Md. Code Regs. 32.02.02.11 - Application for Renewal Certificate of Registration

A. The provider shall file an application for a renewal certificate of registration within 120 days of the end of the provider's fiscal year on a form provided by the Department.

B. A renewal certificate of registration shall be issued for 1 year, which is in effect from 6 months after the end of the provider's most recent fiscal year to 6 months after the close of the provider's current fiscal year.

C. The application for a renewal certificate of registration shall include the following information and attachments:

(1) Any changes or additions to the information submitted on the most recent application;

(2) An original certified financial statement for the preceding fiscal year prepared in accordance with generally accepted accounting principles, which include the principles expressed in the American Institute of Certified Public Accounts' "Audit and Accounting Guide for Health Care Organizations";

(3) All exhibits or attachments to the certified financial statements, including:

(a) A balance sheet,

(b) An income statement,

(c) A statement of cash flows,

(d) The related notes to the financial statements, and

(e) The opinion of an independent certified public accountant;

(4) An operating budget for the current fiscal year prepared in accordance with generally accepted accounting principles;

(5) A projection of the life expectancy and the number of subscribers who will require care in an assisted living or nursing home facility;

(6) A projected operating budget for the next succeeding fiscal year prepared in accordance with generally accepted accounting principles;

(7) An actuarial opinion that meets the requirements of Regulation .14F and G of this chapter;

(8) A copy of any new continuing care at home agreement proposed for implementation in the succeeding year, and a demonstration of how the proposed agreement differs from current agreements in use;

(9) A description of the arrangements that have been made to obtain the personnel and services necessary to continue providing continuing care at home;

(10) A copy of each current license and certificate, if any, required to be issued by DHMH;

(11) A copy of the provider's most recent certificate of need, if any, required to be issued by MHCC;

(12) The form and substance of any advertising campaign or proposed advertisement and other promotional materials not previously filed with the Department;

(13) A renewal fee equal to the greater of $5,000 or $18 per subscriber enrolled at the end of the provider's previous fiscal year;

(14) A cash flow projection for the current fiscal year and the next 2 fiscal years prepared in accordance with generally accepted accounting principles;

(15) A statement that provides the dates of the meetings held the previous year to comply with Regulation .13 of this chapter;

(16) A copy of the disclosure statement prepared in accordance with Regulation .15 of this chapter; and

(17) A statement that indicates compliance with the operating reserve requirement in Regulation .14 of this chapter.

D. Actuarial Study.

(1) Every 3 years after beginning continuing care at home operations, a provider shall submit an actuarial study, including an actuarial balance sheet, prepared or reviewed by a qualified actuary, which:

(a) Demonstrates that the resources available for current and replacement subscribers, including the actuarial present value of periodic fees expected to be paid in the future by present subscribers, are equal to the actuarial present value of the expected costs of performing all remaining obligations to the subscribers under the subscribers' agreements, with appropriate provision for surplus;

(b) Includes cash flow statements for 20 years which demonstrate that cash balances are projected to remain positive;

(c) Includes a statement of the opinion of a qualified actuary as to whether:

(i) The data and assumptions used are appropriate,

(ii) The methods employed are consistent with sound actuarial principles and practices, and

(iii) Provision has been made for all actuarial liabilities and related statement items; and

(d) Includes supporting detailed documentation for the actuarial balance sheet including a projection of future population flows and service needs covered by the provider's agreements for 20 years, which projection shall use appropriate inflation factors, mortality, morbidity, withdrawal, and other demographic assumptions.

(2) The Department may request the information required in §D(1) of this regulation more frequently to assist in the determination of possible financial difficulty as provided in Regulation .20 of this chapter.

E. If the materials required in §C of this regulation are not received in the Department within 120 days after the end of the provider's fiscal year, the Department shall charge a late fee equal to the greater of $1,000 or $10 per subscriber. The late fee shall be in addition to the renewal fee per subscriber, unless a written request for an extension is submitted to and approved by the Department within the 120-day period.

F. The Department may issue a provisional renewal certificate of registration for a period not to exceed 6 months, if a provider is found to be in possible financial difficulty as defined in Regulation .01 of this chapter, or subject to Regulation .20 of this chapter. The provisional certificate of registration may be renewed for additional periods, each period not to exceed 6 months, at the discretion of the Department.

G. Failure to file the annual renewal application or obtain an extension within 120 days after the end of a fiscal year is a violation of the Act and this chapter.

Notes

Md. Code Regs. 32.02.02.11

Regulation .11C amended effective March 1, 2004 (31:4 Md. R. 319)