HB 753

1	A bill to be entitled
2	An act relating to long-term care; amending s. 400.141,
3	F.S.; requiring licensed nursing home facilities to
4	satisfy specified financial responsibilities; creating s.
5	400.1411, F.S.; requiring maintenance of financial
6	responsibility as a condition of licensure of nursing home
7	facilities; providing for payment of any outstanding
8	judgments or settlements pending when a nursing home
9	facility license is suspended by the Agency for Health
10	Care Administration; providing conditions for suspension
11	of a nursing home facility license; requiring the agency
12	to adopt rules; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Subsection (20) of section 400.141, Florida
17	Statutes, is amended to read:
18	400.141  Administration and management of nursing home
19	facilities.--Every licensed facility shall comply with all
20	applicable standards and rules of the agency and shall:
21	(20)  Satisfy the financial responsibility requirements of
22	s. 400.1411. The required financial responsibility shall not be
23	used for litigation costs or attorney's fees for the defense of
24	any claim against a nursing home pursuant to common law or s.
25	400.023 or s. 400.0233. Maintain general and professional
26	liability insurance coverage that is in force at all times. In
27	lieu of satisfying the financial responsibility requirements of
28	s. 400.1411 general and professional liability insurance
29	coverage, a state-designated teaching nursing home and its
30	affiliated assisted living facilities created under s. 430.80
31	may demonstrate proof of financial responsibility as provided in
32	s. 430.80(3)(h).
33
34	Facilities that have been awarded a Gold Seal under the program
35	established in s. 400.235 may develop a plan to provide
36	certified nursing assistant training as prescribed by federal
37	regulations and state rules and may apply to the agency for
38	approval of their program.
39	Section 2.  Section 400.1411, Florida Statutes, is created
40	to read:
41	400.1411  Financial responsibility.--
42	(1)  As a condition of licensure and to maintain an active
43	license, and prior to the issuance or renewal of an active
44	license or reactivation of an inactive license for operating a
45	nursing home facility in the state, an applicant must
46	demonstrate to the satisfaction of the agency and the Office of
47	Insurance Regulation of the Financial Services Commission
48	financial responsibility to pay claims and costs ancillary
49	thereto arising out of the rendering of, or the failure to
50	render, care or services by one of the following methods:
51	(a)  Establishing and maintaining an escrow account
52	consisting of cash or assets eligible for deposit in accordance
53	with s. 625.52 in the per claim amounts specified in paragraph
54	(b);
55	(b)  Obtaining and maintaining general and professional
56	liability coverage in an amount not less than $500,000 per
57	claim, with a minimum annual aggregate of not less than $1
58	million, from an authorized insurer as defined under s. 624.09,
59	from an eligible surplus lines insurer as defined under s.
60	626.914(2), or from a Florida domiciled risk retention group as
61	defined under s. 627.942(9); or
62	(c)  Obtaining and maintaining an unexpired, irrevocable
63	letter of credit, established pursuant to chapter 675, in an
64	amount not less than $500,000 per claim, with a minimum
65	aggregate availability of credit not less than $1 million. The
66	letter of credit must be payable to the nursing home facility as
67	beneficiary upon presentment of a final judgment indicating
68	liability and awarding damages to be paid by the nursing home
69	facility or upon presentment of a settlement agreement signed by
70	all parties to such agreement when such final judgment or
71	settlement is a result of a claim arising out of the rendering
72	of, or the failure to render, care and services. The letter of
73	credit must be nonassignable and nontransferable. Such letter of
74	credit must be issued by any bank or savings association
75	organized and existing under the laws of this state or under the
76	laws of the United States that has its principal place of
77	business in this state or has a branch office that is authorized
78	under the laws of this state or of the United States to receive
79	deposits in this state.
80	(2)(a)  Each insurer, self-insurer, or risk retention group
81	must promptly notify the agency and the Department of Insurance
82	of cancellation or nonrenewal of insurance required by this
83	section. Unless the nursing home facility demonstrates that it
84	is otherwise in compliance with the requirements of this
85	section, the agency shall issue a conditional license to the
86	nursing home facility. The conditional license remains in effect
87	until the nursing home facility demonstrates compliance with the
88	requirements of this section. If any judgments or settlements
89	are pending at the time of issuance of the conditional license,
90	those judgments or settlements must be paid in accordance with
91	this section unless otherwise mutually agreed to in writing by
92	the parties. This paragraph does not abrogate a judgment
93	debtor's obligation to satisfy the entire amount of any
94	judgment.
95	(b)  If financial responsibility requirements are met by
96	maintaining an escrow account or letter of credit as provided in
97	this section, upon the entry of an adverse final judgment
98	arising from a claim maintained in contract or in tort pursuant
99	to common law or s. 400.023 or s. 400.0233, or from
100	noncompliance with the terms of a settlement agreement arising
101	from a claim maintained in contract or in tort pursuant to
102	common law or s. 400.023 or s. 400.0233, the licensee of the
103	nursing home facility, the nursing home facility, or the entity
104	that owns, operates, manages, or controls the nursing home
105	facility, shall pay the entire amount of the judgment together
106	with all accrued interest, or the amount maintained in the
107	escrow account or provided in the letter of credit as required
108	by this section, whichever is less, within 60 days after the
109	date such judgment became final and subject to execution, unless
110	otherwise mutually agreed to in writing by the parties. If
111	timely payment is not made by the licensee of the nursing home
112	facility, the nursing home facility or the entity that owns,
113	operates, manages, or controls the nursing home facility, the
114	agency shall impose an immediate moratorium or emergency
115	suspension of the license of the nursing home facility. Nothing
116	in this paragraph shall abrogate a judgment debtor's obligation
117	to satisfy the entire amount of any judgment.
118	(3)  Upon the entry of an adverse final judgment arising
119	from a claim maintained in contract or in tort pursuant to
120	common law or s. 400.023 or s. 400.0233, or from noncompliance
121	with the terms of a settlement agreement arising from a claim
122	maintained in contract or in tort pursuant to common law or s.
123	400.023 or s. 400.0233, the licensee of the nursing home
124	facility, the nursing home facility, or the entity that owns,
125	operates, manages, or controls the nursing home facility, shall
126	pay the judgment creditor the lesser of the entire amount of the
127	judgment with all accrued interest or the per claim amounts
128	specified in paragraph (1)(b), within 60 days after the date
129	such judgment became final and subject to execution, unless
130	otherwise mutually agreed to in writing by the parties. Such
131	adverse final judgment shall include any cross-claim,
132	counterclaim, or claim for indemnity or contribution arising
133	from the claim maintained in contract or in tort pursuant to
134	common law or s. 400.023 or s. 400.0233. Nothing in this
135	subsection shall abrogate a judgment debtor's obligation to
136	satisfy the entire amount of any judgment. Upon notification of
137	the existence of an unsatisfied judgment or payment pursuant to
138	this subsection, the agency shall notify the nursing home
139	facility by certified mail that its license shall be suspended
140	unless, within 30 days after the date of mailing, it either:
141	(a)  Shows proof that the unsatisfied judgment has been
142	paid in the amount specified in this subsection; or
143	(b)  Furnishes the department with a copy of a timely filed
144	notice of appeal and either:
145	1.  A copy of a supersedeas bond posted in the amount
146	required by law; or
147	2.  An order from a court of competent jurisdiction staying
148	execution on the final judgment pending disposition of the
149	appeal.
150	(4)  The agency shall issue an immediate moratorium or
151	emergency suspension of the license of a nursing home facility
152	that, 30 days after receipt of a notice from the agency, has
153	failed to:
154	(a)  Satisfy a claim maintained in contract or in tort
155	pursuant to common law or s. 400.023 or s. 400.0233 against it;
156	(b)  Furnish the agency with a copy of a timely filed
157	notice of appeal and a copy of a supersedeas bond properly
158	posted in the amount required by law; or
159	(c)  Furnish the agency with an order from a court of
160	competent jurisdiction staying execution on the final judgment
161	pending disposition of the appeal.
162	(5)  Any deceptive, untrue, or fraudulent representation by
163	the nursing home facility with respect to any provision of this
164	section shall result in permanent disqualification from any
165	exemption to mandated financial responsibility as provided in
166	this section and shall result in the immediate moratorium or
167	emergency suspension of the license of the nursing home
168	facility.
169	(6)  The agency shall adopt rules pursuant to ss. 120.536
170	and 120.54 to implement the provisions of this section.
171	Section 3.  This act shall take effect July 1, 2008.

CODING: Words stricken are deletions; words underlined are additions.