Application, issuance, and renewal of license

An entity meeting the definition of home health agency in North Dakota Century Code section 23-17.3-01 must obtain a license from the department to operate in North Dakota. A person or entity may not establish or operate an agency or use the terms home health agency or home health services without first having obtained a license. 1. Any person or entity who desires to maintain and operate an agency shall apply to the department for a license in the form prescribed and shall obtain an initial license before accepting patients for care or treatment. a. The department shall not approve an application for initial license unless: (1) The application and all required attachments and statements submitted by the applicant meet the requirements of this chapter. A description of all services provided and the geographic areas to be served by agency staff must be included. (2) The department has conducted an inspection or investigation of the agency to determine compliance with this chapter. (3) The department has completed an investigation into the fitness of the applicant and determined the applicant to be fit based on the following: (a) Evidence provided by the applicant which identifies that financial resources and sources of revenue for the applicant's agency appear adequate to provide the staff and services sufficient to comply with North Dakota Century Code chapter 23-17.3 and this chapter; (b) The applicant has furnished the department with a signed and notarized statement describing and dating every proceeding, within five years of the date of application, in which the applicant was involved which resulted in a limitation, suspension, revocation, or refusal to grant or renew an agency license or a Medicare or Medicaid decertification action; and (c) The applicant shall furnish a signed and notarized statement to the department describing every criminal proceeding within five years of the date of the application in which the licensee or any of its shareholders owning interest of five percent or more officers, directors, partners, or other controlling or managing persons, has been convicted or nolo contendere plea accepted, of a criminal offense related to the operation or ownership of an agency. b. The initial license is valid for a period not to exceed one year and expires on December thirty-first of the year issued. 2. The department shall issue a renewal license when an agency is in compliance with the provisions of these licensing requirements, as determined by periodic unannounced onsite surveys conducted by the department and other information submitted by the agency upon the request of the department. Renewal licenses shall expire on December thirty-first of each year. The application for renewal must be received by the department with sufficient time to process prior to the beginning of the licensure period. 3. In the case of an agency or operators of a preexisting agency which has had its license suspended or revoked or denied, the applicant shall submit with the request for relicensure sufficient justification to indicate the reasons for the suspension, revocation, or denial no longer exist, reasonable assurance that they will not recur, and evidence that all licensure requirements are met. 4. The department shall require an applicant or licensee to disclose the name, address, and official position of all persons who have a five percent or more ownership interest in the agency. 5. The department may issue a provisional license, valid for a specific period of time not to exceed ninety days. A provisional license may be issued when the department has determined there are one or more serious deficiencies or a pattern of repeat deficiencies related to compliance with these licensing requirements. a. A provisional license may be renewed at the discretion of the department, provided the licensee demonstrates to the department that it has made progress towards compliance and can effect compliance within the next ninety days. A provisional license may be renewed one time. b. When an agency operating under a provisional license notifies the department that it has corrected its deficiencies, the department will ascertain correction. Upon finding compliance, the department shall issue a renewal license. 6. When a subdivision of an agency, for example, the home care department of a hospital, applies for a license, the subdivision rather than the parent organization must be licensed as an agency and maintain records in such a way that subdivision activities and expenditures attributable to services provided are identifiable. The parent organization may determine who signs the agreement and other documents and receive and disburse funds. 7. If one or more branch offices are operated under the same management, the branch offices will be licensed under the parent agency's license. 8. Each license is valid only in the hands of the entity to whom it is issued and is not subject to sale, assignment, or other transfer, voluntary or involuntary, nor is a license valid for any agency other than those for which originally issued. The license must be displayed in a conspicuous place within the agency. 9. The agency shall notify the department in writing at least thirty days in advance of any of the following changes: a. Transfer or change of ownership. b. Transfer of operating rights, including a lease of the agency where the lessor retains no control of the operation or management of the agency. c. Change in the name of the agency. d. A service is added or deleted. e. A change in the geographic area served. 10. The agency shall notify the department in writing within thirty days of a change in administrative staff as identified on the annual licensure application or the nurse executive. 11. Upon discontinuance of the operation or transfer of ownership of an agency, the license must be returned to the department. 12. Existing agencies subject to this chapter which are already in operation on January 1, 1998, will be given a reasonable time, not to exceed May 1, 1998, within which to comply with the rules, regulations, and standards provided for herein.