The Arkansas Health Services Permit Commission and the Arkansas Health Services Permit Agency amend their rules, policies, and procedures in relation to applications for long-term care facilities as follows:

1. (1) Continuing care providers, as established by the General Assembly and codified in the Continuing Care Provider Regulation Act, Arkansas Code §§ 23-93-101 – 23-93-114 and regulated by the Commissioner of the State Insurance Department, shall be governed by the statutory and regulatory provisions relating to applications for long-term care facilities; and

2. (2) Continuing care "life care providers", as established by the Arkansas General Assembly and codified in Arkansas Code § 23-93-201 et seq., regulated by the Commissioner of the State Insurance Department and requiring no additional charges for nursing care or personal care services beyond those charged all residents of the facility who are not receiving nursing care or personal care services, shall be governed by statutory and regulatory provisions relating to applications for long-term care facilities, except:

   1. (A) After issuance of a license by the State Insurance Department as a life care provider, the life care provider may apply for a permit of approval for a nursing facility based on one (1) bed per ten (10) constructed, licensed units occupied by bona fide residents upon a signed agreement that no individual will be directly admitted to the nursing facility who has not been a bona fide resident of the life care provider;

   2. (B)

      1. (i)

         1. (a) (a) Additional beds for the life care provider nursing facility may be requested on an annual basis, provided it is in compliance with and has a current license from the State Insurance Department and the Office of Long-Term Care, based on one (1) bed per additional ten (10) constructed, licensed units occupied by bona fide residents of the life care provider which have been constructed, licensed, and occupied by bona fide residents and in existence for at least twelve (12) months from the last application under this subdivision, and based on the occupancy of the nursing facility during the previous twelve (12) months, requiring the previous twelve (12) months, until the nursing facility reaches a total of seventy (70) beds, and provided no individual has been admitted to the nursing facility who had not been a bona fide resident of the life care provider.
         2. (b) (b) The life care provider shall furnish the agency all information requested to substantiate the application.

      2. (ii)

         1. (a) (a) Additional beds for the life care provider nursing facility may be requested on an annual basis, if no new constructed, licensed units have been added to the life care provider, based on the utilization of the nursing facility during the previous twelve (12) months, requiring seventy percent (70%) occupancy over the previous twelve (12) months, and shall entitle the life care provider, provided it is in compliance with and has a current license from the State Insurance Department and the office, to an additional ten (10) beds, or ten percent (10%), whichever is greater, until the nursing facility reaches a total of seventy (70) beds, provided no individual has been directly admitted to the nursing facility who has not been a bona fide resident of the life care provider.
         2. (b) (b) The life care provider shall furnish the agency all information requested to substantiate the application.
      3. (iii) Only one (1) of these methods may be used in a calendar year;

   3. (C)

      1. (i) Should the life care provider's license be revoked by the State Insurance Department, this commission shall recommend to the office that the nursing facility lose its license to own and operate a nursing facility.
      2. (ii) Should a life care provider nursing facility directly admit residents who have not been bona fide residents of the life care provider to the nursing facility, the life care provider shall not be allowed to apply for new beds for a total of five (5) years; and

   4. (D)

      1. (i) The nursing facility or beds of a life care provider shall not be sold or transferred to any other entity.
      2. (ii) Any sale or transfer shall automatically forfeit the license of the facility or beds and bar the life care provider from applying for additional beds for ten (10) years.

Codification Notes: The title of this section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Lifecare Nursing Facility (10/02)"