For the purpose of this rule, "applicant" means each entity, as defined in OAR 411-054-0005, who holds 10 percent or more incident of ownership in the applicant as described in OAR 411-054-0013(1)(b). For those who serve the Medicaid population, "applicant" means each entity, as defined in OAR 411-054-0005, who holds 5 percent or more incident of ownership regardless of the individual's effect on the operation of the facility. Applicants for licensure (excluding license renewal, but including all conversion facilities, changes of ownership, management, or operator) must meet the following criteria:

1. (1) BACKGROUND CHECK. Each applicant may not have convictions of any of the crimes listed in OAR 407-007-0275 and must complete a background check conducted by the Department in accordance with OAR 407-007-0200 to 407-007-0370.

2. (2) PERFORMANCE HISTORY. The Department shall consider an applicant's performance history, including repeat sanctions or rule violations, before issuing a license.

   1. (a) Each applicant must be free of incident of ownership history in any facility in Oregon that provides or provided (at the time of ownership) care to children, elderly, ill, or individuals with disabilities that had its license or certification involuntarily suspended or voluntarily terminated during any state or federal sanction process during the past five years.
   2. (b) Applicants must be free of incident of ownership history in any facility in any state that had its license or certification involuntarily suspended or voluntarily terminated during any state or federal sanction process during the past five years.
   3. (c) Failure to provide accurate information or demonstrate required performance history may result in the Department's denial of a license.

3. (3) FINANCIAL HISTORY. Each applicant must:

   1. (a) Be free of incident of ownership history in any facility or business that failed to reimburse any state for Medicaid overpayments or civil penalties during the past five years.
   2. (b) Be free of incident of ownership history in any facility or business that failed to compensate employees or pay worker's compensation, food supplies, utilities, or other costs necessary for facility operation during the past five years.

   3. (c) Submit proof of fiscal responsibility, including an auditor's certified financial statement, and other verifiable documentary evidence of fiscal solvency documenting that the prospective licensee has sufficient resources to operate the facility for 60 days. Proof of fiscal responsibility must include liquid assets sufficient to operate the facility for 45 days. Anticipated Medicaid income is not considered "liquid assets," but may be considered "financial resources." Liquid assets may be demonstrated by:

      1. (A) An unencumbered line of credit;
      2. (B) A performance bond; or
      3. (C) Any other method satisfactory to the Department.
   4. (d) Provide a pro forma (revenues, expenditures, and resident days) by month for the first 12 months of operation of the facility and demonstrate the ability to cover any cash flow problems identified by the pro forma.

4. (4) EXPERIENCE. If an applicant does not have experience in the management of assisted living or residential care facilities in Oregon, the applicant must employ the services of a consultant or management company with experience in the provision of assisted living or residential care for a period of at least six months of operation. The consultant, and the terms and length of employment, are subject to the approval of the Department.

   1. (a) Conversion Facilities: Unless the applicant has a history of managing an ALF or RCF, a contracted consultant with experience providing residential care must be retained by a CF for six months of operation.
   2. (b) Intensive Intervention Communities: IIC applicants must have history of an unencumbered license from the Department or have operated a specialized living contract with the Department.

Statutory/Other Authority

ORS 410.070 & 443.450

Statutes/Other Implemented

ORS 443.400 - 443.455 & 443.991

History

APD 19-2018, amend filed 06/29/2018, effective 06/29/2018
APD 35-2017, temporary amend filed 12/30/2017, effective 01/01/2018 through 06/29/2018
SPD 11-2012, f. 8-31-12, cert. ef. 9-1-12
SPD 4-2012, f. 4-30-12, cert. ef. 5-1-12
SPD 23-2011(Temp), f. & cert. ef. 11-10-11 thru 5-7-12
SPD 10-2010, f. 6-30-10, cert. ef. 7-1-10
SPD 23-2009(Temp), f. 12-31-09, cert. ef. 1-1-10 thru 6-30-10
SPD 14-2007, f. 8-31-07, cert. ef. 11-1-07