36-425

36-425. Inspections; issuance of license;
posting of deficiencies; provisional license; denial of
license

A. On receipt of a properly completed application for initial licensure, the
director shall conduct an inspection of the health care institution as prescribed by this
chapter. If an application for an initial license is submitted due to a planned change of
ownership, the director shall determine the need for an inspection of the health care
institution. Based on the results of the inspection, the director shall either deny the
license or issue a regular or provisional license. A license issued by the department
shall be conspicuously posted in the reception area of that institution. Unless the
health care institution is an accredited hospital at the time of licensure, an initial
license is valid for one year after the date the initial license is issued. If the health
care institution is an accredited hospital at the time of licensure, the licensure term
is three years from the expiration date of the hospital's current license, or in the case
of an initial license based on a change of ownership, the licensure term is three years
beginning on the effective date of the hospital's current accreditation.

B. The director shall issue an initial license if the director determines that an
applicant and the health care institution for which the license is sought substantially
comply with the requirements of this chapter and rules adopted pursuant to this chapter
and the applicant agrees to carry out a plan acceptable to the director to eliminate any
deficiencies. The director shall not require a health care institution that was
designated as a critical access hospital to make any modifications required by this
chapter or rules adopted pursuant to this chapter in order to obtain an amended license
with the same licensed capacity the health care institution had before it was designated
as a critical access hospital if all of the following are true:

1. The health care institution has subsequently terminated its critical access
hospital designation.

2. The licensed capacity of the health care institution does not exceed its
licensed capacity prior to its designation as a critical access hospital.

3. The health care institution remains in compliance with the applicable codes and
standards that were in effect at the time the facility was originally licensed with the
higher licensed capacity.

C. On receipt of an application for a renewal of a health care institution's
license that complies with the requirements of this chapter and rules adopted pursuant to
this chapter, the department shall issue a renewal license to the health care
institution. An accredited hospital's renewal license is valid for three years after the
expiration date of the accredited hospital's current license. All other health care
institution renewal licenses are valid for one year after the expiration date of the
health care institution's current license.

D. Except as provided in section 36-424, subsection C and subsection E of this
section, the department shall conduct a compliance inspection of a health care
institution to determine compliance with this chapter and rules adopted pursuant to this
chapter at least once during each license period.

E. After the initial license period ends and after the department determines a
facility to be deficiency free on a compliance survey, the department shall not conduct a
compliance survey of that facility for twenty-four months from the date of the deficiency
free survey. This subsection does not prohibit the department from enforcing licensing
requirements as authorized by section 36-424.

F. A hospital licensed as a rural general hospital may provide intensive care
services.

G. The director shall issue a provisional license for a period of not more than one
year if an inspection or investigation of a currently licensed health care institution or
a health care institution for which an applicant is seeking initial licensure reveals
that the institution is not in substantial compliance with department licensure
requirements and the director believes that the immediate interests of the patients and
the general public are best served if the institution is given an opportunity to correct
deficiencies. The applicant or licensee shall agree to carry out a plan to eliminate
deficiencies that is acceptable to the director. The director shall not issue
consecutive provisional licenses to a single health care institution. The director shall
not issue a license to the current licensee or a successor applicant before the
expiration of the provisional license unless the health care institution submits an
application for a substantial compliance survey and is found to be in substantial
compliance. The director may issue a license only if the director determines that the
institution is in substantial compliance with the licensure requirements of the
department and this chapter. This subsection does not prevent the director from taking
action to protect the safety of patients pursuant to section 36-427.

H. Subject to the confidentiality requirements of articles 4 and 5 of this chapter,
title 12, chapter 13, article 7.1 and section 12-2235, the licensee shall keep current
department inspection reports at the health care institution. Unless federal law requires
otherwise, the licensee shall conspicuously post a notice that identifies the location at
that institution where the inspection reports are available for review.

I. A health care institution shall immediately notify the department in writing
when there is a change of the chief administrative officer specified in section 36-422,
subsection A, paragraph 7.

J. When the department issues an original license or an original provisional
license to a health care institution, it shall notify the owners and lessees of any
agricultural land within one-fourth mile of the health care institution. The health care
institution shall provide the department with the names and addresses of owners or
lessees of agricultural land within one-fourth mile of the proposed health care
institution.

K. In addition to the grounds for denial of licensure prescribed pursuant to
subsection A of this section, the director may deny a license because an applicant or
anyone in a business relationship with the applicant, including stockholders and
controlling persons, has had a license to operate a health care institution denied,
revoked or suspended or a license or certificate issued by a health profession regulatory
board pursuant to title 32 or issued by a state agency pursuant to chapter 6, article 7
or chapter 17 of this title denied, revoked or suspended or has a licensing history of
recent serious violations occurring in this state or in another state that posed a direct
risk to the life, health or safety of patients or residents.

L. In addition to the requirements of this chapter, the director may prescribe by
rule other licensure requirements and may prescribe procedures for conducting
investigations into an applicant's character and qualifications.