MI HB6145

Applicants for certificates of need to acquire, operate, or expand licensed nursing home bed capacity must furnish a surety bond to the State of Michigan, with exemption for county medical care facilities.

Surety bond amount must equal the total cost to acquire or operate the nursing home or change bed capacity, with minimum of $25,000 and maximum of $250,000, as determined by the department.

Department may accept alternative forms of security including cash deposits, securities, letters of credit, or assignment of other bond coverage if comparable or more extensive coverage results.

Department may demand payment or draw upon the bond if the nursing home discontinues operations, a receiver is appointed, or a temporary manager is appointed under specified provisions of the Public Health Code.

Surety bond or alternative security must remain in effect before issuance or renewal of a nursing home license under Part 217 of the Public Health Code.