(a) Under 42 U.S.C. § 1395i-3 and 42 U.S.C. § 1396r, a certified nursing facility:

1. (1) Is subject to federal requirements of participation; and

2. (2) Must demonstrate substantial compliance with applicable federal requirements to receive and maintain certification necessary to participate in:

   1. (A) Medicaid;
   2. (B) Medicare; or
   3. (C) Both.

(b) As required under Arkansas Code § 20-10-1402(d)(2), Department of Human Services rules applicable to certified nursing facilities:

1. (1) Apply to conditions and processes of state licensure; and
2. (2) May not exceed or duplicate federal requirements of participation, including staffing and data reporting requirements, except average direct care hours per resident day requirements under Arkansas Code § 20-10-1402(a)(2) and (b).