HB-6261, As Passed House, September 17, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6261

     A bill to amend 1978 PA 368, entitled

"Public health code,"

by amending sections 21743, 21755, 21757, and 21782 (MCL 333.21743,

333.21755, 333.21757, and 333.21782) and by adding section 21714.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 21714. (1) Beginning October 1, 2008, a person shall not

establish, operate, or maintain a nursing home unless proof of

liability insurance coverage on that nursing home is maintained in

an amount not less than $500,000.00 per occurrence. A nursing home

that is a county medical care facility is not required to maintain

liability insurance as required in this section. An applicant or

licensee under this part shall include proof of liability insurance

coverage as required in this section in its application for a

license or license renewal under section 20142.

     (2) As used in this section, "liability insurance" means

insurance on risks based upon neglect of a resident for which a

licensee is or may be responsible.

     Sec. 21743. (1) In addition to public records subject to

disclosure under section 20175, the following information is

subject to disclosure from the department of public community

health or the department of social human services:

     (a) Ownership of nursing homes, ownership of buildings

occupied by nursing homes, and the names and addresses of suppliers

and the ownership of suppliers of goods and services to nursing

homes required to be reported under section 20142.

     (b) Records of license and certification inspections, surveys,

and evaluations of nursing homes, other reports of inspections,

surveys, and evaluations of patient care, and reports concerning a

nursing home prepared pursuant to titles 18 XVIII and 19 XIX of the

social security act, 42 U.S.C. USC 1395 to 1396k 1396v.

     (c) Cost and reimbursement reports submitted by a nursing

home, reports of audits of nursing homes, and other public records

concerning costs incurred by, revenues received by, and

reimbursement of nursing homes.

     (d) Complaints filed against a nursing home and complaint

investigation reports. A complaint or complaint investigation

report shall not be disclosed to a person other than the

complainant or complainant's representative before it is disclosed

to a nursing home under section 21799a and a complainant's or

patient's name shall not be disclosed except as provided in section

21799a.

     (e) Proof of liability insurance coverage as required in

section 21714.

     (2) The department of public community health, the department

of social human services, and the nursing home shall respect the

confidentiality of a patient's clinical record as provided in

section 20175 and shall not divulge or disclose the contents of a

record in a manner which that identifies a patient, except upon a

patient's death to a relative or guardian, or under judicial

proceedings. This subsection shall does not be construed to limit

the right of a patient or a patient's representative to inspect or

copy the patient's clinical record.

     (3) Confidential medical, social, personal, or financial

information identifying a patient shall not be available for public

inspection in a manner which identifies a patient.

     Sec. 21755. (1) The department may refuse to issue a license

to establish or maintain and operate, or both, a nursing home to an

applicant:

     (a) Whose occupational, professional, or health agency license

has been revoked during the 5 years preceding the date of

application.

     (b) Whom the department finds is not suitable to operate a

nursing home because of financial incapacity or a lack of good

moral character or appropriate business or professional experience.

As used in this subdivision, "good moral character" means that term

as defined in Act No. 381 of the Public Acts of 1974, as amended,

being sections 338.41 to 338.47 of the Michigan Compiled Laws

section 1 of 1974 PA 381, MCL 338.41.

     (2) The department shall refuse to issue a license to

establish or maintain and operate, or both, a nursing home to an

applicant or licensee who does not maintain liability insurance

coverage as required in section 21714.

     Sec. 21757. (1) The department may issue a 1-year provisional

license, renewable for not more than 1 additional year, to an

applicant whose services are needed in the community but who is

temporarily unable to comply with the rules related to the physical

plant of the facilities, excluding maintenance problems. At the

time a provisional license is granted, specific deadlines for the

correction of each physical plant violation shall be established.

     (2) A The department shall not issue a provisional license

shall not be issued for in any of the following circumstances:

     (a) For a nursing home constructed, established, or changing

corporate ownership or management after the effective date of this

section March 30, 1979 unless it is shown that unusual hardship

would result to the public or to the applicant for the provisional

license and the nursing home was licensed and operating under a

prior licensing act for not less than 5 years.

     (b) For a nursing home that does not have liability insurance

coverage as required in section 21714.

     Sec. 21782. A licensee shall retain for public inspection:

     (a) A complete copy of each inspection report of the nursing

home received from the department during the past 5 years.

     (b) A copy of each notice of a hearing or order pertaining to

the nursing home issued by the department or a court under the

authority of this article or rules promulgated under this article

after the effective date of this section March 30, 1979. The copy

of the notice or order shall be retained for not less than 3 years

after its date of issuance or not less than 3 years after the date

of the resolution of the subject matter of the notice or order,

whichever is later.

     (c) A description of the services provided by the nursing home

and the rates charged for those services and items for which a

patient may be separately charged.

     (d) A list of the name, address, principal occupation, and

official position of each person who, as a stockholder or

otherwise, has a proprietary interest in the nursing home as

required by section 20142, of each officer and director of a

nursing home which is a corporation, and of each trustee or

beneficiary of a nursing home which is a trust.

     (e) A list of licensed personnel employed or retained by the

nursing home.

     (f) A copy of the standard form contract utilized under

section 21766.

     (g) A copy of the proof of liability insurance coverage as

required in section 21714.