405 Ind. Admin. Code 1-14.7-9

Current through December 4, 2024

Section 405 IAC 1-14.7-9 - Change of ownership or structure

Authority: IC 12-15-1-10; IC 12-15-21-3

Affected: IC 4-21.5-3; IC 12-13-7-3; IC 12-15

Sec. 9.

(a) The office shall be notified within thirty (30) days of a transaction affecting the following:

(1) Ownership (operational license).

(2) Property ownership.

(3) The lessor or lessee, or both.

(4) A management company.

(5) A change in control or structure (e.g., mergers, exchange of stock, etc.).

The provider shall submit a completed checklist of management representations concerning change in ownership (checklist) to the office within thirty (30) days after the date requested by the office. The completed checklist shall include the supporting documentation to fully explain the transaction. For providers with an outstanding checklist, a field audit or desk review shall not be performed on an affected cost report, nor shall the affected cost report be used to establish reimbursement rates, as prescribed by section 12 of this rule.

(b) For transactions prior to July 1, 2023, a cost report shall be filed for the first fiscal year end after the transaction date in which the provider has at least six (6) full calendar months of actual historical data. The provider shall submit the cost report by the date identified on a change of ownership letter.

(c) For transactions beginning July 1, 2023, the following shall apply:

(1) The office shall determine the nature of the transaction.

(2) If the nature of the transaction is determined to be one (1) of the following, the fiscal period shall be determined under subdivision (3):

(A) A change:

(i) in;

(ii) to; or

(iii) from; the related party management company.

(B) A change in a privately owned or operated nursing facility's ownership (operational license), except when the seller or their related entity becomes the management company.

(3) The fiscal period shall be:

(A) from the beginning of the provider's required fiscal year through the day immediately preceding the transaction date; or

(B) from the transaction date through December 31.

(4) For a fiscal period identified in subdivision (3), a cost report shall be filed for the fiscal period that has at least six (6) full calendar months of actual historical data. The cost report is due not later than the last day of the fifth calendar month after the fiscal period, or thirty (30) days after notification by the office that the cost report shall be filed.

405 IAC 1-14.7-9

Office of the Secretary of Family and Social Services; 405 IAC 1-14.7-9; filed 8/20/2024, 9:11 a.m.: 20240918-IR-405240088FRA