(a) As a condition of licensure by the Department of Human Services, a nursing facility, except a private pay-only nursing facility, shall be certified to participate in:

1. (1) The federal Medicare program as a skilled nursing facility;
2. (2) The Arkansas Medicaid program as a nursing facility; or
3. (3) Both.

(b) As a condition of licensure by the department, a private pay-only nursing facility shall:

1. (1) Comply with all state requirements applicable to a private pay-only nursing facility, including rules promulgated by the department; and

2. (2) Cooperate with department:

   1. (A) Audits;
   2. (B) Inspections; and
   3. (C) Document requests.