Section He-E 807.12 - Substandard Quality of Care(a) In accordance with 42 CFR 488.414, when a NF has been found to have provided substandard quality of care on the last 3 consecutive surveys, the state medicaid agency shall: (1) Deny payment for all new admissions no later than 3 months from the last day of the third survey;(2) Impose state monitoring as defined in He-E 807.01 until the NF demonstrates substantial compliance with all requirements and the ability to remain in substantial compliance;(3) Notify the NF of the finding of substandard quality of care in accordance with the notification procedures in 42 CFR 488.402;(4) Notify the attending physician of each resident found to have received such care; and(5) Notify the board of nursing home administrators of the finding of substandard quality of care.(b) A change of ownership of a NF shall not restart the count of 3 consecutive surveys, unless the new owner can demonstrate at the first survey after he/she obtains ownership of the NF that the NF is in substantial compliance and that the poor past performance is no longer a factor.(c) The termination of a NF's provider agreement shall cause the count of repeated substandard quality of care surveys to start over when a new provider agreement is made for that NF.(d) All remedies in (a) shall be imposed and remain in effect until the NF demonstrates that it is in substantial compliance and is capable of remaining in substantial compliance regardless of whether: (1) The NF alleges correction of all deficiencies; or(2) The NF achieves substantial compliance before the effective date of the remedies.(e) Demonstration of the capability to remain in substantial compliance in (d) above shall mean that the result of the next survey shows that the NF is in substantial compliance.N.H. Admin. Code § He-E 807.12