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007.05.10-4. Licensure and Codes.

AR ADC 007.05.10-4Arkansas Administrative CodeEffective: June 20, 2022

West's Arkansas Administrative Code
Title 007. Department of Health
Division 05. Health Facility Services
Rule 10. Rules for Critical Access Hospitals in Arkansas (Refs & Annos)
Effective: June 20, 2022
Ark. Admin. Code 007.05.10-4
007.05.10-4. Licensure and Codes.
A. License required. No general hospital or distinct part, critical access hospital or distinct part, recuperation center or distinct part, infirmary, rehabilitation facility or distinct part, outpatient surgery center, or alcohol/drug abuse inpatient treatment center, psychiatric hospital or distinct part, outpatient psychiatric center or emergency services facility may be established, conducted, or maintained in the State without first obtaining a license.
B. Exceptions to license requirement. The following facilities do not require a license from the Department:
1. A facility operated by the Federal Government; and
2. A First Aid Station.
C. Basic services required. Every licensed hospital must provide basic services.
D. Application for License.
1. An applicant shall file applications under oath with the Department upon forms provided by Health Facility Services and shall pay annual license fee as indicated by Act 574 of 1997.
2. These fees shall be paid into the State Treasury or refunded to the applicant if a license is denied. The application shall be signed by the owner, if an individual or partnership, or in the case of a corporation, by two of its officers, or in the case of a governmental unit, by the head of the governmental department having jurisdiction over it. The application shall set forth the full name and address of the institution for which license is sought and such additional information as the Department may require, including affirmative evidence of ability to comply with such reasonable standards, rules, and regulations as may be lawfully prescribed hereunder. The application for annual license renewal shall be postmarked no later than January 2 of the year for which the license is issued. The license applicant for an existing institution postmarked after the date shall be subject to a penalty of one dollar per day for each day and every day after January 2.
3. A license issued hereunder shall be effective on a calendar year basis and shall expire on December 31 of each calendar year. A license shall be issued only for the premises and persons in the application, and shall not be transferable. If the facility changes ownership the license shall expire. The license shall be posted in a conspicuous place on the licensed premises. A license issued under previous regulations shall be effective through the period for which it was issued. The adequacy of cooperative agreements between hospitals in terms of service provided by each hospital and the type of licenses issued to each hospital shall be determined by the Arkansas Department of Health.
E. Facility Change of Ownership.
1. It shall be the responsibility of the licensed entity to notify Health Facility Services in writing at least 30 days prior to the effective date of change of ownership.
2. The following information shall be submitted to Health Facility Services for review and approval:
a. License application;
b. Request for Medicare Certification (where applicable);
c. Legal documents, ownership agreements, the license previously issued to the facility, and other information to support relicensure requirements; and
d. Licensure fee as indicated by Act 574 of 1997.
3. For the purpose of these rules the licensed entity is the party ultimately responsible for operating the facility. The same entity also bears the final responsibility in decisions made in the capacity of a Governing Body, and for the consequences of these decisions.
F. Facility Name Change and/or Address.
1. The facility shall notify Health Facility Services of any name and/or address change;
2. The previously issued license shall be returned to Health Facility Services; and
3. A fee, as indicated in Act 574 of 1997, shall be submitted to Health Facility Services for issuance of a new license.
G. Management Contract.
1. It shall be the responsibility of the licensed entity to notify Health Facility Services in writing at least 30 days prior to entering into a management contract or agreement with an organization or firm. A copy of the contract or agreement shall also be submitted to Health Facility Services for review to assure the arrangement does not materially affect the license status.
2. An organization or firm who contracts with the licensed entity to manage the health care facility, subject to Governing Body approval of operational decisions, is generally considered an agent rather than an owner. In such instances a licensure change is not required.
H. Separate License. An individual license shall be required for an institution maintained on separate premises even though it is operated under the same management, except in cases where the hospital management of a general hospital operates a detached building which can be utilized in a limited way for general medical care. Separate licenses are not required for separate buildings on the same grounds.
I. Temporary Licenses. This license shall be for less than one year and for a time specified on the temporary license by the Department.
J. Revocation of License. The Department is empowered to deny, suspend, or revoke a license on any of the following grounds:
1. Violation of any of the provisions of Act 414 of 1961, as amended by Act 258 of 1971, or Act 190 of 1975, Act 536 of 1977, or Act 273 of 1983, Act 980 of 1985, or Act 516 of 1987; Act 143 of 1987, Act 399 of 1987, or Act 348 of 1987, or the Rules and Regulations lawfully promulgated hereunder; or
2. Permitting, aiding, or abetting the commission of any unlawful act in connection with the operation of the institution. (Section 22, Act 414 of 1961, as amended).
3. The right of appeal of any revocation shall be as specified in the appeal procedure of the Arkansas Department of Health.
NOTE: If services are to be temporarily suspended, a functional program, with plans and specifications as applicable, shall be submitted to Health Facility Services for approval prior to such suspension.
K. Inspection. Any authorized representative of the Department shall have the right to enter the premises of any institution at any time in order to make whatever inspection necessary in accordance with the minimum standards and rules prescribed herein.
L. CMS Waivers. When CMS declares a public health emergency (PHE) with the implementation of waivers which applies to Arkansas, ADH may consider implementing similar waivers. If implemented, the waiver request and authorization may vary based on the type of PHE and CMS requirements.
M. Penalties.
1. Any person, partnership, association, or corporation which establishes, conducts, manages, or operates any institution within the meaning of Act 414 of 1961, as amended by Act 258 of 1971, Act 190 of 1975, Act 536 of 1977, Act 273 of 1983, Act 980 of 1985, And Act 516 of 1987; and Act 143 of 1987, Act 348 of 1987, and Act 399 of 1987, without first obtaining a license therefore as herein provided, or who violates any portion of this act or regulations lawfully promulgated hereunder, shall be guilty of a misdemeanor, and upon conviction thereof shall be liable to a fine of not less than $25.00 nor more than $100.00 for the first offense and not less than One Hundred Dollars 100.00), nor more than $500.00 for each subsequent offense, and each day such institution operates after a first conviction shall be considered a subsequent offense. (Ark. Code Ann. § 20-9-202.)
2. Any institution licensed by the authority of these rules that has received damage due to fire, tornado, earthquake, man-made or natural disaster shall notify the Department by telephone immediately and follow with a preliminary report within 48 hours, and a complete report when the incident has been thoroughly investigated. The submitted report shall include, but not be limited to, damage to the building, damage estimates, injuries to patients, staff and the public, etc. If the Department is not notified, the institution shall be assessed a fine in the amount of $50.00 for each day, or portion thereof, the incident is not reported or $500.00 maximum.
N. Codes. See Section 43, Physical Facilities, List of Referenced Publications.

Credits

Amended Jan. 1, 2016; Feb. 5, 2021; June 20, 2022.
<Statutory authority: Promulgated under the Authority of Ark. Code Ann. § 20-7-123, 20-9-201 et seq.>
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 007.05.10-4, AR ADC 007.05.10-4
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