LAC 48:I.9307. Cessation of Business

A. Except as provided in §9308.A-C.9 of these licensing regulations, a license shall be immediately null and void if a hospital ceases to operate. B. A cessation of business is deemed to be effective with the date on which the hospital stopped providing services to the community. C. Upon the cessation of business, the hospital shall immediately return the original license to the department. D. Cessation of business is deemed to be a voluntary action on the part of the hospital. The hospital does not have the right to appeal a cessation of business. E. The hospital shall notify the department in writing 30 days prior to the effective date of the closure or cessation. In addition to the notice, the hospital shall submit a written plan for the disposition of patient medical records for approval by the department. The plan shall include the following: 1. the effective date of the closure; 2. provisions that comply with federal and state laws on storage, maintenance, access, and confidentiality of the closed provider’s patient medical records; and 3. appointed custodian(s) who shall provide the following: a. access to records and copies of records to the patient or authorized representative, upon presentation of proper authorization(s); and b. physical and environmental security that protects the records against fire, water, intrusion, unauthorized access, loss, and destruction; 4. public notice regarding access to records, in the newspaper with the largest circulation in close proximity to the closing provider, at least 15 days prior to the effective date of closure. F. If a hospital fails to follow these procedures, the owners, managers, officers, directors, and administrators may be prohibited from opening, managing, directing, operating, or owning a hospital for a period of two years. G. Once the hospital has ceased doing business, the hospital shall not provide services until the hospital has obtained a new initial license.