1. (a) This section does not apply to a health facility that:

   1. (1) does not require the investment of money or the payment of money or other consideration for admission; and
   2. (2) only charges daily or monthly rates for room, board, and care.

2. (b) A health facility may be licensed or relicensed under this chapter only if a disclosure statement is filed with the director at the time of application on forms provided by the director that contains the following information:

   1. (1) Whether the health facility is affiliated with a religious, charitable, or other nonprofit organization.
   2. (2) The nature and extent of the affiliation, if any, including the extent to which the affiliated organization is responsible for the financial and contractual obligations of the health facility.
3. (c) The health facility shall deliver a copy of the current disclosure statement on file with the director as provided by subsection (b) to each prospective resident.

4. (d) If a health facility is affiliated with a religious, charitable, or other nonprofit organization, the health facility must include in the health facility's advertisements and solicitations a summary statement disclosing the following:

   1. (1) The affiliation between the health facility and the religious, charitable, or other nonprofit organization.
   2. (2) The extent to which the affiliated organization is responsible for the financial and contractual obligations of the health facility.

5. (e) If a health facility is not affiliated with a religious, charitable, or other nonprofit organization but the name of the health facility or the person operating the health facility implies an affiliation, the health facility must include in all the health facility's advertisements and solicitations a summary statement disclosing the following:

   1. (1) That the health facility is not affiliated with a religious, charitable, or other nonprofit organization.
   2. (2) That no religious, charitable, or other nonprofit organization is responsible for the financial or contractual obligations of the health facility.

6. (f) Whenever there is a change in the affiliation of the health facility with a religious, charitable, or other nonprofit organization, including a change in the extent, if any, to which the affiliated organization is responsible for the financial and contractual obligations of the health facility, the health facility shall amend:

   1. (1) the health facility's disclosure statement on file with the director as required by subsection (b); and

   2. (2) the summary statement included in the health facility's advertisements and solicitations as required by subsections (d) and (e);

      if an amendment is necessary to prevent the statement from containing any misstatement of fact or omission to state a material fact required to be stated.

      [Pre-1993 Recodification Citation: 16-10-4-13.]

As added by P.L.2-1993, SEC.11.