2 7
60+ Annotated Code of Maryland 8
61+ (2023 Replacement Volume) 9
6262
63- (1) Act as the State agency to represent the State under Title VI of the
64-federal Public Health Service Act; AND
63+BY repealing and reenacting, with amendments, 10
64+ Article – Health – General 11
65+Section 19–115, 19–120(k)(6)(ii), 19–1401.1, and 19–1401.2 12
66+ Annotated Code of Maryland 13
67+ (2023 Replacement Volume) 14
6568
66- (2) Periodically participate in or perform analyses and studies that relate
67-to:
69+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
70+That the Laws of Maryland read as follows: 16
6871
69- (i) Adequacy of services and financial resources to meet the needs of
70-the population;
72+Article – Health – General 17
7173
72- (ii) Distribution of health care resources;
74+19–114. 18
7375
74- (iii) Allocation of health care resources;
76+ (a) In this Part II of this subtitle the following words have the meanings 19
77+indicated. 20
7578
76- (iv) Costs of health care in relationship to available financial
77-resources; or
79+ (A–1) “ACQUISITION” MEANS: 21
7880
79- (v) Any other appropriate matter[; and
81+ (1) A TRANSFER OF STOCK OR ASSETS THAT RESULTS IN A CHANGE 22
82+OF THE PERSON THAT C ONTROLS A HEALTH CAR E FACILITY; OR 23
8083
81- (3) When evaluating a notice of acquisition or transfer of interest of a
82-nursing home in accordance with § 19–120(k)(6)(ii) of this title, provide the Commission’s
83-written findings and recommendations to the Office of Health Care Quality, including:
84+ (2) THE TRANSFER OF MORE THAN 25% OF STOCK OR OWNERSHI P 24
85+INTEREST IN A HEALTH CARE FACILITY. 25
8486
85- (i) Quality ratings of facilities currently or previously owned, within
86-or outside the State, by the purchaser of the health care facility, based on the most recent
87-Five–Star Quality Rating System established by the Centers for Medicare and Medicaid
88-Services;
87+19–115. 26
8988
90- (ii) For the immediately preceding 3–year period:
89+ (a) In addition to the duties set forth elsewhere in this subtitle, in this Part II of 27
90+this subtitle, the Commission shall: 28
9191
92- 1. Evidence that facilities currently or previously owned,
93-within or outside the State, by the purchaser of the health care facility maintained quality
94-assessment and assurance committees that met at least quarterly;
95- WES MOORE, Governor Ch. 817
92+ (1) Act as the State agency to represent the State under Title VI of the 29
93+federal Public Health Service Act; AND 30
9694
97-– 3 –
98- 2. Inspection of care reports and corrective action plans of
99-facilities currently or previously owned, within or outside the State, by the purchaser of the
100-health care facility;
95+ (2) Periodically participate in or perform analyses and studies that relate 31
96+to: 32
97+ HOUSE BILL 1122 3
10198
102- 3. Licensing and certification surveys and corrective action
103-plans of facilities currently or previously owned, within or outside the State, by the
104-purchaser of the health care facility; and
10599
106- 4. Lawsuits or arbitration filings by any patient or patient
107-representative against facilities currently or previously owned, within or outside the State,
108-by the purchaser of the health care facility;
100+ (i) Adequacy of services and financial resources to meet the needs of 1
101+the population; 2
109102
110- (iii) The Tax Identification Number of each purchaser; and
103+ (ii) Distribution of health care resources; 3
111104
112- (iv) The personal Centers for Medicare and Medicaid Services
113-Certification Number of each purchaser].
105+ (iii) Allocation of health care resources; 4
114106
115- [(b) The findings and recommendations required to be provided to the Office of
116-Health Care Quality under subsection (a)(3) of this section shall include a summary of the
117-findings and the basis for the recommendations.]
107+ (iv) Costs of health care in relationship to available financial 5
108+resources; or 6
118109
119- [(c)] (B) In addition to the duties set forth elsewhere in this Part II of this
120-subtitle, the Governor shall direct, as necessary, a State officer or agency to cooperate in
121-carrying out the functions of the Commission.
110+ (v) Any other appropriate matter[; and 7
122111
123- [(d)] (C) This State recognizes the federal act and any amendment to the federal
124-act that does not require State legislation to be effective. However, if the federal act is
125-repealed or expires, this Part II of this subtitle remains in effect.
112+ (3) When evaluating a notice of acquisition or transfer of interest of a 8
113+nursing home in accordance with § 19–120(k)(6)(ii) of this title, provide the Commission’s 9
114+written findings and recommendations to the Office of Health Care Quality, including: 10
126115
127-19–120.
116+ (i) Quality ratings of facilities currently or previously owned, within 11
117+or outside the State, by the purchaser of the health care facility, based on the most recent 12
118+Five–Star Quality Rating System established by the Centers for Medicare and Medicaid 13
119+Services; 14
128120
129- (k) (6) This subsection does not apply to:
121+ (ii) For the immediately preceding 3–year period: 15
130122
131- (ii) Acquisition AN ACQUISITION of a health care facility if[, at]:
123+ 1. Evidence that facilities currently or previously owned, 16
124+within or outside the State, by the purchaser of the health care facility maintained quality 17
125+assessment and assurance committees that met at least quarterly; 18
132126
133- 1. AT least 30 days before making the contractual
134-arrangement to acquire the facility, written notice of the intent to make the arrangement
135-is filed with the Commission and the Commission does not find, within 30 days after the
136-Commission receives notice, that the health services or bed capacity of the facility will be
137-changed, provided that, for a merger with or acquisition of an existing general hospice, the
138-purchaser of the general hospice may only acquire the authority to provide home–based
139-hospice services in jurisdictions in which the seller of the general hospice is licensed to
140-provide home–based hospice services; AND OR AND
141- Ch. 817 2024 LAWS OF MARYLAND
127+ 2. Inspection of care reports and corrective action plans of 19
128+facilities currently or previously owned, within or outside the State, by the purchaser of the 20
129+health care facility; 21
142130
143-– 4 –
144- 2. THE FACILITY IS A NUR SING HOME AND FOR AN
145-ACQUISITION OF A NUR SING HOME, THE ACQUISITION HAS BEEN APPROVED IN
146-ACCORDANCE WITH § 19–120.2 OF THIS SUBTITLE;
131+ 3. Licensing and certification surveys and corrective action 22
132+plans of facilities currently or previously owned, within or outside the State, by the 23
133+purchaser of the health care facility; and 24
147134
148-19–120.2.
135+ 4. Lawsuits or arbitration filings by any patient or patient 25
136+representative against facilities currently or previously owned, within or outside the State, 26
137+by the purchaser of the health care facility; 27
149138
150- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
151-INDICATED.
139+ (iii) The Tax Identification Number of each purchaser; and 28
152140
153- (2) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF
154-THE COMMISSION.
141+ (iv) The personal Centers for Medicare and Medicaid Services 29
142+Certification Number of each purchaser]. 30
143+ 4 HOUSE BILL 1122
155144
156- (3) “NURSING HOME ” HAS THE MEANING STAT ED IN § 19–1401 OF
157-THIS TITLE.
158145
159- (4) “REQUEST FOR ACQUISITI ON” MEANS A REQUEST FOR THE
160-COMMISSION TO APPROVE THE ACQUISITION OF A NURSING HOME .
146+ [(b) The findings and recommendations required to be provided to the Office of 1
147+Health Care Quality under subsection (a)(3) of this section shall include a summary of the 2
148+findings and the basis for the recommendations.] 3
161149
162- (B) A PERSON SHALL PROVIDE NOTICE TO THE COMMISSION AT LEAST 30
163-DAYS BEFORE THE CLOS ING OF A CHANGE OF O WNERSHIP OF A NURSIN G HOME
164-THAT:
150+ [(c)] (B) In addition to the duties set forth elsewhere in this Part II of this 4
151+subtitle, the Governor shall direct, as necessary, a State officer or agency to cooperate in 5
152+carrying out the functions of the Commission. 6
165153
166- (1) INVOLVES AT LEAST A 5% TRANSFER IN OWNERSHI P INTEREST;
167-AND
154+ [(d)] (C) This State recognizes the federal act and any amendment to the federal 7
155+act that does not require State legislation to be effective. However, if the federal act is 8
156+repealed or expires, this Part II of this subtitle remains in effect. 9
168157
169- (2) IS NOT AN ACQUISITION THAT REQUIRES APPROV AL UNDER
170-SUBSECTION (C) OF THIS SECTION.
158+19–120. 10
171159
172- (B) (C) (1) THIS SUBSECTION DOES NOT APPLY TO AN ACQU ISITION
173-THAT INVOLVES ONLY C HANGES OF OWNERSHIP INTERESTS AMONG EXIS TING
174-OWNERS OF A NURSING HOME.
160+ (k) (6) This subsection does not apply to: 11
175161
176- (2) AT LEAST 120 60 DAYS BEFORE MAKING A CONTRACTUAL
177-ARRANGEMENT FOR THE CLOSING DATE OF THE ACQUISITION OF A NURSING HOME ,
178-A PERSON SHALL :
162+ (ii) Acquisition AN ACQUISITION of a health care facility if[, at]: 12
179163
180- (1) (I) SUBMIT TO THE COMMISSION A REQUEST FOR
181-ACQUISITION; AND
164+ 1. AT least 30 days before making the contractual 13
165+arrangement to acquire the facility, written notice of the intent to make the arrangement 14
166+is filed with the Commission and the Commission does not find, within 30 days after the 15
167+Commission receives notice, that the health services or bed capacity of the facility will be 16
168+changed, provided that, for a merger with or acquisition of an existing general hospice, the 17
169+purchaser of the general hospice may only acquire the authority to provide home–based 18
170+hospice services in jurisdictions in which the seller of the general hospice is licensed to 19
171+provide home–based hospice services; AND OR AND 20
182172
183- (2) (II) PROVIDE NOTICE TO THE RESIDENTS, RESIDENT
184-REPRESENTATIVES , AND STAFF EMPLOYEES OF THE NURSING HOME THAT:
185- WES MOORE, Governor Ch. 817
173+ 2. THE FACILITY IS A NUR SING HOME AND FOR AN 21
174+ACQUISITION OF A NUR SING HOME, THE ACQUISITION HAS BEEN APPROVED IN 22
175+ACCORDANCE WITH § 19–120.2 OF THIS SUBTITLE; 23
186176
187-– 5 –
188- (I) 1. THE REQUEST FOR ACQUI SITION WAS SUBMITTED TO
189-THE COMMISSION; AND
177+19–120.2. 24
190178
191- (II) 2. THERE WILL BE AN OPPO RTUNITY TO SUBMIT
192-COMMENTS IN ACCORDAN CE WITH SUBSECTION (E) (F) OF THIS SECTION.
179+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANI NGS 25
180+INDICATED. 26
193181
194- (C) (D) (1) THE EXECUTIVE DIRECTOR SHALL REVIEW A COMPLETED
195-REQUEST FOR ACQUISIT ION WITHIN 60 45 DAYS AFTER RECEIVING THE COMPLETED
196-REQUEST FROM THE APPLICANT .
182+ (2) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF 27
183+THE COMMISSION. 28
197184
198- (2) THE EXECUTIVE DIRECTOR, IN CONSULTATION WITH THE
199-SECRETARY OR THE SECRETARY’S DESIGNEE, MAY:
185+ (3) “NURSING HOME ” HAS THE MEANING STAT ED IN § 19–1401 OF 29
186+THIS TITLE. 30
200187
201- (I) APPROVE THE ACQUISITI ON;
188+ (4) “REQUEST FOR ACQUISITI ON” MEANS A REQUEST FOR THE 31
189+COMMISSION TO APPROVE THE ACQUISIT ION OF A NURSING HOM E. 32
190+ HOUSE BILL 1122 5
202191
203- (II) APPROVE THE ACQUISITI ON WITH CONDITIONS ;
204192
205- (III) DENY THE ACQUISITION ; OR
193+ (B) A PERSON SHALL PROVIDE NOTICE TO THE COMMISSION AT LEAST 30 1
194+DAYS BEFORE THE CLOS ING OF A CHANGE OF O WNERSHIP OF A NURSIN G HOME 2
195+THAT: 3
206196
207- (IV) REFER THE REQUEST FOR ACQUISITION TO THE
208-COMMISSION FOR A FINA L DECISION.
197+ (1) INVOLVES AT LEAST A 5% TRANSFER IN OWNERSHI P INTEREST; 4
198+AND 5
209199
210- (D) (E) TO APPROVE A REQUEST SUBMITTED UNDER SUBS ECTION (B) (C)
211-OF THIS SECTION, THE EXECUTIVE DIRECTOR MUST FIND TH AT THE ACQUISITION :
200+ (2) IS NOT AN ACQUISITION THAT REQUIRES APPROV AL UNDER 6
201+SUBSECTION (C) OF THIS SECTION. 7
212202
213- (1) IS CONSISTENT WITH TH E STATE HEALTH PLAN; AND
203+ (B) (C) (1) THIS SUBSECTION DOES NOT APPLY TO AN ACQU ISITION 8
204+THAT INVOLVES ONLY C HANGES OF OWNERSHIP INTERESTS AMONG EXIS TING 9
205+OWNERS OF A NURSING HOME. 10
214206
215- (2) WILL RESULT IN THE DE LIVERY OF MORE EFFIC IENT AND
216-EFFECTIVE HEALTH CAR E SERVICES; AND
207+ (2) AT LEAST 120 60 DAYS BEFORE MAKING A CONTRACTUAL 11
208+ARRANGEMENT FOR THE CLOSING DATE OF THE ACQUISITION OF A NURSING HOME , 12
209+A PERSON SHALL : 13
217210
218- (3) SUBJECT TO SUBSECTION (E) (F) OF THIS SECTION , IS IN THE
219-PUBLIC INTEREST .
211+ (1) (I) SUBMIT TO THE COMMISSION A REQUEST FOR 14
212+ACQUISITION; AND 15
220213
221- (E) (F) IN DETERMINING WHETHE R AN ACQUISITION OF A NURSING HOME
222-IS IN THE PUBLIC INT EREST, THE EXECUTIVE DIRECTOR SHALL :
214+ (2) (II) PROVIDE NOTICE TO THE RESIDENTS, RESIDENT 16
215+REPRESENTATIVES , AND STAFF EMPLOYEES OF THE NURSING HOME THAT: 17
223216
224- (1) SOLICIT AND ACCEPT CO MMENTS FROM INDIVIDU ALS WHO:
217+ (I) 1. THE REQUEST FOR ACQUI SITION WAS SUBMITTED TO 18
218+THE COMMISSION; AND 19
225219
226- (I) RESIDE IN THE NURSING HOME ;
220+ (II) 2. THERE WILL BE AN OPPO RTUNITY TO SUBMIT 20
221+COMMENTS IN ACCORDAN CE WITH SUBSECTION (E) (F) OF THIS SECTION. 21
227222
228- (II) HAVE FAMILY MEMBERS W HO RESIDE IN THE NUR SING
229-HOME; OR
230- Ch. 817 2024 LAWS OF MARYLAND
223+ (C) (D) (1) THE EXECUTIVE DIRECTOR SHALL REVIEW A COMPLETED 22
224+REQUEST FOR ACQUISIT ION WITHIN 60 45 DAYS AFTER RECEIVING THE COMPLETED 23
225+REQUEST FROM THE APPLICANT . 24
231226
232-– 6 –
233- (III) ARE EMPLOYED AT EMPLOYEES OF THE NURSING HOME ;
234-AND
227+ (2) THE EXECUTIVE DIRECTOR, IN CONSULTATION WITH THE 25
228+SECRETARY OR THE SECRETARY’S DESIGNEE, MAY: 26
235229
236- (2) CONSULT WITH THE ATTORNEY GENERAL ON WHETHER TH E
237-ACQUISITION RAISES P UBLIC INTEREST CONCE RNS.
230+ (I) APPROVE THE ACQUISITI ON; 27
238231
239- (F) (G) IF THE EXECUTIVE DIRECTOR REFERS A REQ UEST FOR
240-ACQUISITION TO THE COMMISSION UNDER SUBS ECTION (C)(2)(IV) (D)(2)(IV) OF
241-THIS SECTION , THE COMMISSION SHALL USE THE CRITERIA SPECIFI ED IN
242-SUBSECTION (D) SUBSECTIONS (E) AND (F) OF THIS SECTION OR AND REGULATION S
243-ADOPTED BY THE COMMISSION TO MAKE A FINAL DECISION WITHIN 60 DAYS AFTER
244-RECEIVING THE COMPLE TED REQUEST FROM THE APPLICANT.
232+ (II) APPROVE THE ACQUISITI ON WITH CONDITIONS ; 28
245233
246- (G) (H) IF THE EXECUTIVE DIRECTOR DENIES A REQ UEST FOR
247-ACQUISITION OR IMPOSES A CONDITI ON ON THE APPROVAL O F THE ACQUISITION , A
248-PERSON THAT IS AN INTERESTED A PARTY TO THE ACQUISI TION MAY SUBMIT A
249-WRITTEN REQUEST FOR THE COMMISSION TO REVIEW THE DECISION IN
250-ACCORDANCE WITH REGU LATIONS ADOPTED BY T HE COMMISSION.
234+ (III) DENY THE ACQUISITION ; OR 29
235+ 6 HOUSE BILL 1122
251236
252- (H) (I) (1) A DECISION OF THE COMMISSION UNDER SUBS ECTION (F)
253-OR (G) (G) OR (H) OF THIS SECTION SHAL L BE A FINAL DECISIO N FOR THE PURPOSE
254-OF JUDICIAL REVIEW .
255237
256- (2) A PERSON THAT IS AN INTERESTED A PARTY TO THE ACQUISI TION
257-MAY TAKE A DIRECT JU DICIAL APPEAL WITHIN 30 DAYS AFTER THE COMMISSION
258-MAKES THE FINAL DECI SION.
238+ (IV) REFER THE REQUEST FOR ACQUISITION TO THE 1
239+COMMISSION FOR A FINA L DECISION. 2
259240
260- (3) THE COMMISSION SHALL SEND EACH FINAL DECISION TO THE
261-SECRETARY, THE SECRETARY OF AGING, THE OFFICE OF HEALTH CARE QUALITY,
262-AND THE OFFICE OF THE ATTORNEY GENERAL, AND THE STATE LONG–TERM CARE
263-OMBUDSMAN .
241+ (D) (E) TO APPROVE A REQUEST SUBMITTED UNDER SUBS ECTION (B) (C) 3
242+OF THIS SECTION, THE EXECUTIVE DIRECTOR MUST FIND TH AT THE ACQUISITION : 4
264243
265- (I) (J) (1) ON OR BEFORE JULY 1 IMMEDIATELY F OLLOWING THE
266-ACQUISITION OF A NUR SING HOME AND EVERY EACH YEAR FOR 3 YEARS
267-THEREAFTER , THE PERSON THAT ACQU IRED THE NURSING HOM E SHALL SUBMIT A
268-REPORT TO THE COMMISSION IN ACCORDA NCE WITH REGULATIONS ADOPTED BY
269-THE COMMISSION.
244+ (1) IS CONSISTENT WITH TH E STATE HEALTH PLAN; AND 5
270245
271- (2) THE COMMISSION SHALL PROV IDE THE REPORT REQUI RED
272-UNDER PARAGRAPH (1) OF THIS SUBSECTION T O THE SECRETARY, THE SECRETARY
273-OF AGING, THE OFFICE OF HEALTH CARE QUALITY, AND THE OFFICE OF THE
274-ATTORNEY GENERAL, AND THE STATE LONG–TERM CARE OMBUDSMAN .
275- WES MOORE, Governor Ch. 817
246+ (2) WILL RESULT IN THE DE LIVERY OF MORE EFFIC IENT AND 6
247+EFFECTIVE HEALTH CARE SERVICES ; AND 7
276248
277-– 7 –
278- (J) (K) (1) THE COMMISSION SHALL ADOP T REGULATIONS THROUGH
279-AN UPDATE TO THE STATE HEALTH PLAN FOR FACILITIES AND SERVICES TO CARRY
280-OUT THE PROVISIONS O F THIS SECTION.
249+ (3) SUBJECT TO SUBSECTION (E) (F) OF THIS SECTION , IS IN THE 8
250+PUBLIC INTEREST . 9
281251
282- (2) THE REGULATIONS ADOPT ED UNDER THIS SUBSEC TION SHALL:
252+ (E) (F) IN DETERMINING WHETHE R AN ACQUISITION OF A NURSING HOME 10
253+IS IN THE PUBLIC INT EREST, THE EXECUTIVE DIRECTOR SHALL : 11
283254
284- (I) REQUIRE THE PERSON TH AT ACQUIRED OWNERSHIP O F A
285-NURSING HOME TO :
255+ (1) SOLICIT AND ACCEPT CO MMENTS FROM INDIVIDUALS W HO: 12
286256
287- 1. REDUCE THE NUMBER OF RESIDENT ROOMS IN TH E
288-NURSING HOME THAT CO NTAIN MORE THAN TWO BEDS IN ACCORDANCE W ITH
289-STANDARDS ESTABLISHE D BY THE COMMISSION; OR
257+ (I) RESIDE IN THE NURSING HOME; 13
290258
291- 2. RECEIVE A WAIVER FROM THE REQUIREMENT
292-ESTABLISHE D UNDER ITEM 1 OF THIS ITEM FROM TH E EXECUTIVE DIRECTOR IN
293-ACCORDANCE WITH STAN DARDS ESTABLISHED BY THE COMMISSION;
259+ (II) HAVE FAMILY MEMBERS W HO RESIDE IN THE NUR SING 14
260+HOME; OR 15
294261
295- (II) 1. IF NECESSARY, ALLOW THE PERSON THA T ACQUIRED
296-OWNERSHIP OF A NURSI NG HOME TO TEMPORARI LY DELICENSE BEDS FO R AT LEAST
297-3 YEARS IMMEDIATELY FOLLOWIN G THE ACQUISITION TO REDUCE THE NUMBER OF
298-RESIDENT ROOMS THAT CONTAIN MORE THAN TW O BEDS; AND
262+ (III) ARE EMPLOYED AT EMPLOYEES OF THE NURSING HOME ; 16
263+AND 17
299264
300- 2. AUTHORIZE THE COMMISSION TO EXTEND THE
301-PERIOD THE BEDS ARE TEMPORARILY DELICENS ED BEYOND 3 YEARS FOR GOOD
302-CAUSE SHOWN , INCLUDING DEMON STRATED PROGRESS TOW ARD ELIMINATING
303-MULTIBEDDED ROOMS BY EXPANDING THE EXISTI NG FACILITY OR TRANS FERRING
304-THE BEDS TO ANOTHER FACILITY WITHIN A ME RGED ASSET SYSTEM IN THE SAME
305-JURISDICTION;
265+ (2) CONSULT WITH THE ATTORNEY GENERAL ON WHETHER TH E 18
266+ACQUISITION RAISES PUBLIC INTERE ST CONCERNS. 19
306267
307- (II) (III) ESTABLISH STANDARDS F OR THE EVALUATION OF
308-THE QUALITY OF THE FACILITIES NURSING HOMES CURRENTLY OR PREVIOU SLY
309-OWNED, WHETHER IN THE STATE OR OUTSIDE THE STATE, BY THE PERSON THAT
310-SUBMITTED A REQUEST FOR ACQUISITION ; AND
268+ (F) (G) IF THE EXECUTIVE DIRECTOR REFERS A REQ UEST FOR 20
269+ACQUISITION TO THE COMMISSION UNDER SUBS ECTION (C)(2)(IV) (D)(2)(IV) OF 21
270+THIS SECTION , THE COMMISSION SHALL USE THE CRITERIA SPECIFI ED IN 22
271+SUBSECTION (D) SUBSECTIONS (E) AND (F) OF THIS SECTION OR AND REGULATIONS 23
272+ADOPTED BY THE COMMISSION TO MAKE A FINAL DECISION WITHIN 60 DAYS AFTER 24
273+RECEIVING THE COMPLE TED REQUEST FROM THE APPLICANT. 25
311274
312- (III) (IV) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION ,
313-ESTABLISH CRITERIA F OR THE EXECUTIVE DIRECTOR AND THE COMMISSION TO
314-CONSIDER WHEN MAKING A DECISION REGARDING A REQUEST FOR ACQUIS ITION.
275+ (G) (H) IF THE EXECUTIVE DIRECTOR DENIES A REQ UEST FOR 26
276+ACQUISITION OR IMPOSES A CONDITION ON THE APP ROVAL OF THE ACQUISI TION, A 27
277+PERSON THAT IS AN INTERESTED A PARTY TO THE ACQUISI TION MAY SUBMIT A 28
278+WRITTEN REQUEST FOR THE COMMISSION TO REVIEW THE DECISION IN 29
279+ACCORDANCE WITH REGU LATIONS ADOPTED BY T HE COMMISSION. 30
280+ HOUSE BILL 1122 7
315281
316- (3) THE CRITERIA ESTABLIS HED BY THE COMMISSION UNDER
317-PARAGRAPH (2)(III) (2)(IV) OF THIS SUBSECTION S HALL REQUIRE THAT TH E
318-COMMISSION TAKE INTO CONSIDERATION WHETHE R ANY FACILITY NURSING HOME
319-CURRENTLY OR PREVIOU SLY OWNED, WITHIN OR OUTSIDE TH E STATE, BY THE
320-PERSON SUBMITTING TH E REQUEST, FOR THE PERIOD OF 3 YEARS IMMEDIATELY
321-PRECEDING THE SUBMIS SION OF THE REQUEST : Ch. 817 2024 LAWS OF MARYLAND
322282
323-– 8 –
283+ (H) (I) (1) A DECISION OF THE COMMISSION UNDER SUBS ECTION (F) 1
284+OR (G) (G) OR (H) OF THIS SECTION SHAL L BE A FINAL DECISIO N FOR THE PURPOSE 2
285+OF JUDICIAL REVIEW . 3
324286
325- (I) MAINTAINED A QUALITY ASSESSMENT AND ASSUR ANCE
326-COMMITTEE THAT MET A T LEAST QUARTERLY ;
287+ (2) A PERSON THAT IS AN INTERESTED A PARTY TO THE ACQUISI TION 4
288+MAY TAKE A DIRECT JU DICIAL APPEAL WITHIN 30 DAYS AFTER THE COMMISSION 5
289+MAKES THE FINAL DECI SION. 6
327290
328- (II) WAS THE SUBJECT OF AN ENFORCEMENT ACTION , A
329-SPECIAL FOCUS FACILI TY DESIGNATION , SURVEY, OR PLAN OF CORRECTIO N OR A
330-DEFICIENCY INVOLVING SERIOUS OR IMMEDIATE THREAT, ACTUAL HARM , OR
331-IMMEDIATE JEOPARDY TO A RESIDENT; OR
291+ (3) THE COMMISSION SHALL SEND EACH FINAL DECISION TO THE 7
292+SECRETARY, THE SECRETARY OF AGING, THE OFFICE OF HEALTH CARE QUALITY, 8
293+AND THE OFFICE OF THE ATTORNEY GENERAL, AND THE STATE LONG–TERM CARE 9
294+OMBUDSMAN . 10
332295
333- (III) WAS THE SUBJECT OF A LAWSUIT, A JUDGMENT, OR AN
334-ARBITRATION FINDING , FOLLOWING A COMPLAIN T FILED BY A RESIDENT OR,
335-RESIDENT REPRESENTATIVE , OR A GOVERNMENT AGEN CY.
296+ (I) (J) (1) ON OR BEFORE JULY 1 IMMEDIATELY FOLLOWIN G THE 11
297+ACQUISITION OF A NUR SING HOME AND EVERY EACH YEAR FOR 3 YEARS 12
298+THEREAFTER , THE PERSON THAT ACQU IRED THE NURSING HOM E SHALL SUBMIT A 13
299+REPORT TO THE COMMISSION IN ACCORDA NCE WITH REGULATIONS ADOPTED BY 14
300+THE COMMISSION. 15
336301
337-19–1401.1.
302+ (2) THE COMMISSION SHALL PROV IDE THE REPORT REQUI RED 16
303+UNDER PARAGRAPH (1) OF THIS SUBSECTION T O THE SECRETARY, THE SECRETARY 17
304+OF AGING, THE OFFICE OF HEALTH CARE QUALITY, AND THE OFFICE OF THE 18
305+ATTORNEY GENERAL, AND THE STATE LONG–TERM CARE OMBUDSMAN . 19
338306
339- (a) (1) In addition to the requirements for licensure of a related institution as
340-provided in this title, an applicant for licensure of a nursing home shall include in the
341-application the identity of:
307+ (J) (K) (1) THE COMMISSION SHALL ADOP T REGULATIONS THROUGH 20
308+AN UPDATE TO THE STATE HEALTH PLAN FOR FACILITIES AND SERVICES TO CARRY 21
309+OUT THE PROVISIONS O F THIS SECTION. 22
342310
343- (i) Any person with an ownership interest in the nursing home; and
311+ (2) THE REGULATIONS ADOPT ED UNDER THIS SUBSEC TION SHALL: 23
344312
345- (ii) Any management company, landlord, or other business entity
346-that will operate or contract with the applicant to manage the nursing home.
313+ (I) REQUIRE THE PERSON THAT ACQU IRED OWNERSHIP OF A 24
314+NURSING HOME TO : 25
347315
348- (2) (i) The person acquiring a nursing home shall provide the
349-Department with written notice of the acquisition or change in operator at the same time
350-as the notice required under [§ 19–120(k)(6)(ii)] § 19–120.2 of this title is filed with the
351-Maryland Health Care Commission.
316+ 1. REDUCE THE NUMBER OF RESIDENT ROOMS IN TH E 26
317+NURSING HOME THAT CO NTAIN MORE THAN TWO BEDS IN ACCORDANCE W ITH 27
318+STANDARDS ESTABLISHE D BY THE COMMISSION; OR 28
352319
353- (ii) For other changes to the information required under paragraph
354-(1) of this subsection, the nursing home shall notify the Department within 30 days after
355-the effective date of the change.
320+ 2. RECEIVE A WAIVER FROM THE REQUIR EMENT 29
321+ESTABLISHED UNDER IT EM 1 OF THIS ITEM FROM TH E EXECUTIVE DIRECTOR IN 30
322+ACCORDANCE WITH STAN DARDS ESTABLISHED BY THE COMMISSION; 31
356323
357- (b) An applicant for licensure shall submit to the Secretary or the Secretary’s
358-designee evidence:
324+ (II) 1. IF NECESSARY, ALLOW THE PERSON THA T ACQUIRED 32
325+OWNERSHIP OF A NURSI NG HOME TO TEMPORARI LY DELICENSE BEDS FO R AT LEAST 33 8 HOUSE BILL 1122
359326
360- (1) That affirmatively demonstrates the ability of the applicant to comply
361-with minimum standards of:
362327
363- (i) Medical care;
328+3 YEARS IMMEDIATELY FO LLOWING THE ACQUISIT ION TO REDUCE THE NU MBER OF 1
329+RESIDENT ROOMS THAT CONTAIN MORE THAN TW O BEDS; AND 2
364330
365- (ii) Nursing care;
331+ 2. AUTHORIZE THE COMMISSION TO EXTEND THE 3
332+PERIOD THE BEDS ARE TEMPORARILY DELICENS ED BEYOND 3 YEARS FOR GOOD 4
333+CAUSE SHOWN , INCLUDING DEMONSTRATE D PROGRESS TOWARD EL IMINATING 5
334+MULTIBEDDED ROOMS BY EXPANDING THE EXISTI NG FACILITY OR TRANS FERRING 6
335+THE BEDS TO ANOTHER FACILITY WITHIN A ME RGED ASSET SYSTEM IN THE SAME 7
336+JURISDICTION; 8
366337
367- (iii) Financial condition; and
368- WES MOORE, Governor Ch. 817
338+ (II) (III) ESTABLISH STANDARDS F OR THE EVALUATION OF 9
339+THE QUALITY OF THE FACILITIES NURSING HOMES CURRENTLY OR PREVIOU SLY 10
340+OWNED, WHETHER IN THE STATE OR OUTSIDE THE STATE, BY THE PERSON THAT 11
341+SUBMITTED A REQUEST FOR ACQUISITION ; AND 12
369342
370-– 9 –
371- (iv) Other applicable State or federal laws and regulations; [and]
343+ (III) (IV) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , 13
344+ESTABLISH CRITERIA F OR THE EXECUTIVE DIRECTOR AND THE COMMISSION TO 14
345+CONSIDER WHEN MAKING A DECISION REGARDING A REQUEST FOR ACQUIS ITION. 15
372346
373- (2) Regarding the regulatory compliance history and financial condition of
374-any health care facility owned or operated by the applicant in other jurisdictions; AND
347+ (3) THE CRITERIA ESTABLIS HED BY THE COMMISSION UNDER 16
348+PARAGRAPH (2)(III) (2)(IV) OF THIS SUBS ECTION SHALL REQUIRE THAT THE 17
349+COMMISSION TAKE INTO CONSIDERATION WHETHE R ANY FACILITY NURSING HOME 18
350+CURRENTLY OR PREVIOU SLY OWNED, WITHIN OR OUTSIDE TH E STATE, BY THE 19
351+PERSON SUBMITTING TH E REQUEST, FOR THE PERIOD OF 3 YEARS IMMEDIATELY 20
352+PRECEDING THE SUBMIS SION OF THE REQUEST : 21
375353
376- (3) THAT A REQUEST FOR AC QUISITION FOR THE NU RSING HOME WAS
377-APPROVED IN ACCORDAN CE WITH § 19–120.2 OF THIS TITLE.
354+ (I) MAINTAINED A QUALITY ASSESSMENT AND ASSUR ANCE 22
355+COMMITTEE THAT MET A T LEAST QUARTERLY ; 23
378356
379-19–1401.2.
357+ (II) WAS THE SUBJECT OF AN ENFORCEMENT ACTION , A 24
358+SPECIAL FOCUS FACILI TY DESIGNATION , SURVEY, OR PLAN OF CORRECTIO N OR A 25
359+DEFICIENCY INVOLVING SERIOUS OR IMMEDIATE THREAT , ACTUAL HARM , OR 26
360+IMMEDIATE JEOPARDY T O A RESIDENT; OR 27
380361
381- [(a)] On review of the information required under § 19–1401.1 of this subtitle and
382-any other information that is relevant to the ability of the applicant to operate a nursing
383-home, the Secretary may:
362+ (III) WAS THE SUBJECT OF A LAWSUIT, A JUDGMENT, OR AN 28
363+ARBITRATION FINDING , FOLLOWING A COMPLAIN T FILED BY A RESIDENT OR, 29
364+RESIDENT REPRESENTATIVE , OR A GOVERNMEN T AGENCY. 30
384365
385- (1) Approve an application for a license;
366+19–1401.1. 31
386367
387- (2) Deny an application for a license;
368+ (a) (1) In addition to the requirements for licensure of a related institution as 32
369+provided in this title, an applicant for licensure of a nursing home shall include in the 33
370+application the identity of: 34
371+ HOUSE BILL 1122 9
388372
389- (3) Approve an application for a license subject to conditions; or
390373
391- (4) Revoke a license.
374+ (i) Any person with an ownership interest in the nursing home; and 1
392375
393- [(b) Before taking action on a license under subsection (a) of this section, the
394-Secretary shall consider any findings and recommendations DECISIONS of the Maryland
395-Health Care Commission provided to the Office of Health Care Quality under § 19–115 §
396-19–120.2 of this title.]
376+ (ii) Any management company, landlord, or other business entity 2
377+that will operate or contract with the applicant to manage the nursing home. 3
397378
398- SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Health Care
399-Commission shall adopt the regulations required under § 19–120.2(j) of the Health –
400-General Article, as enacted by Section 1 of this Act, on or before January 1, 2025 to be
401-applicable to acquisitions executed after the adoption of the regulations.
379+ (2) (i) The person acquiring a nursing home shall provide the 4
380+Department with written notice of the acquisition or change in operator at the same time 5
381+as the notice required under [§ 19–120(k)(6)(ii)] § 19–120.2 of this title is filed with the 6
382+Maryland Health Care Commission. 7
402383
403- SECTION 3. AND BE IT FURTHER ENACTED, That this Act sha ll take effect
404-October 1, 2024.
384+ (ii) For other changes to the information required under paragraph 8
385+(1) of this subsection, the nursing home shall notify the Department within 30 days after 9
386+the effective date of the change. 10
405387
406-Approved by the Governor, May 16, 2024.
388+ (b) An applicant for licensure shall submit to the Secretary or the Secretary’s 11
389+designee evidence: 12
390+
391+ (1) That affirmatively demonstrates the ability of the applicant to comply 13
392+with minimum standards of: 14
393+
394+ (i) Medical care; 15
395+
396+ (ii) Nursing care; 16
397+
398+ (iii) Financial condition; and 17
399+
400+ (iv) Other applicable State or federal laws and regulations; [and] 18
401+
402+ (2) Regarding the regulatory compliance history and financial condition of 19
403+any health care facility owned or operated by the applicant in other jurisdictions; AND 20
404+
405+ (3) THAT A REQUEST FOR AC QUISITION FOR THE NU RSING HOME WAS 21
406+APPROVED IN ACCORDAN CE WITH § 19–120.2 OF THIS TITLE. 22
407+
408+19–1401.2. 23
409+
410+ [(a)] On review of the information required under § 19–1401.1 of this subtitle and 24
411+any other information that is relevant to the ability of the applicant to operate a nursing 25
412+home, the Secretary may: 26
413+
414+ (1) Approve an application for a license; 27
415+
416+ (2) Deny an application for a license; 28
417+
418+ (3) Approve an application for a license subject to conditions; or 29
419+ 10 HOUSE BILL 1122
420+
421+
422+ (4) Revoke a license. 1
423+
424+ [(b) Before taking action on a license under subsection (a) of this section, the 2
425+Secretary shall consider any findings and recommendations DECISIONS of the Maryland 3
426+Health Care Commission provided to the Office of Health Care Quality under § 19–115 § 4
427+19–120.2 of this title.] 5
428+
429+ SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Health Care 6
430+Commission shall adopt the regulations required under § 19–120.2(j) of the Health – 7
431+General Article, as enacted by Section 1 of this Act, on or before January 1, 2025 to be 8
432+applicable to acquisitions executed after the adoption of the regulations. 9
433+
434+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
435+October 1, 2024. 11
436+
437+
438+
439+
440+
441+Approved:
442+________________________________________________________________________________
443+ Governor.
444+________________________________________________________________________________
445+ Speaker of the House of Delegates.
446+________________________________________________________________________________
447+ President of the Senate.