SB 406 Summary

• Restructures the certificate of need (CON) requirements for nursing homes by eliminating the CON requirement for ownership transfers and limiting CON applications to: new facilities, service terminations, facility closures, changes in licensed bed capacity, and capital expenditures exceeding $2 million.

• Maintains a moratorium through June 30, 2016 on approving additional nursing home beds except for specific categories including AIDS/traumatic brain injury patients, continuing care facilities, bed relocations, religious facilities, and hospice care facilities.

• Streamlines the application process by requiring a letter of intent filed 10 business days before the formal CON application, with a 180-day validity period and automatic withdrawal if applicants fail to respond to department requests within 180 days.

• Requires public notice and hearings for facility closures (unless occupancy is 75% or below licensed capacity) and allows expedited review for facilities below occupancy thresholds or for residential care homes.

• Revises continuing care facility regulations to remove certain financial restrictions, simplify reserve fund and escrow requirements, and allow continuing care facilities to accept nonresident patients on a contractual basis for up to seven years with commissioner-authorized extensions.