OAR 411-054-0016. New Applicant Qualifications

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) 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) PERFORMANCE HISTORY. The Department shall consider an applicant's performance history, including repeat sanctions or rule violations, before issuing a license. (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. (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. (c) Failure to provide accurate information or demonstrate required performance history may result in the Department's denial of a license. (3) FINANCIAL HISTORY. Each applicant must: (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. (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. (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: (A) An unencumbered line of credit; (B) A performance bond; or (C) Any other method satisfactory to the Department. (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) EXPERIENCE. If an applicant does not have experience operating or managing an assisted living or residential care facility in Oregon, the applicant must retain the services of a Department-approved consultant or management entity with experience operating or managing an assisted living or residential care facility in Oregon. (a) The applicant must contract with a consultant or management entity at least one month before the facility is licensed. The applicant must retain the consultant or management entity for a period of at least six months from the date the initial license is issued. (b) Prior to ending the consultant or management entity services, the licensee must notify the Department, in writing, of the request to end the services. The request to terminate must be submitted at least two business days before terminating services. (A) The Department will review the request and provide a decision in writing concerning termination of the consultant or management entity services within five business days of receiving the request. Consultant or management entity services shall continue until a decision is made by the Department. The consultant or management entity, and the terms and length of engagement, are subject to the approval of the Department. (B) The Department may require the licensee to extend the duration of the period of consultation beyond six months if the Department determines, from an on-site inspection, from a review of the required monthly reports, or both, that the facility is not in substantial compliance with applicable state or federal laws, rules or regulations. (c) The facility is responsible for implementing recommendations from the consultant or management entity or taking any other appropriate alternative steps to achieve substantial compliance with applicable state or federal laws, rules or regulations. (d) If the applicant is applying for a license to operate an assisted living facility or a residential care facility with a memory care endorsement under ORS 443.886, the applicant must contract with a consultant or management entity that has experience operating or managing an assisted living facility or a residential care facility with a memory care endorsement under ORS 443.886. (e) Conversion Facilities: Subsections (a), (b), and (c) above also apply to Conversion Facilities. (f) Intensive Intervention Communities: Subsections (a), (b), and (c) above also apply to Intensive Intervention Communities. In addition, Intensive Intervention Community applicants must have history of an unencumbered license from the Department or have operated a specialized living contract with the Department.