June 19, 2008, Introduced by Reps. Donigan, Miller, Angerer, Vagnozzi, Coulouris, Simpson, Robert Jones, Valentine, Bennett, Constan, Ebli, Clack, Bauer, Leland, Polidori, Corriveau and Dean and referred to the Committee on Senior Health, Security, and Retirement.
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 $1,000,000.00 per occurrence. 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 subsection "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. 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.