Michigan 2023-2024 Regular Session

Michigan House Bill HB5477 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 HOUSE BILL NO. 5477 A bill to amend 1978 PA 368, entitled "Public health code," by amending sections 2612, 20101, 20145, 20155, 20161, 20164, 20165, 20166, 21551, 21562, and 21563 (MCL 333.2612, 333.20101, 333.20145, 333.20155, 333.20161, 333.20164, 333.20165, 333.20166, 333.21551, 333.21562, and 333.21563), section 2612 as added by 1990 PA 138, sections 20101 and 20166 as amended by 1988 PA 332, sections 20145 and 21551 as amended by 2022 PA 265, sections 20155 and 20164 as amended by 2022 PA 187, section 20161 as amended by 2023 PA 138, section 20165 as amended by 2008 PA 39, and sections 21562 and 21563 as added by 1990 PA 252; and to repeal acts and parts of acts. the people of the state of michigan enact:
22
33
44
55
66
77
88
99
1010
1111
1212
1313
1414
1515
1616
1717
1818
1919
2020
2121
2222
2323
2424
2525
2626
2727 HOUSE BILL NO. 5477
2828
2929
3030
3131 A bill to amend 1978 PA 368, entitled
3232
3333 "Public health code,"
3434
3535 by amending sections 2612, 20101, 20145, 20155, 20161, 20164, 20165, 20166, 21551, 21562, and 21563 (MCL 333.2612, 333.20101, 333.20145, 333.20155, 333.20161, 333.20164, 333.20165, 333.20166, 333.21551, 333.21562, and 333.21563), section 2612 as added by 1990 PA 138, sections 20101 and 20166 as amended by 1988 PA 332, sections 20145 and 21551 as amended by 2022 PA 265, sections 20155 and 20164 as amended by 2022 PA 187, section 20161 as amended by 2023 PA 138, section 20165 as amended by 2008 PA 39, and sections 21562 and 21563 as added by 1990 PA 252; and to repeal acts and parts of acts.
3636
3737 the people of the state of michigan enact:
3838
3939 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sec. 2612. (1) The department may establish with Michigan state university State University and other parties persons determined appropriate by the department a nonprofit corporation pursuant to under the nonprofit corporation act, Act No. 162 of the Public Acts of 1982, being sections 1982 PA 162, MCL 450.2101 to 450.3192. of the Michigan Compiled Laws. The purpose of the corporation shall be is to establish and operate a center for rural health. In fulfilling its purpose, the corporation shall do all of the following: (a) Develop a coordinated rural health program that addresses critical questions and problems related to rural health and provides mechanisms for influencing health care policy. (b) Perform and coordinate research regarding rural health issues. (c) Periodically review state and federal laws and judicial decisions pertaining to health care policy and analyze the impact on the delivery of rural health care. (d) Provide technical assistance and act as a resource for the rural health community in this state. (e) Suggest changes in medical education curriculum that would be beneficial to benefit rural health. (f) Assist rural communities with all of the following: (i) Applications for grants. (ii) The recruitment and retention of health professionals. (iii) Needs assessments and planning activities for rural health 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 facilities. (g) Serve as an advocate for rural health concerns. (h) Conduct periodic seminars on rural health issues. (i) Establish and implement a visiting professor program. (j) Conduct consumer oriented consumer-oriented rural health education programs. (k) Designate a certificate of need ombudsman to provide technical assistance and consultation to rural health care providers and rural communities regarding certificate of need proposals and applications under part 222. The ombudsman shall also act as an advocate for rural health concerns in the development of certificate of need review standards under part 222. (2) The incorporators of the corporation shall select a board of directors consisting of a representative from each of the following organizations: (a) The Michigan state medical society State Medical Society or its successor. The representative appointed selected under this subdivision shall must be a physician practicing in a county with a population of not more than 100,000. (b) The Michigan osteopathic physicians' society Osteopathic Association or its successor. The representative appointed selected under this subdivision shall must be a physician practicing in a county with a population of not more than 100,000. (c) The Michigan nurses association Nurses Association or its successor. The representative appointed selected under this subdivision shall must be a nurse practicing in a county with a population of not more than 100,000. (d) The Michigan hospital association Health and Hospital Association or its successor. The representative selected under 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 this subdivision shall must be from a hospital in a county with a population of not more than 100,000. (e) The Michigan primary care association Primary Care Association or its successor. The representative appointed selected under this subdivision shall must be a health professional practicing in a county with a population of not more than 100,000. (f) The Michigan association Association for local public health Local Public Health or its successor. The representative appointed selected under this subdivision must be from a county health department for a county with a population of not more than 100,000 or from a district health department with at least 1 member county with a population of not more than 100,000. (g) The office of the governor. (h) The department. of public health. (i) The department of commerce licensing and regulatory affairs. (j) The Michigan senate. The individual selected under this subdivision shall must be from a district located at least in part in a county with a population of not more than 100,000. (k) The Michigan house of representatives. The individual selected under this subdivision shall must be from a district located at least in part in a county with a population of not more than 100,000. (3) The board of directors of the corporation shall appoint an internal management committee for the center for rural health. The management committee shall must consist of representatives from each of the following: (a) The college College of human medicine Human Medicine of Michigan state university.State University. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (b) The college College of osteopathic medicine Osteopathic Medicine of Michigan state university.State University. (c) The college College of nursing Nursing of Michigan state university.State University. (d) The college College of veterinary medicine Veterinary Medicine of Michigan state university.State University. (e) The cooperative extension service of Michigan state university.State University Extension. (f) The department. of public health. Sec. 20101. (1) The words and phrases defined in sections 20102 to 20109 apply to all parts in this article except part 222 and have the meanings ascribed to them in those sections. (2) In addition, article 1 contains general definitions and principles of construction applicable to all articles in this code. Sec. 20145. (1) Before contracting for and initiating a construction project involving new construction, additions, modernizations, or conversions of a health facility or agency with a capital expenditure of $1,000,000.00 or more, a person shall obtain a construction permit from the department. The department shall not issue the permit under this subsection unless the applicant holds a valid certificate of need if a certificate of need is required for the project under part 222. (2) To protect the public health, safety, and welfare, the department may promulgate rules to require construction permits for projects other than those described in subsection (1) and the submission of plans for other construction projects to expand or change service areas and services provided. (3) If a construction project requires a construction permit under subsection (1) or (2), but does not require a certificate of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 need under part 222, the department shall require the applicant to submit information considered necessary by the department to ensure that the capital expenditure for the project is not a covered capital expenditure as that term is defined in section 22203. (3) (4) If For a construction project that requires a construction permit under subsection (1), but does not require a certificate of need under part 222, the department shall require the applicant to submit information on a 1-page sheet, along with the application for a construction permit, consisting of all of the following: (a) A short description of the reason for the project and the funding source. (b) A contact person for further information, including the person's address and telephone number. (c) The estimated resulting increase or decrease in annual operating costs. (d) The current governing board membership of the applicant. (e) The entity, if any, that owns the applicant. (4) (5) The department shall make the information filed under subsection (4) (3) publicly available by the same methods used to make information about certificate of need applications under former part 222 publicly available. (5) (6) The review and approval of architectural plans and narrative must require that the proposed construction project is designed and constructed in accord with applicable statutory and other regulatory requirements. In performing a construction permit review for a health facility or agency under this section, the department shall, at a minimum, apply the standards contained in the document entitled "Minimum Design Standards for Health Care 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Facilities in Michigan" published by the department and dated July 2007. The standards are incorporated by reference for purposes of this subsection. The department may promulgate rules that are more stringent than the standards if necessary to protect the public health, safety, and welfare. (6) (7) The department shall promulgate rules to further prescribe the scope of construction projects and other alterations subject to review under this section. (7) (8) The department may waive the applicability of this section to a construction project or alteration if the waiver will not affect the public health, safety, and welfare. (8) (9) On request by the person initiating a construction project, the department may review and issue a construction permit to a construction project that is not subject to subsection (1) or (2) if the department determines that the review will promote the public health, safety, and welfare. (9) (10) The department shall assess a fee for each review conducted under this section. The fee is .5% 0.5% of the first $1,000,000.00 of capital expenditure and .85% 0.85% of any amount over $1,000,000.00 of capital expenditure, up to a maximum of $60,000.00. (10) (11) As used in this section, "capital expenditure" means that term as defined in section 22203, except that capital expenditure does not include the cost of equipment that is not fixed equipment.an expenditure for a single project, including cost of construction, engineering, and fixed equipment that under generally accepted accounting principles is not properly chargeable as an expense of operation. Capital expenditure includes a lease or comparable arrangement by or on behalf of a health facility to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 obtain a health facility, licensed part of a health facility, or fixed equipment for a health facility, if the actual purchase of a health facility, licensed part of a health facility, or fixed equipment for a health facility would have been considered a capital expenditure under former part 222. Capital expenditure includes the cost of studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the acquisition, improvement, expansion, addition, conversion, modernization, new construction, or replacement of physical plant and fixed equipment. Sec. 20155. (1) Except as otherwise provided in this section, the department shall make at least 1 visit to each licensed health facility or agency every 3 years for survey and evaluation for the purpose of licensure. A visit made according to a complaint must be unannounced. Except for a county medical care facility, a home for the aged, a nursing home, or a hospice residence, the department shall determine whether the visits that are not made according to a complaint are announced or unannounced. The department shall ensure that each newly hired nursing home surveyor, as part of his or her basic training, is assigned full-time to a licensed nursing home for at least 10 days within a 14-day period to observe actual operations outside of the survey process before the trainee begins oversight responsibilities. (2) The department shall establish a process that ensures both of the following: (a) A newly hired nursing home surveyor does not make independent compliance decisions during his or her training period. (b) A nursing home surveyor is not assigned as a member of a survey team for a nursing home in which he or she received training 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 for 1 standard survey following the training received in that nursing home. (3) The department shall perform a criminal history check on all nursing home surveyors in the manner provided for in section 20173a. (4) A member of a survey team must not be employed by a licensed nursing home or a nursing home management company doing business in this state at the time of conducting a survey under this section. The department shall not assign an individual to be a member of a survey team for purposes of a survey, evaluation, or consultation visit at a nursing home in which he or she was an employee within the preceding 3 years. (5) The department shall invite representatives from all nursing home provider organizations and the state long-term care ombudsman or his or her designee to participate in the planning process for the joint provider and surveyor training sessions. The department shall include at least 1 representative from nursing home provider organizations that do not own or operate a nursing home representing 30 or more nursing homes statewide in internal surveyor group quality assurance training provided for the purpose of general clarification and interpretation of existing or new regulatory requirements and expectations. (6) The department shall make available online the general civil service position description related to the required qualifications for individual surveyors. The department shall use the required qualifications to hire, educate, develop, and evaluate surveyors. (7) The department shall semiannually provide for joint training with nursing home surveyors and providers on at least 1 of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 the 10 most frequently issued federal citations in this state during the past calendar year. The department shall develop a protocol for the review of citation patterns compared to regional outcomes and standards and complaints regarding the nursing home survey process. Except as otherwise provided in this subsection, each member of a department nursing home survey team who is a health professional licensee under article 15 shall earn not less than 50% of his or her required continuing education credits, if any, in geriatric care. If a member of a nursing home survey team is a pharmacist licensed under article 15, he or she shall earn not less than 30% of his or her required continuing education credits in geriatric care. (8) Subject to subsection (11), the department may waive the visit required by subsection (1) if a health facility or agency, requests a waiver and submits the following as applicable and if all of the requirements of subsection (10) are met: (a) Evidence that it is currently fully accredited by a body with expertise in the health facility or agency type and the accrediting organization is accepted by the United States Department of Health and Human Services for purposes of 42 USC 1395bb. (b) A copy of the most recent accreditation report, or executive summary, issued by a body described in subdivision (a), and the health facility's or agency's responses to the accreditation report is submitted to the department at least 30 days from license renewal. Submission of an executive summary does not prevent or prohibit the department from requesting the entire accreditation report if the department considers it necessary. (c) For a nursing home, a finding of substantial compliance or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 an accepted plan of correction, if applicable, on the most recent standard federal certification survey under part 221. (9) Except as otherwise provided in subsection (13), accreditation information provided to the department under subsection (8) is confidential, is not a public record, and is not subject to court subpoena. The department shall use the accreditation information only as provided in this section and properly destroy the documentation after a decision on the waiver request is made. (10) The department shall grant a waiver under subsection (8) if the accreditation report submitted under subsection (8)(b) is less than 3 years old or the most recent standard federal certification survey under part 221 submitted under subsection (8)(c) shows substantial compliance or an accepted plan of correction, if applicable. If the accreditation report is too old, the department may deny the waiver request and conduct the visits required under subsection (8). Denial of a waiver request by the department is not subject to appeal. (11) This section does not prohibit the department from citing a violation of this part during a survey, conducting investigations or inspections according to section 20156, or conducting surveys of health facilities or agencies for the purpose of complaint investigations. This section does not prohibit the bureau of fire services created in section 1b of the fire prevention code, 1941 PA 207, MCL 29.1b, from conducting annual surveys of hospitals, nursing homes, and county medical care facilities. (12) At the request of a health facility or agency other than a health facility or agency defined in section 20106(1)(a), (d), (h), and (i), the department may conduct a consultation engineering 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 survey of that health facility or agency and provide professional advice and consultation regarding facility construction and design. A health facility or agency may request a voluntary consultation survey under this subsection at any time between licensure surveys. The fees for a consultation engineering survey are the same as the fees established for waivers under section 20161(8). 20161(7). (13) If the department determines that substantial noncompliance with licensure standards exists or that deficiencies that represent a threat to public safety or patient care exist based on a review of an accreditation report submitted under subsection (8)(b), the department shall prepare a written summary of the substantial noncompliance or deficiencies and the health facility's or agency's response to the department's determination. The department's written summary and the health facility's or agency's response are public documents. (14) The department or a local health department shall conduct investigations or inspections, other than inspections of financial records, of a county medical care facility, home for the aged, nursing home, or hospice residence without prior notice to the health facility or agency. An employee of a state agency charged with investigating or inspecting the health facility or agency or an employee of a local health department who directly or indirectly gives prior notice regarding an investigation or an inspection, other than an inspection of the financial records, to the health facility or agency or to an employee of the health facility or agency, is guilty of a misdemeanor. Consultation visits that are not for the purpose of annual or follow-up inspection or survey may be announced. (15) The department shall require periodic reports and a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 health facility or agency shall give the department access to books, records, and other documents maintained by a health facility or agency to the extent necessary to carry out the purpose of this article and the rules promulgated under this article. The department shall not divulge or disclose the contents of the patient's clinical records in a manner that identifies an individual except under court order. The department may copy health facility or agency records as required to document findings. Surveyors shall use electronic resident information, whenever available, as a source of survey-related data and shall request the assistance of a health facility or agency to access the system to maximize data export. (16) The department may delegate survey, evaluation, or consultation functions to another state agency or to a local health department qualified to perform those functions. The department shall not delegate survey, evaluation, or consultation functions to a local health department that owns or operates a hospice or hospice residence licensed under this article. The department shall delegate under this subsection by cost reimbursement contract between the department and the state agency or local health department. The department shall not delegate survey, evaluation, or consultation functions to nongovernmental agencies, except as provided in this section. The licensee and the department must both agree to the voluntary inspection described in this subsection. (17) If, upon investigation, the department or a state agency determines that an individual licensed to practice a profession in this state has violated the applicable licensure statute or the rules promulgated under that statute, the department, state agency, or local health department shall forward the evidence it has to the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 appropriate licensing agency. (18) The department shall conduct a quarterly meeting and invite appropriate stakeholders. The department shall invite as appropriate stakeholders under this subsection at least 1 representative from each nursing home provider organization that does not own or operate a nursing home representing 30 or more nursing homes statewide, the state long-term care ombudsman or his or her designee, and any other clinical experts. Individuals who participate in these quarterly meetings, jointly with the department, may designate advisory workgroups to develop recommendations on opportunities for enhanced promotion of nursing home performance, including, but not limited to, programs that encourage and reward nursing homes that strive for excellence. (19) A nursing home may use peer-reviewed, evidence-based, nationally recognized clinical process guidelines or peer-reviewed, evidence-based, best-practice resources to develop and implement resident care policies and compliance protocols with measurable outcomes to promote performance excellence. (20) The department shall consider recommendations from an advisory workgroup created under subsection (18). The department may include training on new and revised peer-reviewed, evidence-based, nationally recognized clinical process guidelines or peer-reviewed, evidence-based, best-practice resources, which contain measurable outcomes, in the joint provider and surveyor training sessions to assist provider efforts toward improved regulatory compliance and performance excellence and to foster a common understanding of accepted peer-reviewed, evidence-based, best-practice resources between providers and the survey agency. The department shall post on its website all peer-reviewed, evidence- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 based, nationally recognized clinical process guidelines and peer-reviewed, evidence-based, best-practice resources used in a training session under this subsection for provider, surveyor, and public reference. (21) A nursing home shall post the nursing home's survey report in a conspicuous place within the nursing home for public review. (22) Nothing in this section limits the requirements of related state and federal law. Sec. 20161. (1) The department shall assess fees and other assessments for health facility and agency licenses and certificates of need on an annual basis as provided in this article. Until October 1, 2027, except as otherwise provided in this article, fees and assessments must be paid as provided in the following schedule: (a) Freestanding surgical outpatient facilities.............. $500.00 per facility license. (b) Hospitals ............... $500.00 per facility license and $10.00 per licensed bed. (c) Nursing homes, county medical care facilities, and hospital long-term care units ..... $500.00 per facility license and $3.00 per licensed bed over 100 licensed beds. (d) Homes for the aged ...... $500.00 per facility license and $6.27 per licensed bed. (e) Hospice agencies ........ $500.00 per agency license. (f) Hospice residences ...... $500.00 per facility license and $5.00 per licensed bed. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (g) Subject to subsection (11), (10), quality assurance assessment for nursing homes and hospital long-term care units .............. an amount resulting in not more than 6% of total industry revenues. (h) Subject to subsection (12), (11), quality assurance assessment for hospitals ..................... at a fixed or variable rate that generates funds not more than the maximum allowable under the federal matching requirements, after consideration for the amounts in subsection (12)(a) (11)(a) and (i). (i) Initial licensure application fee for subdivisions (a), (b), (c), (d), (e), and (f) .. $2,000.00 per initial license. (2) If a hospital requests the department to conduct a certification survey for purposes of title XVIII or title XIX, the hospital shall pay a license fee surcharge of $23.00 per bed. As used in this subsection: (a) "Title XVIII" means title XVIII of the social security act, 42 USC 1395 to 1395lll. (b) "Title XIX" means title XIX of the social security act, 42 USC 1396 to 1396w-7. (3) All of the following apply to the assessment under this 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 section for certificates of need: (a) The base fee for a certificate of need is $3,000.00 for each application. For a project requiring a projected capital expenditure of more than $500,000.00 but less than $4,000,000.00, an additional fee of $5,000.00 is added to the base fee. For a project requiring a projected capital expenditure of $4,000,000.00 or more but less than $10,000,000.00, an additional fee of $8,000.00 is added to the base fee. For a project requiring a projected capital expenditure of $10,000,000.00 or more, an additional fee of $12,000.00 is added to the base fee. (b) In addition to the fees under subdivision (a), the applicant shall pay $3,000.00 for any designated complex project including a project scheduled for comparative review or for a consolidated licensed health facility application for acquisition or replacement. (c) If required by the department, the applicant shall pay $1,000.00 for a certificate of need application that receives expedited processing at the request of the applicant. (d) The department shall charge a fee of $500.00 to review any letter of intent requesting or resulting in a waiver from certificate of need review and any amendment request to an approved certificate of need. (e) A health facility or agency that offers certificate of need covered clinical services shall pay $100.00 for each certificate of need approved covered clinical service as part of the certificate of need annual survey at the time of submission of the survey data. (f) Except as otherwise provided in this section, the department shall use the fees collected under this subsection only 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 to fund the certificate of need program. Funds remaining in the certificate of need program at the end of the fiscal year do not lapse to the general fund but remain available to fund the certificate of need program in subsequent years. (3) (4) A license issued under this part is effective for no longer than 1 year after the date of issuance. (4) (5) Fees described in this section are payable to the department at the time an application for a license, permit, or certificate is submitted. If an application for a license, permit, or certificate is denied or if a license, permit, or certificate is revoked before its expiration date, the department shall not refund fees paid to the department. (5) (6) The fee for a provisional license or temporary permit is the same as for a license. A license may be issued at the expiration date of a temporary permit without an additional fee for the balance of the period for which the fee was paid if the requirements for licensure are met. (6) (7) The cost of licensure activities must be supported by license fees. (7) (8) The application fee for a waiver under section 21564 is $200.00 plus $40.00 per hour for the professional services and travel expenses directly related to processing the application. The travel expenses must be calculated in accordance with the state standardized travel regulations of the department of technology, management, and budget in effect at the time of the travel. (8) (9) An applicant for licensure or renewal of licensure under part 209 shall pay the applicable fees set forth in part 209. (9) (10) Except as otherwise provided in this section, the fees and assessments collected under this section must be deposited 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 in the state treasury, to the credit of the general fund. The department may use the unreserved fund balance in fees and assessments for the criminal history check program required under this article. (10) (11) The quality assurance assessment collected under subsection (1)(g) and all federal matching funds attributed to that assessment must be used only for the following purposes and under the following specific circumstances: (a) The quality assurance assessment and all federal matching funds attributed to that assessment must be used to finance Medicaid nursing home reimbursement payments. Only licensed nursing homes and hospital long-term care units that are assessed the quality assurance assessment and participate in the Medicaid program are eligible for increased per diem Medicaid reimbursement rates under this subdivision. A nursing home or long-term care unit that is assessed the quality assurance assessment and that does not pay the assessment required under subsection (1)(g) in accordance with subdivision (c)(i) or in accordance with a written payment agreement with this state shall not receive the increased per diem Medicaid reimbursement rates under this subdivision until all of its outstanding quality assurance assessments and any penalties assessed under subdivision (f) have been paid in full. This subdivision does not authorize or require the department to overspend tax revenue in violation of the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594. (b) Except as otherwise provided under subdivision (c), beginning October 1, 2005, the quality assurance assessment is based on the total number of patient days of care each nursing home and hospital long-term care unit provided to non-Medicare patients 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 within the immediately preceding year, must be assessed at a uniform rate on October 1, 2005 and subsequently on October 1 of each following year, and is payable on a quarterly basis, with the first payment due 90 days after the date the assessment is assessed. (c) Within 30 days after September 30, 2005, the department shall submit an application to the Centers for Medicare and Medicaid Services to request a waiver according to 42 CFR 433.68(e) to implement this subdivision as follows: (i) If the waiver is approved, the quality assurance assessment rate for a nursing home or hospital long-term care unit with less than 40 licensed beds or with the maximum number, or more than the maximum number, of licensed beds necessary to secure federal approval of the application is $2.00 per non-Medicare patient day of care provided within the immediately preceding year or a rate as otherwise altered on the application for the waiver to obtain federal approval. If the waiver is approved, for all other nursing homes and long-term care units the quality assurance assessment rate is to be calculated by dividing the total statewide maximum allowable assessment permitted under subsection (1)(g) less the total amount to be paid by the nursing homes and long-term care units with less than 40 licensed beds or with the maximum number, or more than the maximum number, of licensed beds necessary to secure federal approval of the application by the total number of non-Medicare patient days of care provided within the immediately preceding year by those nursing homes and long-term care units with more than 39 licensed beds, but less than the maximum number of licensed beds necessary to secure federal approval. The quality assurance assessment, as provided under this subparagraph, must be 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 assessed in the first quarter after federal approval of the waiver and must be subsequently assessed on October 1 of each following year, and is payable on a quarterly basis, with the first payment due 90 days after the date the assessment is assessed. (ii) If the waiver is approved, continuing care retirement centers are exempt from the quality assurance assessment if the continuing care retirement center requires each center resident to provide an initial life interest payment of $150,000.00, on average, per resident to ensure payment for that resident's residency and services and the continuing care retirement center utilizes all of the initial life interest payment before the resident becomes eligible for medical assistance under the state's Medicaid plan. As used in this subparagraph, "continuing care retirement center" means a nursing care facility that provides independent living services, assisted living services, and nursing care and medical treatment services, in a campus-like setting that has shared facilities or common areas, or both. (d) Beginning May 10, 2002, the department shall increase the per diem nursing home Medicaid reimbursement rates for the balance of that year. For each subsequent year in which the quality assurance assessment is assessed and collected, the department shall maintain the Medicaid nursing home reimbursement payment increase financed by the quality assurance assessment. (e) The department shall implement this section in a manner that complies with federal requirements necessary to ensure that the quality assurance assessment qualifies for federal matching funds. (f) If a nursing home or a hospital long-term care unit fails to pay the assessment required by subsection (1)(g), the department 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 may assess the nursing home or hospital long-term care unit a penalty of 5% of the assessment for each month that the assessment and penalty are not paid up to a maximum of 50% of the assessment. The department may also refer for collection to the department of treasury past due amounts consistent with section 13 of 1941 PA 122, MCL 205.13. (g) The Medicaid nursing home quality assurance assessment fund is established in the state treasury. The department shall deposit the revenue raised through the quality assurance assessment with the state treasurer for deposit in the Medicaid nursing home quality assurance assessment fund. (h) The department shall not implement this subsection in a manner that conflicts with 42 USC 1396b(w). (i) The quality assurance assessment collected under subsection (1)(g) must be prorated on a quarterly basis for any licensed beds added to or subtracted from a nursing home or hospital long-term care unit since the immediately preceding July 1. Any adjustments in payments are due on the next quarterly installment due date. (j) In each fiscal year governed by this subsection, Medicaid reimbursement rates must not be reduced below the Medicaid reimbursement rates in effect on April 1, 2002 as a direct result of the quality assurance assessment collected under subsection (1)(g). (k) The state retention amount of the quality assurance assessment collected under subsection (1)(g) must be equal to 13.2% of the federal funds generated by the nursing homes and hospital long-term care units quality assurance assessment, including the state retention amount. The state retention amount must be 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 appropriated each fiscal year to the department to support Medicaid expenditures for long-term care services. These funds must offset an identical amount of general fund/general purpose revenue originally appropriated for that purpose. (l) Beginning October 1, 2027, the department shall not assess or collect the quality assurance assessment or apply for federal matching funds. The quality assurance assessment collected under subsection (1)(g) must not be assessed or collected after September 30, 2011 if the quality assurance assessment is not eligible for federal matching funds. Any portion of the quality assurance assessment collected from a nursing home or hospital long-term care unit that is not eligible for federal matching funds must be returned to the nursing home or hospital long-term care unit. (11) (12) The quality assurance dedication is an earmarked assessment collected under subsection (1)(h). That assessment and all federal matching funds attributed to that assessment must be used only for the following purpose and under the following specific circumstances: (a) To maintain the increased Medicaid reimbursement rate increases as provided for in subdivision (c). (b) The quality assurance assessment must be assessed on all net patient revenue, before deduction of expenses, less Medicare net revenue, as reported in the most recently available Medicare cost report and is payable on a quarterly basis, with the first payment due 90 days after the date the assessment is assessed. As used in this subdivision, "Medicare net revenue" includes Medicare payments and amounts collected for coinsurance and deductibles. (c) Beginning October 1, 2002, the department shall increase the hospital Medicaid reimbursement rates for the balance of that 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 year. For each subsequent year in which the quality assurance assessment is assessed and collected, the department shall maintain the hospital Medicaid reimbursement rate increase financed by the quality assurance assessments. (d) The department shall implement this section in a manner that complies with federal requirements necessary to ensure that the quality assurance assessment qualifies for federal matching funds. (e) If a hospital fails to pay the assessment required by subsection (1)(h), the department may assess the hospital a penalty of 5% of the assessment for each month that the assessment and penalty are not paid up to a maximum of 50% of the assessment. The department may also refer for collection to the department of treasury past due amounts consistent with section 13 of 1941 PA 122, MCL 205.13. (f) The hospital quality assurance assessment fund is established in the state treasury. The department shall deposit the revenue raised through the quality assurance assessment with the state treasurer for deposit in the hospital quality assurance assessment fund. (g) In each fiscal year governed by this subsection, the quality assurance assessment must only be collected and expended if Medicaid hospital inpatient DRG and outpatient reimbursement rates and graduate medical education payments are not below the level of rates and payments in effect on April 1, 2002 as a direct result of the quality assurance assessment collected under subsection (1)(h), except as provided in subdivision (h). (h) The quality assurance assessment collected under subsection (1)(h) must not be assessed or collected after September 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30, 2011 if the quality assurance assessment is not eligible for federal matching funds. Any portion of the quality assurance assessment collected from a hospital that is not eligible for federal matching funds must be returned to the hospital. (i) The state retention amount of the quality assurance assessment collected under subsection (1)(h) must be equal to 13.2% of the federal funds generated by the hospital quality assurance assessment, including the state retention amount. The 13.2% state retention amount described in this subdivision does not apply to the Healthy Michigan plan. Beginning in the fiscal year ending September 30, 2018, and for each fiscal year thereafter, there is a retention amount of at least $118,420,600.00 for each fiscal year for the Healthy Michigan plan. By May 31 of each year, the department, the state budget office, and the Michigan Health and Hospital Association shall identify an appropriate retention amount for the Healthy Michigan plan. The state retention percentage must be applied proportionately to each hospital quality assurance assessment program to determine the retention amount for each program. The state retention amount must be appropriated each fiscal year to the department to support Medicaid expenditures for hospital services and therapy. These funds must offset an identical amount of general fund/general purpose revenue originally appropriated for that purpose. (12) (13) The department may establish a quality assurance assessment to increase ambulance reimbursement as follows: (a) The quality assurance assessment authorized under this subsection must be used to provide reimbursement to Medicaid ambulance providers. The department may promulgate rules to provide the structure of the quality assurance assessment authorized under 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 this subsection and the level of the assessment. (b) The department shall implement this subsection in a manner that complies with federal requirements necessary to ensure that the quality assurance assessment qualifies for federal matching funds. (c) The total annual collections by the department under this subsection must not exceed $20,000,000.00. (d) The quality assurance assessment authorized under this subsection must not be collected after October 1, 2027. The quality assurance assessment authorized under this subsection must no longer be collected or assessed if the quality assurance assessment authorized under this subsection is not eligible for federal matching funds. (e) By November 1 of each year, the department shall send a notification to each ambulance operation that will be assessed the quality assurance assessment authorized under this subsection during the year in which the notification is sent. (13) (14) The quality assurance assessment provided for under this section is a tax that is levied on a health facility or agency. (14) (15) As used in this section: (a) "Healthy Michigan plan" means the medical assistance program described in section 105d of the social welfare act, 1939 PA 280, MCL 400.105d, that has a federal matching fund rate of not less than 90%. (b) "Medicaid" means that term as defined in section 22207. the program for medical assistance established under title XIX of the social security act, 42 USC 1396 to 1396w-7, and administered by the department of health and human services under the social 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 welfare act, 1939 PA 280, MCL 400.1 to 400.119b. Sec. 20164. (1) Except as provided in part 209, a license, certification, provisional license, or limited license is valid for not more than 1 year after the date of issuance. (2) A license , or certification , or certificate of need is not transferable and must state the persons, buildings, and properties to which it applies. Applications for licensure or certification because of transfer of ownership or essential ownership interest must not be acted upon until satisfactory evidence is provided of compliance with part 222. (3) If ownership is not voluntarily transferred, the department must be notified immediately and the new owner shall apply for a license and certification not later than 30 days after the transfer. Sec. 20165. (1) Except as otherwise provided in this section, after notice of intent to an applicant or licensee to deny, limit, suspend, or revoke the applicant's or licensee's license or certification and an opportunity for a hearing, the department may deny, limit, suspend, or revoke the license or certification or impose an administrative fine on a licensee if 1 or more of the following exist: (a) Fraud or deceit in obtaining or attempting to obtain a license or certification or in the operation of the licensed health facility or agency. (b) A violation of this article or a rule promulgated under this article. (c) False or misleading advertising. (d) Negligence or failure to exercise due care, including negligent supervision of employees and subordinates. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (e) Permitting a license or certificate to be used by an unauthorized health facility or agency. (f) Evidence of abuse regarding a patient's health, welfare, or safety or the denial of a patient's rights. (g) Failure to comply with section 10115. (h) Failure to comply with former part 222 or a term, condition, or stipulation of a certificate of need issued under former part 222, or both. This subdivision only applies to a failure to comply that occurred before the effective date of the amendatory act that repealed part 222. (i) A violation of section 20197(1). (2) The department may deny an application for a license or certification based on a finding of a condition or practice that would constitute a violation of this article if the applicant were a licensee. (3) Denial, suspension, or revocation of an individual emergency medical services personnel license under part 209 is governed by section 20958. (4) If the department determines under subsection (1) that a health facility or agency has violated section 20197(1), the department shall impose an administrative fine of $5,000,000.00 on the health facility or agency. Sec. 20166. (1) Notice of intent to deny, limit, suspend, or revoke a license or certification shall must be given by certified mail or personal service, shall set forth the particular reasons for the proposed action, and shall fix a date, not less that than 30 days after the date of service, on which the applicant or licensee shall be is given the opportunity for a hearing before the director or the director's authorized representative. The hearing 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 shall must be conducted in accordance with the administrative procedures act of 1969 and rules promulgated by the department. A full and complete record shall must be kept of the proceeding and shall must be transcribed when requested by an interested party, who shall pay the cost of preparing the transcript. (2) On the basis of a hearing or on the default of the applicant or licensee, the department may issue, deny, limit, suspend, or revoke a license or certification. A copy of the determination shall must be sent by certified mail or served personally upon the applicant or licensee. The determination becomes final 30 days after it is mailed or served, unless the applicant or licensee within the 30 days appeals the decision to the circuit court in the county of jurisdiction or to the Ingham county County circuit court. (3) The department may establish procedures, hold hearings, administer oaths, issue subpoenas, or order testimony to be taken at a hearing or by deposition in a proceeding pending at any stage of the proceeding. A person may be compelled to appear and testify and to produce books, papers, or documents in a proceeding. (4) In case of disobedience of a subpoena, a party to a hearing may invoke the aid of the circuit court of the jurisdiction in which the hearing is held to require the attendance and testimony of witnesses. The circuit court may issue an order requiring an individual to appear and give testimony. Failure to obey the order of the circuit court may be punished by the court as a contempt. (5) The department shall not deny, limit, suspend, or revoke a license on the basis of an applicant's or licensee's failure to show a need for a health facility or agency unless the health 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 facility or agency has did not obtained obtain a certificate of need as required by former part 222. Sec. 21551. (1) A hospital licensed under this article and located in a nonurbanized area may apply to the department to temporarily delicense the following: (a) Not more than 50% of its licensed beds for not more than 5 years. (b) If the hospital is a rural emergency hospital, 100% of its licensed beds for not more than 5 years. (2) A hospital that is granted a temporary delicensure of beds under subsection (1) may apply to the department for an extension of temporary delicensure for those beds for up to an additional 5 years to the extent that the hospital actually met the requirements of subsection (6) during the initial period of delicensure granted under subsection (1). The department shall grant an extension under this subsection unless the department determines under part 222 that there is a demonstrated need for the delicensed beds in the hospital group in which the hospital is located. If the department does not grant an extension under this subsection, the hospital shall request relicensure of the beds under subsection (7) or allow the beds to become permanently delicensed under subsection (8). (3) Except as otherwise provided in this section, for a period of 90 days after January 1, 1991, if a hospital is located in a distressed area and has an annual indigent volume consisting of not less than 25% indigent patients, the hospital may apply to the department to temporarily delicense not more than 50% of its licensed beds for a period of not more than 2 years. On the receipt of a complete application under this subsection, the department shall temporarily delicense the beds indicated in the application. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 The department shall not grant an extension of temporary delicensure under this subsection. (4) An application under subsection (1) or (3) must be on a form provided by the department. The form must contain all of the following information: (a) The number and location of the specific beds to be delicensed. (b) The period of time during which the beds will be delicensed. (c) The alternative use proposed for the space occupied by the beds to be delicensed. (5) A hospital that files an application under subsection (1) or (3) may file an amended application with the department on a form provided by the department. The hospital shall state on the form the purpose of the amendment. If the hospital meets the requirements of this section, the department shall so amend the hospital's original application. (6) An alternative use of space made available by the delicensure of beds under this section does not result in a violation of this article or the rules promulgated under this article. Along with the application, an applicant for delicensure under subsection (1) or (3) shall submit to the department plans that indicate to the satisfaction of the department that the space occupied by the beds proposed for temporary delicensure will be used for 1 or more of the following: (a) An alternative use that over the proposed period of temporary delicensure would defray the depreciation and interest costs that otherwise would be allocated to the space along with the operating expenses related to the alternative use. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (b) To correct a licensing deficiency previously identified by the department. (c) Nonhospital purposes, including, but not limited to, community service projects, if the depreciation and interest costs for all capital expenditures that would otherwise be allocated to the space, as well as any operating costs related to the proposed alternative use, would not be considered as hospital costs for purposes of reimbursement. (7) The department shall relicense beds that are temporarily delicensed under this section if all of the following requirements are met: (a) The hospital files with the department a written request for relicensure not less than 90 days before the earlier of the following: (i) The expiration of the period for which delicensure was granted. (ii) The date upon which the hospital is requesting relicensure. (iii) The last hospital license renewal date in the delicensure period. (b) The space to be occupied by the relicensed beds is in compliance with this article and the rules promulgated under this article, including all licensure standards in effect at the time of relicensure, or the hospital has a plan of corrections that has been approved by the department. (8) If a hospital does not meet all of the requirements of subsection (7) or if a hospital decides to allow beds to become permanently delicensed as described in subsection (2), then all of the temporarily delicensed beds must be automatically and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 permanently delicensed effective on the last day of the period for which the department granted temporary delicensure. (9) The department of health and human services shall continue to count beds temporarily delicensed under this section in the department of health and human services' bed inventory for purposes of determining hospital bed need under part 222 in the hospital group in which the beds are located. The department of health and human services shall indicate in the bed inventory which beds are licensed and which beds are temporarily delicensed under this section. The department of health and human services shall not include a hospital's temporarily delicensed beds in the hospital's licensed bed count. (10) A hospital that is granted temporary delicensure of beds under this section shall not transfer the beds to another site or hospital without first obtaining a certificate of need. (10) (11) As used in this section: (a) "Distressed area" means a city that meets all of the following criteria: (i) Had a negative population change from 2010 to the date of the 2020 federal decennial census. (ii) From 1972 to 1989, had an increase in its state equalized valuation that is less than the statewide average. (iii) Has a poverty level that is greater than the statewide average, according to the 1980 federal decennial census. (iv) Was eligible for an urban development action grant from the United States Department of Housing and Urban Development in 1984 and was listed in 49 FR No. 28 (February 9, 1984) or 49 FR No. 30 (February 13, 1984). (v) Had an unemployment rate that was higher than the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 statewide average for 3 of the 5 years from 1981 to 1985. (b) "Indigent volume" means the ratio of a hospital's indigent charges to its total charges expressed as a percentage as determined by the department of health and human services after November 12, 1990, under chapter 8 of the department of health and human services guidelines titled "Medical Assistance Program Manual". (c) "Nonurbanized area" means an area that is not an urbanized area. (d) "Urbanized area" means that term as defined by the Office of Federal Statistical Policy and Standards of the United States Department of Commerce in the appendix entitled "General Procedures and Definitions", 45 FR p. 962 (January 3, 1980), which document is incorporated by reference. Sec. 21562. (1) A hospital designated as a rural community hospital under section 21561 shall be a limited service hospital directed toward the delivery of not more than basic acute care services in order to assure ensure appropriate access in the rural area. (2) The rules promulgated to implement this part shall must require that a hospital designated as a rural community hospital under section 21561 shall provide no more than the following services: (a) Emergency care. (b) Stabilization care for transfer to another facility. (c) Inpatient care. (d) Radiology and laboratory services. (e) Ambulatory care. (f) Obstetrical services. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 (g) Outpatient services. (h) Other services determined as appropriate by the ad hoc advisory committee created in subsection (5).department. (3) A rural community hospital shall enter into an agreement with the department of social health and human services to participate in the medicaid Medicaid program. As used in this subsection, "medicaid" "Medicaid" means that term as defined in section 22207.the program for medical assistance established under title XIX of the social security act, 42 USC 1396 to 1396w-7, and administered by the department of health and human services under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b. (4) A rural community hospital shall meet the conditions for participation in the federal medicare Medicare program under title XVIII of the social security act, 42 USC 1395 to 1395lll. (5) Not later than 3 months after the effective date of this section, the director shall appoint an ad hoc advisory committee to develop recommendations for rules to designate the maximum number of beds and the services to be provided by a rural community hospital. In developing recommendations under this subsection, the ad hoc advisory committee shall review the provisions of the code pertaining to hospital licensure in order to determine those provisions that should apply to rural community hospitals. The director shall direct the committee to report its recommendations to the department within 12 months after the committee is appointed. The ad hoc advisory committee shall be appointed as follows: (a) Twenty-five percent of the members shall be representatives from hospitals with fewer than 100 licensed beds. (b) Twenty-five percent of the members shall be 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 representatives from health care provider organizations other than hospitals. (c) Twenty-five percent of the members shall be representatives from organizations whose membership includes consumers of rural health care services or members of local governmental units located in rural areas. (d) Twenty-five percent of the members shall be representatives from purchasers or payers of rural health care services. (5) (6) A hospital designated as a rural community hospital under section 21561 shall develop and implement a transfer agreement between the rural community hospital and 1 or more appropriate referral hospitals. Sec. 21563. (1) The department , in consultation with the ad hoc advisory committee appointed under section 21562, shall promulgate rules for designation of a rural community hospital, maximum number of beds, and the services provided by a rural community hospital. The director shall submit proposed rules, based on the recommendations of the committee, for public hearing not later than 6 months after receiving the report under section 21562(5). (2) The designation as a rural community hospital shall must be shown on a hospital's license and shall must be for the same term as the hospital license. Except as otherwise expressly provided in this part or in rules promulgated under this section, a rural community hospital shall must be licensed and regulated in the same manner as a hospital otherwise licensed under this article. The provisions of part 222 applicable to hospitals also apply to a rural community hospital and to a hospital designated by 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 the department under federal law as an essential access community hospital or a rural primary care hospital. This part and the rules promulgated under this part do not preclude the establishment of differential reimbursement for rural community hospitals, essential access community hospitals, and rural primary care hospitals. Enacting section 1. The following acts and parts of acts are repealed: (a) Section 20143 of the public health code, 1978 PA 368, MCL 333.20143. (b) Section 21420 of the public health code, 1978 PA 368, MCL 333.21420. (c) Part 222 of the public health code, 1978 PA 368, MCL 333.22201 to 333.22260. (d) Section 8t of 1945 PA 47, MCL 331.8t. (e) Section 47 of the hospital finance authority act, 1969 PA 38, MCL 331.77.
4040
4141 1
4242
4343 2
4444
4545 3
4646
4747 4
4848
4949 5
5050
5151 6
5252
5353 7
5454
5555 8
5656
5757 9
5858
5959 10
6060
6161 11
6262
6363 12
6464
6565 13
6666
6767 14
6868
6969 15
7070
7171 16
7272
7373 17
7474
7575 18
7676
7777 19
7878
7979 20
8080
8181 21
8282
8383 22
8484
8585 23
8686
8787 24
8888
8989 25
9090
9191 Sec. 2612. (1) The department may establish with Michigan state university State University and other parties persons determined appropriate by the department a nonprofit corporation pursuant to under the nonprofit corporation act, Act No. 162 of the Public Acts of 1982, being sections 1982 PA 162, MCL 450.2101 to 450.3192. of the Michigan Compiled Laws. The purpose of the corporation shall be is to establish and operate a center for rural health. In fulfilling its purpose, the corporation shall do all of the following:
9292
9393 (a) Develop a coordinated rural health program that addresses critical questions and problems related to rural health and provides mechanisms for influencing health care policy.
9494
9595 (b) Perform and coordinate research regarding rural health issues.
9696
9797 (c) Periodically review state and federal laws and judicial decisions pertaining to health care policy and analyze the impact on the delivery of rural health care.
9898
9999 (d) Provide technical assistance and act as a resource for the rural health community in this state.
100100
101101 (e) Suggest changes in medical education curriculum that would be beneficial to benefit rural health.
102102
103103 (f) Assist rural communities with all of the following:
104104
105105 (i) Applications for grants.
106106
107107 (ii) The recruitment and retention of health professionals.
108108
109109 (iii) Needs assessments and planning activities for rural health
110110
111111 1
112112
113113 2
114114
115115 3
116116
117117 4
118118
119119 5
120120
121121 6
122122
123123 7
124124
125125 8
126126
127127 9
128128
129129 10
130130
131131 11
132132
133133 12
134134
135135 13
136136
137137 14
138138
139139 15
140140
141141 16
142142
143143 17
144144
145145 18
146146
147147 19
148148
149149 20
150150
151151 21
152152
153153 22
154154
155155 23
156156
157157 24
158158
159159 25
160160
161161 26
162162
163163 27
164164
165165 28
166166
167167 29
168168
169169 facilities.
170170
171171 (g) Serve as an advocate for rural health concerns.
172172
173173 (h) Conduct periodic seminars on rural health issues.
174174
175175 (i) Establish and implement a visiting professor program.
176176
177177 (j) Conduct consumer oriented consumer-oriented rural health education programs.
178178
179179 (k) Designate a certificate of need ombudsman to provide technical assistance and consultation to rural health care providers and rural communities regarding certificate of need proposals and applications under part 222. The ombudsman shall also act as an advocate for rural health concerns in the development of certificate of need review standards under part 222.
180180
181181 (2) The incorporators of the corporation shall select a board of directors consisting of a representative from each of the following organizations:
182182
183183 (a) The Michigan state medical society State Medical Society or its successor. The representative appointed selected under this subdivision shall must be a physician practicing in a county with a population of not more than 100,000.
184184
185185 (b) The Michigan osteopathic physicians' society Osteopathic Association or its successor. The representative appointed selected under this subdivision shall must be a physician practicing in a county with a population of not more than 100,000.
186186
187187 (c) The Michigan nurses association Nurses Association or its successor. The representative appointed selected under this subdivision shall must be a nurse practicing in a county with a population of not more than 100,000.
188188
189189 (d) The Michigan hospital association Health and Hospital Association or its successor. The representative selected under
190190
191191 1
192192
193193 2
194194
195195 3
196196
197197 4
198198
199199 5
200200
201201 6
202202
203203 7
204204
205205 8
206206
207207 9
208208
209209 10
210210
211211 11
212212
213213 12
214214
215215 13
216216
217217 14
218218
219219 15
220220
221221 16
222222
223223 17
224224
225225 18
226226
227227 19
228228
229229 20
230230
231231 21
232232
233233 22
234234
235235 23
236236
237237 24
238238
239239 25
240240
241241 26
242242
243243 27
244244
245245 28
246246
247247 29
248248
249249 this subdivision shall must be from a hospital in a county with a population of not more than 100,000.
250250
251251 (e) The Michigan primary care association Primary Care Association or its successor. The representative appointed selected under this subdivision shall must be a health professional practicing in a county with a population of not more than 100,000.
252252
253253 (f) The Michigan association Association for local public health Local Public Health or its successor. The representative appointed selected under this subdivision must be from a county health department for a county with a population of not more than 100,000 or from a district health department with at least 1 member county with a population of not more than 100,000.
254254
255255 (g) The office of the governor.
256256
257257 (h) The department. of public health.
258258
259259 (i) The department of commerce licensing and regulatory affairs.
260260
261261 (j) The Michigan senate. The individual selected under this subdivision shall must be from a district located at least in part in a county with a population of not more than 100,000.
262262
263263 (k) The Michigan house of representatives. The individual selected under this subdivision shall must be from a district located at least in part in a county with a population of not more than 100,000.
264264
265265 (3) The board of directors of the corporation shall appoint an internal management committee for the center for rural health. The management committee shall must consist of representatives from each of the following:
266266
267267 (a) The college College of human medicine Human Medicine of Michigan state university.State University.
268268
269269 1
270270
271271 2
272272
273273 3
274274
275275 4
276276
277277 5
278278
279279 6
280280
281281 7
282282
283283 8
284284
285285 9
286286
287287 10
288288
289289 11
290290
291291 12
292292
293293 13
294294
295295 14
296296
297297 15
298298
299299 16
300300
301301 17
302302
303303 18
304304
305305 19
306306
307307 20
308308
309309 21
310310
311311 22
312312
313313 23
314314
315315 24
316316
317317 25
318318
319319 26
320320
321321 27
322322
323323 28
324324
325325 29
326326
327327 (b) The college College of osteopathic medicine Osteopathic Medicine of Michigan state university.State University.
328328
329329 (c) The college College of nursing Nursing of Michigan state university.State University.
330330
331331 (d) The college College of veterinary medicine Veterinary Medicine of Michigan state university.State University.
332332
333333 (e) The cooperative extension service of Michigan state university.State University Extension.
334334
335335 (f) The department. of public health.
336336
337337 Sec. 20101. (1) The words and phrases defined in sections 20102 to 20109 apply to all parts in this article except part 222 and have the meanings ascribed to them in those sections.
338338
339339 (2) In addition, article 1 contains general definitions and principles of construction applicable to all articles in this code.
340340
341341 Sec. 20145. (1) Before contracting for and initiating a construction project involving new construction, additions, modernizations, or conversions of a health facility or agency with a capital expenditure of $1,000,000.00 or more, a person shall obtain a construction permit from the department. The department shall not issue the permit under this subsection unless the applicant holds a valid certificate of need if a certificate of need is required for the project under part 222.
342342
343343 (2) To protect the public health, safety, and welfare, the department may promulgate rules to require construction permits for projects other than those described in subsection (1) and the submission of plans for other construction projects to expand or change service areas and services provided.
344344
345345 (3) If a construction project requires a construction permit under subsection (1) or (2), but does not require a certificate of
346346
347347 1
348348
349349 2
350350
351351 3
352352
353353 4
354354
355355 5
356356
357357 6
358358
359359 7
360360
361361 8
362362
363363 9
364364
365365 10
366366
367367 11
368368
369369 12
370370
371371 13
372372
373373 14
374374
375375 15
376376
377377 16
378378
379379 17
380380
381381 18
382382
383383 19
384384
385385 20
386386
387387 21
388388
389389 22
390390
391391 23
392392
393393 24
394394
395395 25
396396
397397 26
398398
399399 27
400400
401401 28
402402
403403 29
404404
405405 need under part 222, the department shall require the applicant to submit information considered necessary by the department to ensure that the capital expenditure for the project is not a covered capital expenditure as that term is defined in section 22203.
406406
407407 (3) (4) If For a construction project that requires a construction permit under subsection (1), but does not require a certificate of need under part 222, the department shall require the applicant to submit information on a 1-page sheet, along with the application for a construction permit, consisting of all of the following:
408408
409409 (a) A short description of the reason for the project and the funding source.
410410
411411 (b) A contact person for further information, including the person's address and telephone number.
412412
413413 (c) The estimated resulting increase or decrease in annual operating costs.
414414
415415 (d) The current governing board membership of the applicant.
416416
417417 (e) The entity, if any, that owns the applicant.
418418
419419 (4) (5) The department shall make the information filed under subsection (4) (3) publicly available by the same methods used to make information about certificate of need applications under former part 222 publicly available.
420420
421421 (5) (6) The review and approval of architectural plans and narrative must require that the proposed construction project is designed and constructed in accord with applicable statutory and other regulatory requirements. In performing a construction permit review for a health facility or agency under this section, the department shall, at a minimum, apply the standards contained in the document entitled "Minimum Design Standards for Health Care
422422
423423 1
424424
425425 2
426426
427427 3
428428
429429 4
430430
431431 5
432432
433433 6
434434
435435 7
436436
437437 8
438438
439439 9
440440
441441 10
442442
443443 11
444444
445445 12
446446
447447 13
448448
449449 14
450450
451451 15
452452
453453 16
454454
455455 17
456456
457457 18
458458
459459 19
460460
461461 20
462462
463463 21
464464
465465 22
466466
467467 23
468468
469469 24
470470
471471 25
472472
473473 26
474474
475475 27
476476
477477 28
478478
479479 29
480480
481481 Facilities in Michigan" published by the department and dated July 2007. The standards are incorporated by reference for purposes of this subsection. The department may promulgate rules that are more stringent than the standards if necessary to protect the public health, safety, and welfare.
482482
483483 (6) (7) The department shall promulgate rules to further prescribe the scope of construction projects and other alterations subject to review under this section.
484484
485485 (7) (8) The department may waive the applicability of this section to a construction project or alteration if the waiver will not affect the public health, safety, and welfare.
486486
487487 (8) (9) On request by the person initiating a construction project, the department may review and issue a construction permit to a construction project that is not subject to subsection (1) or (2) if the department determines that the review will promote the public health, safety, and welfare.
488488
489489 (9) (10) The department shall assess a fee for each review conducted under this section. The fee is .5% 0.5% of the first $1,000,000.00 of capital expenditure and .85% 0.85% of any amount over $1,000,000.00 of capital expenditure, up to a maximum of $60,000.00.
490490
491491 (10) (11) As used in this section, "capital expenditure" means that term as defined in section 22203, except that capital expenditure does not include the cost of equipment that is not fixed equipment.an expenditure for a single project, including cost of construction, engineering, and fixed equipment that under generally accepted accounting principles is not properly chargeable as an expense of operation. Capital expenditure includes a lease or comparable arrangement by or on behalf of a health facility to
492492
493493 1
494494
495495 2
496496
497497 3
498498
499499 4
500500
501501 5
502502
503503 6
504504
505505 7
506506
507507 8
508508
509509 9
510510
511511 10
512512
513513 11
514514
515515 12
516516
517517 13
518518
519519 14
520520
521521 15
522522
523523 16
524524
525525 17
526526
527527 18
528528
529529 19
530530
531531 20
532532
533533 21
534534
535535 22
536536
537537 23
538538
539539 24
540540
541541 25
542542
543543 26
544544
545545 27
546546
547547 28
548548
549549 29
550550
551551 obtain a health facility, licensed part of a health facility, or fixed equipment for a health facility, if the actual purchase of a health facility, licensed part of a health facility, or fixed equipment for a health facility would have been considered a capital expenditure under former part 222. Capital expenditure includes the cost of studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the acquisition, improvement, expansion, addition, conversion, modernization, new construction, or replacement of physical plant and fixed equipment.
552552
553553 Sec. 20155. (1) Except as otherwise provided in this section, the department shall make at least 1 visit to each licensed health facility or agency every 3 years for survey and evaluation for the purpose of licensure. A visit made according to a complaint must be unannounced. Except for a county medical care facility, a home for the aged, a nursing home, or a hospice residence, the department shall determine whether the visits that are not made according to a complaint are announced or unannounced. The department shall ensure that each newly hired nursing home surveyor, as part of his or her basic training, is assigned full-time to a licensed nursing home for at least 10 days within a 14-day period to observe actual operations outside of the survey process before the trainee begins oversight responsibilities.
554554
555555 (2) The department shall establish a process that ensures both of the following:
556556
557557 (a) A newly hired nursing home surveyor does not make independent compliance decisions during his or her training period.
558558
559559 (b) A nursing home surveyor is not assigned as a member of a survey team for a nursing home in which he or she received training
560560
561561 1
562562
563563 2
564564
565565 3
566566
567567 4
568568
569569 5
570570
571571 6
572572
573573 7
574574
575575 8
576576
577577 9
578578
579579 10
580580
581581 11
582582
583583 12
584584
585585 13
586586
587587 14
588588
589589 15
590590
591591 16
592592
593593 17
594594
595595 18
596596
597597 19
598598
599599 20
600600
601601 21
602602
603603 22
604604
605605 23
606606
607607 24
608608
609609 25
610610
611611 26
612612
613613 27
614614
615615 28
616616
617617 29
618618
619619 for 1 standard survey following the training received in that nursing home.
620620
621621 (3) The department shall perform a criminal history check on all nursing home surveyors in the manner provided for in section 20173a.
622622
623623 (4) A member of a survey team must not be employed by a licensed nursing home or a nursing home management company doing business in this state at the time of conducting a survey under this section. The department shall not assign an individual to be a member of a survey team for purposes of a survey, evaluation, or consultation visit at a nursing home in which he or she was an employee within the preceding 3 years.
624624
625625 (5) The department shall invite representatives from all nursing home provider organizations and the state long-term care ombudsman or his or her designee to participate in the planning process for the joint provider and surveyor training sessions. The department shall include at least 1 representative from nursing home provider organizations that do not own or operate a nursing home representing 30 or more nursing homes statewide in internal surveyor group quality assurance training provided for the purpose of general clarification and interpretation of existing or new regulatory requirements and expectations.
626626
627627 (6) The department shall make available online the general civil service position description related to the required qualifications for individual surveyors. The department shall use the required qualifications to hire, educate, develop, and evaluate surveyors.
628628
629629 (7) The department shall semiannually provide for joint training with nursing home surveyors and providers on at least 1 of
630630
631631 1
632632
633633 2
634634
635635 3
636636
637637 4
638638
639639 5
640640
641641 6
642642
643643 7
644644
645645 8
646646
647647 9
648648
649649 10
650650
651651 11
652652
653653 12
654654
655655 13
656656
657657 14
658658
659659 15
660660
661661 16
662662
663663 17
664664
665665 18
666666
667667 19
668668
669669 20
670670
671671 21
672672
673673 22
674674
675675 23
676676
677677 24
678678
679679 25
680680
681681 26
682682
683683 27
684684
685685 28
686686
687687 29
688688
689689 the 10 most frequently issued federal citations in this state during the past calendar year. The department shall develop a protocol for the review of citation patterns compared to regional outcomes and standards and complaints regarding the nursing home survey process. Except as otherwise provided in this subsection, each member of a department nursing home survey team who is a health professional licensee under article 15 shall earn not less than 50% of his or her required continuing education credits, if any, in geriatric care. If a member of a nursing home survey team is a pharmacist licensed under article 15, he or she shall earn not less than 30% of his or her required continuing education credits in geriatric care.
690690
691691 (8) Subject to subsection (11), the department may waive the visit required by subsection (1) if a health facility or agency, requests a waiver and submits the following as applicable and if all of the requirements of subsection (10) are met:
692692
693693 (a) Evidence that it is currently fully accredited by a body with expertise in the health facility or agency type and the accrediting organization is accepted by the United States Department of Health and Human Services for purposes of 42 USC 1395bb.
694694
695695 (b) A copy of the most recent accreditation report, or executive summary, issued by a body described in subdivision (a), and the health facility's or agency's responses to the accreditation report is submitted to the department at least 30 days from license renewal. Submission of an executive summary does not prevent or prohibit the department from requesting the entire accreditation report if the department considers it necessary.
696696
697697 (c) For a nursing home, a finding of substantial compliance or
698698
699699 1
700700
701701 2
702702
703703 3
704704
705705 4
706706
707707 5
708708
709709 6
710710
711711 7
712712
713713 8
714714
715715 9
716716
717717 10
718718
719719 11
720720
721721 12
722722
723723 13
724724
725725 14
726726
727727 15
728728
729729 16
730730
731731 17
732732
733733 18
734734
735735 19
736736
737737 20
738738
739739 21
740740
741741 22
742742
743743 23
744744
745745 24
746746
747747 25
748748
749749 26
750750
751751 27
752752
753753 28
754754
755755 29
756756
757757 an accepted plan of correction, if applicable, on the most recent standard federal certification survey under part 221.
758758
759759 (9) Except as otherwise provided in subsection (13), accreditation information provided to the department under subsection (8) is confidential, is not a public record, and is not subject to court subpoena. The department shall use the accreditation information only as provided in this section and properly destroy the documentation after a decision on the waiver request is made.
760760
761761 (10) The department shall grant a waiver under subsection (8) if the accreditation report submitted under subsection (8)(b) is less than 3 years old or the most recent standard federal certification survey under part 221 submitted under subsection (8)(c) shows substantial compliance or an accepted plan of correction, if applicable. If the accreditation report is too old, the department may deny the waiver request and conduct the visits required under subsection (8). Denial of a waiver request by the department is not subject to appeal.
762762
763763 (11) This section does not prohibit the department from citing a violation of this part during a survey, conducting investigations or inspections according to section 20156, or conducting surveys of health facilities or agencies for the purpose of complaint investigations. This section does not prohibit the bureau of fire services created in section 1b of the fire prevention code, 1941 PA 207, MCL 29.1b, from conducting annual surveys of hospitals, nursing homes, and county medical care facilities.
764764
765765 (12) At the request of a health facility or agency other than a health facility or agency defined in section 20106(1)(a), (d), (h), and (i), the department may conduct a consultation engineering
766766
767767 1
768768
769769 2
770770
771771 3
772772
773773 4
774774
775775 5
776776
777777 6
778778
779779 7
780780
781781 8
782782
783783 9
784784
785785 10
786786
787787 11
788788
789789 12
790790
791791 13
792792
793793 14
794794
795795 15
796796
797797 16
798798
799799 17
800800
801801 18
802802
803803 19
804804
805805 20
806806
807807 21
808808
809809 22
810810
811811 23
812812
813813 24
814814
815815 25
816816
817817 26
818818
819819 27
820820
821821 28
822822
823823 29
824824
825825 survey of that health facility or agency and provide professional advice and consultation regarding facility construction and design. A health facility or agency may request a voluntary consultation survey under this subsection at any time between licensure surveys. The fees for a consultation engineering survey are the same as the fees established for waivers under section 20161(8). 20161(7).
826826
827827 (13) If the department determines that substantial noncompliance with licensure standards exists or that deficiencies that represent a threat to public safety or patient care exist based on a review of an accreditation report submitted under subsection (8)(b), the department shall prepare a written summary of the substantial noncompliance or deficiencies and the health facility's or agency's response to the department's determination. The department's written summary and the health facility's or agency's response are public documents.
828828
829829 (14) The department or a local health department shall conduct investigations or inspections, other than inspections of financial records, of a county medical care facility, home for the aged, nursing home, or hospice residence without prior notice to the health facility or agency. An employee of a state agency charged with investigating or inspecting the health facility or agency or an employee of a local health department who directly or indirectly gives prior notice regarding an investigation or an inspection, other than an inspection of the financial records, to the health facility or agency or to an employee of the health facility or agency, is guilty of a misdemeanor. Consultation visits that are not for the purpose of annual or follow-up inspection or survey may be announced.
830830
831831 (15) The department shall require periodic reports and a
832832
833833 1
834834
835835 2
836836
837837 3
838838
839839 4
840840
841841 5
842842
843843 6
844844
845845 7
846846
847847 8
848848
849849 9
850850
851851 10
852852
853853 11
854854
855855 12
856856
857857 13
858858
859859 14
860860
861861 15
862862
863863 16
864864
865865 17
866866
867867 18
868868
869869 19
870870
871871 20
872872
873873 21
874874
875875 22
876876
877877 23
878878
879879 24
880880
881881 25
882882
883883 26
884884
885885 27
886886
887887 28
888888
889889 29
890890
891891 health facility or agency shall give the department access to books, records, and other documents maintained by a health facility or agency to the extent necessary to carry out the purpose of this article and the rules promulgated under this article. The department shall not divulge or disclose the contents of the patient's clinical records in a manner that identifies an individual except under court order. The department may copy health facility or agency records as required to document findings. Surveyors shall use electronic resident information, whenever available, as a source of survey-related data and shall request the assistance of a health facility or agency to access the system to maximize data export.
892892
893893 (16) The department may delegate survey, evaluation, or consultation functions to another state agency or to a local health department qualified to perform those functions. The department shall not delegate survey, evaluation, or consultation functions to a local health department that owns or operates a hospice or hospice residence licensed under this article. The department shall delegate under this subsection by cost reimbursement contract between the department and the state agency or local health department. The department shall not delegate survey, evaluation, or consultation functions to nongovernmental agencies, except as provided in this section. The licensee and the department must both agree to the voluntary inspection described in this subsection.
894894
895895 (17) If, upon investigation, the department or a state agency determines that an individual licensed to practice a profession in this state has violated the applicable licensure statute or the rules promulgated under that statute, the department, state agency, or local health department shall forward the evidence it has to the
896896
897897 1
898898
899899 2
900900
901901 3
902902
903903 4
904904
905905 5
906906
907907 6
908908
909909 7
910910
911911 8
912912
913913 9
914914
915915 10
916916
917917 11
918918
919919 12
920920
921921 13
922922
923923 14
924924
925925 15
926926
927927 16
928928
929929 17
930930
931931 18
932932
933933 19
934934
935935 20
936936
937937 21
938938
939939 22
940940
941941 23
942942
943943 24
944944
945945 25
946946
947947 26
948948
949949 27
950950
951951 28
952952
953953 29
954954
955955 appropriate licensing agency.
956956
957957 (18) The department shall conduct a quarterly meeting and invite appropriate stakeholders. The department shall invite as appropriate stakeholders under this subsection at least 1 representative from each nursing home provider organization that does not own or operate a nursing home representing 30 or more nursing homes statewide, the state long-term care ombudsman or his or her designee, and any other clinical experts. Individuals who participate in these quarterly meetings, jointly with the department, may designate advisory workgroups to develop recommendations on opportunities for enhanced promotion of nursing home performance, including, but not limited to, programs that encourage and reward nursing homes that strive for excellence.
958958
959959 (19) A nursing home may use peer-reviewed, evidence-based, nationally recognized clinical process guidelines or peer-reviewed, evidence-based, best-practice resources to develop and implement resident care policies and compliance protocols with measurable outcomes to promote performance excellence.
960960
961961 (20) The department shall consider recommendations from an advisory workgroup created under subsection (18). The department may include training on new and revised peer-reviewed, evidence-based, nationally recognized clinical process guidelines or peer-reviewed, evidence-based, best-practice resources, which contain measurable outcomes, in the joint provider and surveyor training sessions to assist provider efforts toward improved regulatory compliance and performance excellence and to foster a common understanding of accepted peer-reviewed, evidence-based, best-practice resources between providers and the survey agency. The department shall post on its website all peer-reviewed, evidence-
962962
963963 1
964964
965965 2
966966
967967 3
968968
969969 4
970970
971971 5
972972
973973 6
974974
975975 7
976976
977977 8
978978
979979 9
980980
981981 10
982982
983983 11
984984
985985 12
986986
987987 13
988988
989989 14
990990
991991 15
992992
993993 16
994994
995995 17
996996
997997 18
998998
999999 19
10001000
10011001 20
10021002
10031003 21
10041004
10051005 22
10061006
10071007 23
10081008
10091009 24
10101010
10111011 25
10121012
10131013 26
10141014
10151015 27
10161016
10171017 28
10181018
10191019 29
10201020
10211021 based, nationally recognized clinical process guidelines and peer-reviewed, evidence-based, best-practice resources used in a training session under this subsection for provider, surveyor, and public reference.
10221022
10231023 (21) A nursing home shall post the nursing home's survey report in a conspicuous place within the nursing home for public review.
10241024
10251025 (22) Nothing in this section limits the requirements of related state and federal law.
10261026
10271027 Sec. 20161. (1) The department shall assess fees and other assessments for health facility and agency licenses and certificates of need on an annual basis as provided in this article. Until October 1, 2027, except as otherwise provided in this article, fees and assessments must be paid as provided in the following schedule:
10281028
10291029 (a) Freestanding surgical outpatient facilities.............. $500.00 per facility license.
10301030 (b) Hospitals ............... $500.00 per facility license and $10.00 per licensed bed.
10311031 (c) Nursing homes, county medical care facilities, and hospital long-term care units ..... $500.00 per facility license and
10321032 $3.00 per licensed bed over 100 licensed beds.
10331033 (d) Homes for the aged ...... $500.00 per facility license and $6.27 per licensed bed.
10341034 (e) Hospice agencies ........ $500.00 per agency license.
10351035 (f) Hospice residences ...... $500.00 per facility license and $5.00 per licensed bed.
10361036
10371037 (a) Freestanding surgical outpatient facilities..............
10381038
10391039 $500.00 per facility license.
10401040
10411041 (b) Hospitals ...............
10421042
10431043 $500.00 per facility license and $10.00 per licensed bed.
10441044
10451045 (c) Nursing homes, county medical care facilities, and hospital long-term care units .....
10461046
10471047 $500.00 per facility license and
10481048
10491049 $3.00 per licensed bed over 100 licensed beds.
10501050
10511051 (d) Homes for the aged ......
10521052
10531053 $500.00 per facility license and $6.27 per licensed bed.
10541054
10551055 (e) Hospice agencies ........
10561056
10571057 $500.00 per agency license.
10581058
10591059 (f) Hospice residences ......
10601060
10611061 $500.00 per facility license and $5.00 per licensed bed.
10621062
10631063 1
10641064
10651065 2
10661066
10671067 3
10681068
10691069 4
10701070
10711071 5
10721072
10731073 6
10741074
10751075 7
10761076
10771077 8
10781078
10791079 9
10801080
10811081 10
10821082
10831083 11
10841084
10851085 12
10861086
10871087 13
10881088
10891089 14
10901090
10911091 15
10921092
10931093 16
10941094
10951095 17
10961096
10971097 18
10981098
10991099 19
11001100
11011101 20
11021102
11031103 21
11041104
11051105 22
11061106
11071107 23
11081108
11091109 24
11101110
11111111 25
11121112
11131113 26
11141114
11151115 27
11161116
11171117 28
11181118
11191119 29
11201120
11211121 (g) Subject to subsection (11), (10), quality assurance assessment for nursing homes and hospital long-term care units .............. an amount resulting in not more
11221122 than 6% of total industry revenues.
11231123 (h) Subject to subsection (12), (11), quality assurance assessment for hospitals ..................... at a fixed or variable rate that
11241124 generates funds not more than the maximum allowable under the federal matching requirements, after consideration for the amounts in subsection (12)(a) (11)(a) and (i).
11251125 (i) Initial licensure application fee for subdivisions (a), (b), (c), (d), (e), and (f) .. $2,000.00 per initial license.
11261126
11271127 (g) Subject to subsection (11), (10), quality assurance assessment for nursing homes and hospital long-term care units ..............
11281128
11291129 an amount resulting in not more
11301130
11311131 than 6% of total industry revenues.
11321132
11331133 (h) Subject to subsection (12), (11), quality assurance assessment for hospitals .....................
11341134
11351135 at a fixed or variable rate that
11361136
11371137 generates funds not more than the maximum allowable under the federal matching requirements, after consideration for the amounts in subsection (12)(a) (11)(a) and (i).
11381138
11391139 (i) Initial licensure application fee for subdivisions (a), (b), (c), (d), (e), and (f) ..
11401140
11411141 $2,000.00 per initial license.
11421142
11431143 (2) If a hospital requests the department to conduct a certification survey for purposes of title XVIII or title XIX, the hospital shall pay a license fee surcharge of $23.00 per bed. As used in this subsection:
11441144
11451145 (a) "Title XVIII" means title XVIII of the social security act, 42 USC 1395 to 1395lll.
11461146
11471147 (b) "Title XIX" means title XIX of the social security act, 42 USC 1396 to 1396w-7.
11481148
11491149 (3) All of the following apply to the assessment under this
11501150
11511151 1
11521152
11531153 2
11541154
11551155 3
11561156
11571157 4
11581158
11591159 5
11601160
11611161 6
11621162
11631163 7
11641164
11651165 8
11661166
11671167 9
11681168
11691169 10
11701170
11711171 11
11721172
11731173 12
11741174
11751175 13
11761176
11771177 14
11781178
11791179 15
11801180
11811181 16
11821182
11831183 17
11841184
11851185 18
11861186
11871187 19
11881188
11891189 20
11901190
11911191 21
11921192
11931193 22
11941194
11951195 23
11961196
11971197 24
11981198
11991199 25
12001200
12011201 26
12021202
12031203 27
12041204
12051205 28
12061206
12071207 29
12081208
12091209 section for certificates of need:
12101210
12111211 (a) The base fee for a certificate of need is $3,000.00 for each application. For a project requiring a projected capital expenditure of more than $500,000.00 but less than $4,000,000.00, an additional fee of $5,000.00 is added to the base fee. For a project requiring a projected capital expenditure of $4,000,000.00 or more but less than $10,000,000.00, an additional fee of $8,000.00 is added to the base fee. For a project requiring a projected capital expenditure of $10,000,000.00 or more, an additional fee of $12,000.00 is added to the base fee.
12121212
12131213 (b) In addition to the fees under subdivision (a), the applicant shall pay $3,000.00 for any designated complex project including a project scheduled for comparative review or for a consolidated licensed health facility application for acquisition or replacement.
12141214
12151215 (c) If required by the department, the applicant shall pay $1,000.00 for a certificate of need application that receives expedited processing at the request of the applicant.
12161216
12171217 (d) The department shall charge a fee of $500.00 to review any letter of intent requesting or resulting in a waiver from certificate of need review and any amendment request to an approved certificate of need.
12181218
12191219 (e) A health facility or agency that offers certificate of need covered clinical services shall pay $100.00 for each certificate of need approved covered clinical service as part of the certificate of need annual survey at the time of submission of the survey data.
12201220
12211221 (f) Except as otherwise provided in this section, the department shall use the fees collected under this subsection only
12221222
12231223 1
12241224
12251225 2
12261226
12271227 3
12281228
12291229 4
12301230
12311231 5
12321232
12331233 6
12341234
12351235 7
12361236
12371237 8
12381238
12391239 9
12401240
12411241 10
12421242
12431243 11
12441244
12451245 12
12461246
12471247 13
12481248
12491249 14
12501250
12511251 15
12521252
12531253 16
12541254
12551255 17
12561256
12571257 18
12581258
12591259 19
12601260
12611261 20
12621262
12631263 21
12641264
12651265 22
12661266
12671267 23
12681268
12691269 24
12701270
12711271 25
12721272
12731273 26
12741274
12751275 27
12761276
12771277 28
12781278
12791279 29
12801280
12811281 to fund the certificate of need program. Funds remaining in the certificate of need program at the end of the fiscal year do not lapse to the general fund but remain available to fund the certificate of need program in subsequent years.
12821282
12831283 (3) (4) A license issued under this part is effective for no longer than 1 year after the date of issuance.
12841284
12851285 (4) (5) Fees described in this section are payable to the department at the time an application for a license, permit, or certificate is submitted. If an application for a license, permit, or certificate is denied or if a license, permit, or certificate is revoked before its expiration date, the department shall not refund fees paid to the department.
12861286
12871287 (5) (6) The fee for a provisional license or temporary permit is the same as for a license. A license may be issued at the expiration date of a temporary permit without an additional fee for the balance of the period for which the fee was paid if the requirements for licensure are met.
12881288
12891289 (6) (7) The cost of licensure activities must be supported by license fees.
12901290
12911291 (7) (8) The application fee for a waiver under section 21564 is $200.00 plus $40.00 per hour for the professional services and travel expenses directly related to processing the application. The travel expenses must be calculated in accordance with the state standardized travel regulations of the department of technology, management, and budget in effect at the time of the travel.
12921292
12931293 (8) (9) An applicant for licensure or renewal of licensure under part 209 shall pay the applicable fees set forth in part 209.
12941294
12951295 (9) (10) Except as otherwise provided in this section, the fees and assessments collected under this section must be deposited
12961296
12971297 1
12981298
12991299 2
13001300
13011301 3
13021302
13031303 4
13041304
13051305 5
13061306
13071307 6
13081308
13091309 7
13101310
13111311 8
13121312
13131313 9
13141314
13151315 10
13161316
13171317 11
13181318
13191319 12
13201320
13211321 13
13221322
13231323 14
13241324
13251325 15
13261326
13271327 16
13281328
13291329 17
13301330
13311331 18
13321332
13331333 19
13341334
13351335 20
13361336
13371337 21
13381338
13391339 22
13401340
13411341 23
13421342
13431343 24
13441344
13451345 25
13461346
13471347 26
13481348
13491349 27
13501350
13511351 28
13521352
13531353 29
13541354
13551355 in the state treasury, to the credit of the general fund. The department may use the unreserved fund balance in fees and assessments for the criminal history check program required under this article.
13561356
13571357 (10) (11) The quality assurance assessment collected under subsection (1)(g) and all federal matching funds attributed to that assessment must be used only for the following purposes and under the following specific circumstances:
13581358
13591359 (a) The quality assurance assessment and all federal matching funds attributed to that assessment must be used to finance Medicaid nursing home reimbursement payments. Only licensed nursing homes and hospital long-term care units that are assessed the quality assurance assessment and participate in the Medicaid program are eligible for increased per diem Medicaid reimbursement rates under this subdivision. A nursing home or long-term care unit that is assessed the quality assurance assessment and that does not pay the assessment required under subsection (1)(g) in accordance with subdivision (c)(i) or in accordance with a written payment agreement with this state shall not receive the increased per diem Medicaid reimbursement rates under this subdivision until all of its outstanding quality assurance assessments and any penalties assessed under subdivision (f) have been paid in full. This subdivision does not authorize or require the department to overspend tax revenue in violation of the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
13601360
13611361 (b) Except as otherwise provided under subdivision (c), beginning October 1, 2005, the quality assurance assessment is based on the total number of patient days of care each nursing home and hospital long-term care unit provided to non-Medicare patients
13621362
13631363 1
13641364
13651365 2
13661366
13671367 3
13681368
13691369 4
13701370
13711371 5
13721372
13731373 6
13741374
13751375 7
13761376
13771377 8
13781378
13791379 9
13801380
13811381 10
13821382
13831383 11
13841384
13851385 12
13861386
13871387 13
13881388
13891389 14
13901390
13911391 15
13921392
13931393 16
13941394
13951395 17
13961396
13971397 18
13981398
13991399 19
14001400
14011401 20
14021402
14031403 21
14041404
14051405 22
14061406
14071407 23
14081408
14091409 24
14101410
14111411 25
14121412
14131413 26
14141414
14151415 27
14161416
14171417 28
14181418
14191419 29
14201420
14211421 within the immediately preceding year, must be assessed at a uniform rate on October 1, 2005 and subsequently on October 1 of each following year, and is payable on a quarterly basis, with the first payment due 90 days after the date the assessment is assessed.
14221422
14231423 (c) Within 30 days after September 30, 2005, the department shall submit an application to the Centers for Medicare and Medicaid Services to request a waiver according to 42 CFR 433.68(e) to implement this subdivision as follows:
14241424
14251425 (i) If the waiver is approved, the quality assurance assessment rate for a nursing home or hospital long-term care unit with less than 40 licensed beds or with the maximum number, or more than the maximum number, of licensed beds necessary to secure federal approval of the application is $2.00 per non-Medicare patient day of care provided within the immediately preceding year or a rate as otherwise altered on the application for the waiver to obtain federal approval. If the waiver is approved, for all other nursing homes and long-term care units the quality assurance assessment rate is to be calculated by dividing the total statewide maximum allowable assessment permitted under subsection (1)(g) less the total amount to be paid by the nursing homes and long-term care units with less than 40 licensed beds or with the maximum number, or more than the maximum number, of licensed beds necessary to secure federal approval of the application by the total number of non-Medicare patient days of care provided within the immediately preceding year by those nursing homes and long-term care units with more than 39 licensed beds, but less than the maximum number of licensed beds necessary to secure federal approval. The quality assurance assessment, as provided under this subparagraph, must be
14261426
14271427 1
14281428
14291429 2
14301430
14311431 3
14321432
14331433 4
14341434
14351435 5
14361436
14371437 6
14381438
14391439 7
14401440
14411441 8
14421442
14431443 9
14441444
14451445 10
14461446
14471447 11
14481448
14491449 12
14501450
14511451 13
14521452
14531453 14
14541454
14551455 15
14561456
14571457 16
14581458
14591459 17
14601460
14611461 18
14621462
14631463 19
14641464
14651465 20
14661466
14671467 21
14681468
14691469 22
14701470
14711471 23
14721472
14731473 24
14741474
14751475 25
14761476
14771477 26
14781478
14791479 27
14801480
14811481 28
14821482
14831483 29
14841484
14851485 assessed in the first quarter after federal approval of the waiver and must be subsequently assessed on October 1 of each following year, and is payable on a quarterly basis, with the first payment due 90 days after the date the assessment is assessed.
14861486
14871487 (ii) If the waiver is approved, continuing care retirement centers are exempt from the quality assurance assessment if the continuing care retirement center requires each center resident to provide an initial life interest payment of $150,000.00, on average, per resident to ensure payment for that resident's residency and services and the continuing care retirement center utilizes all of the initial life interest payment before the resident becomes eligible for medical assistance under the state's Medicaid plan. As used in this subparagraph, "continuing care retirement center" means a nursing care facility that provides independent living services, assisted living services, and nursing care and medical treatment services, in a campus-like setting that has shared facilities or common areas, or both.
14881488
14891489 (d) Beginning May 10, 2002, the department shall increase the per diem nursing home Medicaid reimbursement rates for the balance of that year. For each subsequent year in which the quality assurance assessment is assessed and collected, the department shall maintain the Medicaid nursing home reimbursement payment increase financed by the quality assurance assessment.
14901490
14911491 (e) The department shall implement this section in a manner that complies with federal requirements necessary to ensure that the quality assurance assessment qualifies for federal matching funds.
14921492
14931493 (f) If a nursing home or a hospital long-term care unit fails to pay the assessment required by subsection (1)(g), the department
14941494
14951495 1
14961496
14971497 2
14981498
14991499 3
15001500
15011501 4
15021502
15031503 5
15041504
15051505 6
15061506
15071507 7
15081508
15091509 8
15101510
15111511 9
15121512
15131513 10
15141514
15151515 11
15161516
15171517 12
15181518
15191519 13
15201520
15211521 14
15221522
15231523 15
15241524
15251525 16
15261526
15271527 17
15281528
15291529 18
15301530
15311531 19
15321532
15331533 20
15341534
15351535 21
15361536
15371537 22
15381538
15391539 23
15401540
15411541 24
15421542
15431543 25
15441544
15451545 26
15461546
15471547 27
15481548
15491549 28
15501550
15511551 29
15521552
15531553 may assess the nursing home or hospital long-term care unit a penalty of 5% of the assessment for each month that the assessment and penalty are not paid up to a maximum of 50% of the assessment. The department may also refer for collection to the department of treasury past due amounts consistent with section 13 of 1941 PA 122, MCL 205.13.
15541554
15551555 (g) The Medicaid nursing home quality assurance assessment fund is established in the state treasury. The department shall deposit the revenue raised through the quality assurance assessment with the state treasurer for deposit in the Medicaid nursing home quality assurance assessment fund.
15561556
15571557 (h) The department shall not implement this subsection in a manner that conflicts with 42 USC 1396b(w).
15581558
15591559 (i) The quality assurance assessment collected under subsection (1)(g) must be prorated on a quarterly basis for any licensed beds added to or subtracted from a nursing home or hospital long-term care unit since the immediately preceding July 1. Any adjustments in payments are due on the next quarterly installment due date.
15601560
15611561 (j) In each fiscal year governed by this subsection, Medicaid reimbursement rates must not be reduced below the Medicaid reimbursement rates in effect on April 1, 2002 as a direct result of the quality assurance assessment collected under subsection (1)(g).
15621562
15631563 (k) The state retention amount of the quality assurance assessment collected under subsection (1)(g) must be equal to 13.2% of the federal funds generated by the nursing homes and hospital long-term care units quality assurance assessment, including the state retention amount. The state retention amount must be
15641564
15651565 1
15661566
15671567 2
15681568
15691569 3
15701570
15711571 4
15721572
15731573 5
15741574
15751575 6
15761576
15771577 7
15781578
15791579 8
15801580
15811581 9
15821582
15831583 10
15841584
15851585 11
15861586
15871587 12
15881588
15891589 13
15901590
15911591 14
15921592
15931593 15
15941594
15951595 16
15961596
15971597 17
15981598
15991599 18
16001600
16011601 19
16021602
16031603 20
16041604
16051605 21
16061606
16071607 22
16081608
16091609 23
16101610
16111611 24
16121612
16131613 25
16141614
16151615 26
16161616
16171617 27
16181618
16191619 28
16201620
16211621 29
16221622
16231623 appropriated each fiscal year to the department to support Medicaid expenditures for long-term care services. These funds must offset an identical amount of general fund/general purpose revenue originally appropriated for that purpose.
16241624
16251625 (l) Beginning October 1, 2027, the department shall not assess or collect the quality assurance assessment or apply for federal matching funds. The quality assurance assessment collected under subsection (1)(g) must not be assessed or collected after September 30, 2011 if the quality assurance assessment is not eligible for federal matching funds. Any portion of the quality assurance assessment collected from a nursing home or hospital long-term care unit that is not eligible for federal matching funds must be returned to the nursing home or hospital long-term care unit.
16261626
16271627 (11) (12) The quality assurance dedication is an earmarked assessment collected under subsection (1)(h). That assessment and all federal matching funds attributed to that assessment must be used only for the following purpose and under the following specific circumstances:
16281628
16291629 (a) To maintain the increased Medicaid reimbursement rate increases as provided for in subdivision (c).
16301630
16311631 (b) The quality assurance assessment must be assessed on all net patient revenue, before deduction of expenses, less Medicare net revenue, as reported in the most recently available Medicare cost report and is payable on a quarterly basis, with the first payment due 90 days after the date the assessment is assessed. As used in this subdivision, "Medicare net revenue" includes Medicare payments and amounts collected for coinsurance and deductibles.
16321632
16331633 (c) Beginning October 1, 2002, the department shall increase the hospital Medicaid reimbursement rates for the balance of that
16341634
16351635 1
16361636
16371637 2
16381638
16391639 3
16401640
16411641 4
16421642
16431643 5
16441644
16451645 6
16461646
16471647 7
16481648
16491649 8
16501650
16511651 9
16521652
16531653 10
16541654
16551655 11
16561656
16571657 12
16581658
16591659 13
16601660
16611661 14
16621662
16631663 15
16641664
16651665 16
16661666
16671667 17
16681668
16691669 18
16701670
16711671 19
16721672
16731673 20
16741674
16751675 21
16761676
16771677 22
16781678
16791679 23
16801680
16811681 24
16821682
16831683 25
16841684
16851685 26
16861686
16871687 27
16881688
16891689 28
16901690
16911691 29
16921692
16931693 year. For each subsequent year in which the quality assurance assessment is assessed and collected, the department shall maintain the hospital Medicaid reimbursement rate increase financed by the quality assurance assessments.
16941694
16951695 (d) The department shall implement this section in a manner that complies with federal requirements necessary to ensure that the quality assurance assessment qualifies for federal matching funds.
16961696
16971697 (e) If a hospital fails to pay the assessment required by subsection (1)(h), the department may assess the hospital a penalty of 5% of the assessment for each month that the assessment and penalty are not paid up to a maximum of 50% of the assessment. The department may also refer for collection to the department of treasury past due amounts consistent with section 13 of 1941 PA 122, MCL 205.13.
16981698
16991699 (f) The hospital quality assurance assessment fund is established in the state treasury. The department shall deposit the revenue raised through the quality assurance assessment with the state treasurer for deposit in the hospital quality assurance assessment fund.
17001700
17011701 (g) In each fiscal year governed by this subsection, the quality assurance assessment must only be collected and expended if Medicaid hospital inpatient DRG and outpatient reimbursement rates and graduate medical education payments are not below the level of rates and payments in effect on April 1, 2002 as a direct result of the quality assurance assessment collected under subsection (1)(h), except as provided in subdivision (h).
17021702
17031703 (h) The quality assurance assessment collected under subsection (1)(h) must not be assessed or collected after September
17041704
17051705 1
17061706
17071707 2
17081708
17091709 3
17101710
17111711 4
17121712
17131713 5
17141714
17151715 6
17161716
17171717 7
17181718
17191719 8
17201720
17211721 9
17221722
17231723 10
17241724
17251725 11
17261726
17271727 12
17281728
17291729 13
17301730
17311731 14
17321732
17331733 15
17341734
17351735 16
17361736
17371737 17
17381738
17391739 18
17401740
17411741 19
17421742
17431743 20
17441744
17451745 21
17461746
17471747 22
17481748
17491749 23
17501750
17511751 24
17521752
17531753 25
17541754
17551755 26
17561756
17571757 27
17581758
17591759 28
17601760
17611761 29
17621762
17631763 30, 2011 if the quality assurance assessment is not eligible for federal matching funds. Any portion of the quality assurance assessment collected from a hospital that is not eligible for federal matching funds must be returned to the hospital.
17641764
17651765 (i) The state retention amount of the quality assurance assessment collected under subsection (1)(h) must be equal to 13.2% of the federal funds generated by the hospital quality assurance assessment, including the state retention amount. The 13.2% state retention amount described in this subdivision does not apply to the Healthy Michigan plan. Beginning in the fiscal year ending September 30, 2018, and for each fiscal year thereafter, there is a retention amount of at least $118,420,600.00 for each fiscal year for the Healthy Michigan plan. By May 31 of each year, the department, the state budget office, and the Michigan Health and Hospital Association shall identify an appropriate retention amount for the Healthy Michigan plan. The state retention percentage must be applied proportionately to each hospital quality assurance assessment program to determine the retention amount for each program. The state retention amount must be appropriated each fiscal year to the department to support Medicaid expenditures for hospital services and therapy. These funds must offset an identical amount of general fund/general purpose revenue originally appropriated for that purpose.
17661766
17671767 (12) (13) The department may establish a quality assurance assessment to increase ambulance reimbursement as follows:
17681768
17691769 (a) The quality assurance assessment authorized under this subsection must be used to provide reimbursement to Medicaid ambulance providers. The department may promulgate rules to provide the structure of the quality assurance assessment authorized under
17701770
17711771 1
17721772
17731773 2
17741774
17751775 3
17761776
17771777 4
17781778
17791779 5
17801780
17811781 6
17821782
17831783 7
17841784
17851785 8
17861786
17871787 9
17881788
17891789 10
17901790
17911791 11
17921792
17931793 12
17941794
17951795 13
17961796
17971797 14
17981798
17991799 15
18001800
18011801 16
18021802
18031803 17
18041804
18051805 18
18061806
18071807 19
18081808
18091809 20
18101810
18111811 21
18121812
18131813 22
18141814
18151815 23
18161816
18171817 24
18181818
18191819 25
18201820
18211821 26
18221822
18231823 27
18241824
18251825 28
18261826
18271827 29
18281828
18291829 this subsection and the level of the assessment.
18301830
18311831 (b) The department shall implement this subsection in a manner that complies with federal requirements necessary to ensure that the quality assurance assessment qualifies for federal matching funds.
18321832
18331833 (c) The total annual collections by the department under this subsection must not exceed $20,000,000.00.
18341834
18351835 (d) The quality assurance assessment authorized under this subsection must not be collected after October 1, 2027. The quality assurance assessment authorized under this subsection must no longer be collected or assessed if the quality assurance assessment authorized under this subsection is not eligible for federal matching funds.
18361836
18371837 (e) By November 1 of each year, the department shall send a notification to each ambulance operation that will be assessed the quality assurance assessment authorized under this subsection during the year in which the notification is sent.
18381838
18391839 (13) (14) The quality assurance assessment provided for under this section is a tax that is levied on a health facility or agency.
18401840
18411841 (14) (15) As used in this section:
18421842
18431843 (a) "Healthy Michigan plan" means the medical assistance program described in section 105d of the social welfare act, 1939 PA 280, MCL 400.105d, that has a federal matching fund rate of not less than 90%.
18441844
18451845 (b) "Medicaid" means that term as defined in section 22207. the program for medical assistance established under title XIX of the social security act, 42 USC 1396 to 1396w-7, and administered by the department of health and human services under the social
18461846
18471847 1
18481848
18491849 2
18501850
18511851 3
18521852
18531853 4
18541854
18551855 5
18561856
18571857 6
18581858
18591859 7
18601860
18611861 8
18621862
18631863 9
18641864
18651865 10
18661866
18671867 11
18681868
18691869 12
18701870
18711871 13
18721872
18731873 14
18741874
18751875 15
18761876
18771877 16
18781878
18791879 17
18801880
18811881 18
18821882
18831883 19
18841884
18851885 20
18861886
18871887 21
18881888
18891889 22
18901890
18911891 23
18921892
18931893 24
18941894
18951895 25
18961896
18971897 26
18981898
18991899 27
19001900
19011901 28
19021902
19031903 29
19041904
19051905 welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
19061906
19071907 Sec. 20164. (1) Except as provided in part 209, a license, certification, provisional license, or limited license is valid for not more than 1 year after the date of issuance.
19081908
19091909 (2) A license , or certification , or certificate of need is not transferable and must state the persons, buildings, and properties to which it applies. Applications for licensure or certification because of transfer of ownership or essential ownership interest must not be acted upon until satisfactory evidence is provided of compliance with part 222.
19101910
19111911 (3) If ownership is not voluntarily transferred, the department must be notified immediately and the new owner shall apply for a license and certification not later than 30 days after the transfer.
19121912
19131913 Sec. 20165. (1) Except as otherwise provided in this section, after notice of intent to an applicant or licensee to deny, limit, suspend, or revoke the applicant's or licensee's license or certification and an opportunity for a hearing, the department may deny, limit, suspend, or revoke the license or certification or impose an administrative fine on a licensee if 1 or more of the following exist:
19141914
19151915 (a) Fraud or deceit in obtaining or attempting to obtain a license or certification or in the operation of the licensed health facility or agency.
19161916
19171917 (b) A violation of this article or a rule promulgated under this article.
19181918
19191919 (c) False or misleading advertising.
19201920
19211921 (d) Negligence or failure to exercise due care, including negligent supervision of employees and subordinates.
19221922
19231923 1
19241924
19251925 2
19261926
19271927 3
19281928
19291929 4
19301930
19311931 5
19321932
19331933 6
19341934
19351935 7
19361936
19371937 8
19381938
19391939 9
19401940
19411941 10
19421942
19431943 11
19441944
19451945 12
19461946
19471947 13
19481948
19491949 14
19501950
19511951 15
19521952
19531953 16
19541954
19551955 17
19561956
19571957 18
19581958
19591959 19
19601960
19611961 20
19621962
19631963 21
19641964
19651965 22
19661966
19671967 23
19681968
19691969 24
19701970
19711971 25
19721972
19731973 26
19741974
19751975 27
19761976
19771977 28
19781978
19791979 29
19801980
19811981 (e) Permitting a license or certificate to be used by an unauthorized health facility or agency.
19821982
19831983 (f) Evidence of abuse regarding a patient's health, welfare, or safety or the denial of a patient's rights.
19841984
19851985 (g) Failure to comply with section 10115.
19861986
19871987 (h) Failure to comply with former part 222 or a term, condition, or stipulation of a certificate of need issued under former part 222, or both. This subdivision only applies to a failure to comply that occurred before the effective date of the amendatory act that repealed part 222.
19881988
19891989 (i) A violation of section 20197(1).
19901990
19911991 (2) The department may deny an application for a license or certification based on a finding of a condition or practice that would constitute a violation of this article if the applicant were a licensee.
19921992
19931993 (3) Denial, suspension, or revocation of an individual emergency medical services personnel license under part 209 is governed by section 20958.
19941994
19951995 (4) If the department determines under subsection (1) that a health facility or agency has violated section 20197(1), the department shall impose an administrative fine of $5,000,000.00 on the health facility or agency.
19961996
19971997 Sec. 20166. (1) Notice of intent to deny, limit, suspend, or revoke a license or certification shall must be given by certified mail or personal service, shall set forth the particular reasons for the proposed action, and shall fix a date, not less that than 30 days after the date of service, on which the applicant or licensee shall be is given the opportunity for a hearing before the director or the director's authorized representative. The hearing
19981998
19991999 1
20002000
20012001 2
20022002
20032003 3
20042004
20052005 4
20062006
20072007 5
20082008
20092009 6
20102010
20112011 7
20122012
20132013 8
20142014
20152015 9
20162016
20172017 10
20182018
20192019 11
20202020
20212021 12
20222022
20232023 13
20242024
20252025 14
20262026
20272027 15
20282028
20292029 16
20302030
20312031 17
20322032
20332033 18
20342034
20352035 19
20362036
20372037 20
20382038
20392039 21
20402040
20412041 22
20422042
20432043 23
20442044
20452045 24
20462046
20472047 25
20482048
20492049 26
20502050
20512051 27
20522052
20532053 28
20542054
20552055 29
20562056
20572057 shall must be conducted in accordance with the administrative procedures act of 1969 and rules promulgated by the department. A full and complete record shall must be kept of the proceeding and shall must be transcribed when requested by an interested party, who shall pay the cost of preparing the transcript.
20582058
20592059 (2) On the basis of a hearing or on the default of the applicant or licensee, the department may issue, deny, limit, suspend, or revoke a license or certification. A copy of the determination shall must be sent by certified mail or served personally upon the applicant or licensee. The determination becomes final 30 days after it is mailed or served, unless the applicant or licensee within the 30 days appeals the decision to the circuit court in the county of jurisdiction or to the Ingham county County circuit court.
20602060
20612061 (3) The department may establish procedures, hold hearings, administer oaths, issue subpoenas, or order testimony to be taken at a hearing or by deposition in a proceeding pending at any stage of the proceeding. A person may be compelled to appear and testify and to produce books, papers, or documents in a proceeding.
20622062
20632063 (4) In case of disobedience of a subpoena, a party to a hearing may invoke the aid of the circuit court of the jurisdiction in which the hearing is held to require the attendance and testimony of witnesses. The circuit court may issue an order requiring an individual to appear and give testimony. Failure to obey the order of the circuit court may be punished by the court as a contempt.
20642064
20652065 (5) The department shall not deny, limit, suspend, or revoke a license on the basis of an applicant's or licensee's failure to show a need for a health facility or agency unless the health
20662066
20672067 1
20682068
20692069 2
20702070
20712071 3
20722072
20732073 4
20742074
20752075 5
20762076
20772077 6
20782078
20792079 7
20802080
20812081 8
20822082
20832083 9
20842084
20852085 10
20862086
20872087 11
20882088
20892089 12
20902090
20912091 13
20922092
20932093 14
20942094
20952095 15
20962096
20972097 16
20982098
20992099 17
21002100
21012101 18
21022102
21032103 19
21042104
21052105 20
21062106
21072107 21
21082108
21092109 22
21102110
21112111 23
21122112
21132113 24
21142114
21152115 25
21162116
21172117 26
21182118
21192119 27
21202120
21212121 28
21222122
21232123 29
21242124
21252125 facility or agency has did not obtained obtain a certificate of need as required by former part 222.
21262126
21272127 Sec. 21551. (1) A hospital licensed under this article and located in a nonurbanized area may apply to the department to temporarily delicense the following:
21282128
21292129 (a) Not more than 50% of its licensed beds for not more than 5 years.
21302130
21312131 (b) If the hospital is a rural emergency hospital, 100% of its licensed beds for not more than 5 years.
21322132
21332133 (2) A hospital that is granted a temporary delicensure of beds under subsection (1) may apply to the department for an extension of temporary delicensure for those beds for up to an additional 5 years to the extent that the hospital actually met the requirements of subsection (6) during the initial period of delicensure granted under subsection (1). The department shall grant an extension under this subsection unless the department determines under part 222 that there is a demonstrated need for the delicensed beds in the hospital group in which the hospital is located. If the department does not grant an extension under this subsection, the hospital shall request relicensure of the beds under subsection (7) or allow the beds to become permanently delicensed under subsection (8).
21342134
21352135 (3) Except as otherwise provided in this section, for a period of 90 days after January 1, 1991, if a hospital is located in a distressed area and has an annual indigent volume consisting of not less than 25% indigent patients, the hospital may apply to the department to temporarily delicense not more than 50% of its licensed beds for a period of not more than 2 years. On the receipt of a complete application under this subsection, the department shall temporarily delicense the beds indicated in the application.
21362136
21372137 1
21382138
21392139 2
21402140
21412141 3
21422142
21432143 4
21442144
21452145 5
21462146
21472147 6
21482148
21492149 7
21502150
21512151 8
21522152
21532153 9
21542154
21552155 10
21562156
21572157 11
21582158
21592159 12
21602160
21612161 13
21622162
21632163 14
21642164
21652165 15
21662166
21672167 16
21682168
21692169 17
21702170
21712171 18
21722172
21732173 19
21742174
21752175 20
21762176
21772177 21
21782178
21792179 22
21802180
21812181 23
21822182
21832183 24
21842184
21852185 25
21862186
21872187 26
21882188
21892189 27
21902190
21912191 28
21922192
21932193 29
21942194
21952195 The department shall not grant an extension of temporary delicensure under this subsection.
21962196
21972197 (4) An application under subsection (1) or (3) must be on a form provided by the department. The form must contain all of the following information:
21982198
21992199 (a) The number and location of the specific beds to be delicensed.
22002200
22012201 (b) The period of time during which the beds will be delicensed.
22022202
22032203 (c) The alternative use proposed for the space occupied by the beds to be delicensed.
22042204
22052205 (5) A hospital that files an application under subsection (1) or (3) may file an amended application with the department on a form provided by the department. The hospital shall state on the form the purpose of the amendment. If the hospital meets the requirements of this section, the department shall so amend the hospital's original application.
22062206
22072207 (6) An alternative use of space made available by the delicensure of beds under this section does not result in a violation of this article or the rules promulgated under this article. Along with the application, an applicant for delicensure under subsection (1) or (3) shall submit to the department plans that indicate to the satisfaction of the department that the space occupied by the beds proposed for temporary delicensure will be used for 1 or more of the following:
22082208
22092209 (a) An alternative use that over the proposed period of temporary delicensure would defray the depreciation and interest costs that otherwise would be allocated to the space along with the operating expenses related to the alternative use.
22102210
22112211 1
22122212
22132213 2
22142214
22152215 3
22162216
22172217 4
22182218
22192219 5
22202220
22212221 6
22222222
22232223 7
22242224
22252225 8
22262226
22272227 9
22282228
22292229 10
22302230
22312231 11
22322232
22332233 12
22342234
22352235 13
22362236
22372237 14
22382238
22392239 15
22402240
22412241 16
22422242
22432243 17
22442244
22452245 18
22462246
22472247 19
22482248
22492249 20
22502250
22512251 21
22522252
22532253 22
22542254
22552255 23
22562256
22572257 24
22582258
22592259 25
22602260
22612261 26
22622262
22632263 27
22642264
22652265 28
22662266
22672267 29
22682268
22692269 (b) To correct a licensing deficiency previously identified by the department.
22702270
22712271 (c) Nonhospital purposes, including, but not limited to, community service projects, if the depreciation and interest costs for all capital expenditures that would otherwise be allocated to the space, as well as any operating costs related to the proposed alternative use, would not be considered as hospital costs for purposes of reimbursement.
22722272
22732273 (7) The department shall relicense beds that are temporarily delicensed under this section if all of the following requirements are met:
22742274
22752275 (a) The hospital files with the department a written request for relicensure not less than 90 days before the earlier of the following:
22762276
22772277 (i) The expiration of the period for which delicensure was granted.
22782278
22792279 (ii) The date upon which the hospital is requesting relicensure.
22802280
22812281 (iii) The last hospital license renewal date in the delicensure period.
22822282
22832283 (b) The space to be occupied by the relicensed beds is in compliance with this article and the rules promulgated under this article, including all licensure standards in effect at the time of relicensure, or the hospital has a plan of corrections that has been approved by the department.
22842284
22852285 (8) If a hospital does not meet all of the requirements of subsection (7) or if a hospital decides to allow beds to become permanently delicensed as described in subsection (2), then all of the temporarily delicensed beds must be automatically and
22862286
22872287 1
22882288
22892289 2
22902290
22912291 3
22922292
22932293 4
22942294
22952295 5
22962296
22972297 6
22982298
22992299 7
23002300
23012301 8
23022302
23032303 9
23042304
23052305 10
23062306
23072307 11
23082308
23092309 12
23102310
23112311 13
23122312
23132313 14
23142314
23152315 15
23162316
23172317 16
23182318
23192319 17
23202320
23212321 18
23222322
23232323 19
23242324
23252325 20
23262326
23272327 21
23282328
23292329 22
23302330
23312331 23
23322332
23332333 24
23342334
23352335 25
23362336
23372337 26
23382338
23392339 27
23402340
23412341 28
23422342
23432343 29
23442344
23452345 permanently delicensed effective on the last day of the period for which the department granted temporary delicensure.
23462346
23472347 (9) The department of health and human services shall continue to count beds temporarily delicensed under this section in the department of health and human services' bed inventory for purposes of determining hospital bed need under part 222 in the hospital group in which the beds are located. The department of health and human services shall indicate in the bed inventory which beds are licensed and which beds are temporarily delicensed under this section. The department of health and human services shall not include a hospital's temporarily delicensed beds in the hospital's licensed bed count.
23482348
23492349 (10) A hospital that is granted temporary delicensure of beds under this section shall not transfer the beds to another site or hospital without first obtaining a certificate of need.
23502350
23512351 (10) (11) As used in this section:
23522352
23532353 (a) "Distressed area" means a city that meets all of the following criteria:
23542354
23552355 (i) Had a negative population change from 2010 to the date of the 2020 federal decennial census.
23562356
23572357 (ii) From 1972 to 1989, had an increase in its state equalized valuation that is less than the statewide average.
23582358
23592359 (iii) Has a poverty level that is greater than the statewide average, according to the 1980 federal decennial census.
23602360
23612361 (iv) Was eligible for an urban development action grant from the United States Department of Housing and Urban Development in 1984 and was listed in 49 FR No. 28 (February 9, 1984) or 49 FR No. 30 (February 13, 1984).
23622362
23632363 (v) Had an unemployment rate that was higher than the
23642364
23652365 1
23662366
23672367 2
23682368
23692369 3
23702370
23712371 4
23722372
23732373 5
23742374
23752375 6
23762376
23772377 7
23782378
23792379 8
23802380
23812381 9
23822382
23832383 10
23842384
23852385 11
23862386
23872387 12
23882388
23892389 13
23902390
23912391 14
23922392
23932393 15
23942394
23952395 16
23962396
23972397 17
23982398
23992399 18
24002400
24012401 19
24022402
24032403 20
24042404
24052405 21
24062406
24072407 22
24082408
24092409 23
24102410
24112411 24
24122412
24132413 25
24142414
24152415 26
24162416
24172417 27
24182418
24192419 28
24202420
24212421 29
24222422
24232423 statewide average for 3 of the 5 years from 1981 to 1985.
24242424
24252425 (b) "Indigent volume" means the ratio of a hospital's indigent charges to its total charges expressed as a percentage as determined by the department of health and human services after November 12, 1990, under chapter 8 of the department of health and human services guidelines titled "Medical Assistance Program Manual".
24262426
24272427 (c) "Nonurbanized area" means an area that is not an urbanized area.
24282428
24292429 (d) "Urbanized area" means that term as defined by the Office of Federal Statistical Policy and Standards of the United States Department of Commerce in the appendix entitled "General Procedures and Definitions", 45 FR p. 962 (January 3, 1980), which document is incorporated by reference.
24302430
24312431 Sec. 21562. (1) A hospital designated as a rural community hospital under section 21561 shall be a limited service hospital directed toward the delivery of not more than basic acute care services in order to assure ensure appropriate access in the rural area.
24322432
24332433 (2) The rules promulgated to implement this part shall must require that a hospital designated as a rural community hospital under section 21561 shall provide no more than the following services:
24342434
24352435 (a) Emergency care.
24362436
24372437 (b) Stabilization care for transfer to another facility.
24382438
24392439 (c) Inpatient care.
24402440
24412441 (d) Radiology and laboratory services.
24422442
24432443 (e) Ambulatory care.
24442444
24452445 (f) Obstetrical services.
24462446
24472447 1
24482448
24492449 2
24502450
24512451 3
24522452
24532453 4
24542454
24552455 5
24562456
24572457 6
24582458
24592459 7
24602460
24612461 8
24622462
24632463 9
24642464
24652465 10
24662466
24672467 11
24682468
24692469 12
24702470
24712471 13
24722472
24732473 14
24742474
24752475 15
24762476
24772477 16
24782478
24792479 17
24802480
24812481 18
24822482
24832483 19
24842484
24852485 20
24862486
24872487 21
24882488
24892489 22
24902490
24912491 23
24922492
24932493 24
24942494
24952495 25
24962496
24972497 26
24982498
24992499 27
25002500
25012501 28
25022502
25032503 29
25042504
25052505 (g) Outpatient services.
25062506
25072507 (h) Other services determined as appropriate by the ad hoc advisory committee created in subsection (5).department.
25082508
25092509 (3) A rural community hospital shall enter into an agreement with the department of social health and human services to participate in the medicaid Medicaid program. As used in this subsection, "medicaid" "Medicaid" means that term as defined in section 22207.the program for medical assistance established under title XIX of the social security act, 42 USC 1396 to 1396w-7, and administered by the department of health and human services under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
25102510
25112511 (4) A rural community hospital shall meet the conditions for participation in the federal medicare Medicare program under title XVIII of the social security act, 42 USC 1395 to 1395lll.
25122512
25132513 (5) Not later than 3 months after the effective date of this section, the director shall appoint an ad hoc advisory committee to develop recommendations for rules to designate the maximum number of beds and the services to be provided by a rural community hospital. In developing recommendations under this subsection, the ad hoc advisory committee shall review the provisions of the code pertaining to hospital licensure in order to determine those provisions that should apply to rural community hospitals. The director shall direct the committee to report its recommendations to the department within 12 months after the committee is appointed. The ad hoc advisory committee shall be appointed as follows:
25142514
25152515 (a) Twenty-five percent of the members shall be representatives from hospitals with fewer than 100 licensed beds.
25162516
25172517 (b) Twenty-five percent of the members shall be
25182518
25192519 1
25202520
25212521 2
25222522
25232523 3
25242524
25252525 4
25262526
25272527 5
25282528
25292529 6
25302530
25312531 7
25322532
25332533 8
25342534
25352535 9
25362536
25372537 10
25382538
25392539 11
25402540
25412541 12
25422542
25432543 13
25442544
25452545 14
25462546
25472547 15
25482548
25492549 16
25502550
25512551 17
25522552
25532553 18
25542554
25552555 19
25562556
25572557 20
25582558
25592559 21
25602560
25612561 22
25622562
25632563 23
25642564
25652565 24
25662566
25672567 25
25682568
25692569 26
25702570
25712571 27
25722572
25732573 28
25742574
25752575 29
25762576
25772577 representatives from health care provider organizations other than hospitals.
25782578
25792579 (c) Twenty-five percent of the members shall be representatives from organizations whose membership includes consumers of rural health care services or members of local governmental units located in rural areas.
25802580
25812581 (d) Twenty-five percent of the members shall be representatives from purchasers or payers of rural health care services.
25822582
25832583 (5) (6) A hospital designated as a rural community hospital under section 21561 shall develop and implement a transfer agreement between the rural community hospital and 1 or more appropriate referral hospitals.
25842584
25852585 Sec. 21563. (1) The department , in consultation with the ad hoc advisory committee appointed under section 21562, shall promulgate rules for designation of a rural community hospital, maximum number of beds, and the services provided by a rural community hospital. The director shall submit proposed rules, based on the recommendations of the committee, for public hearing not later than 6 months after receiving the report under section 21562(5).
25862586
25872587 (2) The designation as a rural community hospital shall must be shown on a hospital's license and shall must be for the same term as the hospital license. Except as otherwise expressly provided in this part or in rules promulgated under this section, a rural community hospital shall must be licensed and regulated in the same manner as a hospital otherwise licensed under this article. The provisions of part 222 applicable to hospitals also apply to a rural community hospital and to a hospital designated by
25882588
25892589 1
25902590
25912591 2
25922592
25932593 3
25942594
25952595 4
25962596
25972597 5
25982598
25992599 6
26002600
26012601 7
26022602
26032603 8
26042604
26052605 9
26062606
26072607 10
26082608
26092609 11
26102610
26112611 12
26122612
26132613 13
26142614
26152615 14
26162616
26172617 15
26182618
26192619 16
26202620
26212621 the department under federal law as an essential access community hospital or a rural primary care hospital. This part and the rules promulgated under this part do not preclude the establishment of differential reimbursement for rural community hospitals, essential access community hospitals, and rural primary care hospitals.
26222622
26232623 Enacting section 1. The following acts and parts of acts are repealed:
26242624
26252625 (a) Section 20143 of the public health code, 1978 PA 368, MCL 333.20143.
26262626
26272627 (b) Section 21420 of the public health code, 1978 PA 368, MCL 333.21420.
26282628
26292629 (c) Part 222 of the public health code, 1978 PA 368, MCL 333.22201 to 333.22260.
26302630
26312631 (d) Section 8t of 1945 PA 47, MCL 331.8t.
26322632
26332633 (e) Section 47 of the hospital finance authority act, 1969 PA 38, MCL 331.77.