Sec. 17b-527. (Formerly Sec. 17a-367). Information to be filed with department. Information to be made available to residents. Regulations.
Sec. 17b-527. (Formerly Sec. 17a-367). Information to be filed with department. Information to be made available to residents. Regulations. (a) A provider
operating a facility located in this state shall file with the department annually, in a form
and manner prescribed by the commissioner, financial and actuarial information for
each facility located in this state and operated by the provider or by a manager under
contract to the provider. The commissioner shall prescribe the information to be filed
which shall include but is not limited to the following: Financial statements including
certified current balance sheets and certified income statements and pro forma statements for the next five years as provided in section 17b-522 and such information as is
necessary to assess the actuarial soundness thereof; the basis for amortization assumptions for the provider's capital costs; the facility's current rate schedule; a statement of
source and application of funds for the five-year period beginning the year of initial
filing pursuant to section 17b-521 or subsequent filing pursuant to section 17b-529;
current and anticipated residential turnover rates; the average age of the residents for
the next five years; healthcare utilization rates, including admission rates and days per
one hundred residents by level of care; occupancy rates; the number of healthcare admissions per year; the days of care per year; and the number of permanent transfers. Financial
and actuarial projections contained in such studies shall be determined on an actuarially
sound basis using reasonable assumptions for mortality, morbidity and interest. Each
provider operating a facility in this state shall make the information filed with the department pursuant to this subsection available to each such resident for viewing during
regular business hours and, upon request, shall provide such resident with a copy of the
most recent filing with the department. Each provider shall notify each resident, at least
annually, of the right to view the filings and of the right to a copy of the most recent filing.
The commissioner may adopt regulations in accordance with chapter 54 to prescribe
financial and actuarial information to be filed pursuant to this subsection.
(b) A provider operating a facility in this state shall notify the commissioner in
writing prior to refinancing its existing indebtedness or making any material change in
its business or corporate structure.
(c) The commissioner may require a provider operating a facility in this state to
submit such information as the commissioner requests if the commissioner has reason
to believe that such facility is in financial distress. The commissioner may require a
provider constructing a facility in this state to submit such information as the commissioner requests if the commissioner has reason to believe that such facility is at risk of
being in financial distress. "Financial distress" means the issuance of a negative going
concern opinion, or failure to meet debt service payments, or drawing down on debt
service reserve.
(d) The commissioner may adopt regulations in accordance with chapter 54 to prescribe additional conditions that constitute financial distress.
(P.A. 86-252, S. 8, 17; P.A. 98-250, S. 25, 39; P.A. 99-282, S. 2, 4.)
History: Sec. 17-542 transferred to Sec. 17a-367 in 1991; Sec. 17a-367 transferred to Sec. 17b-527 in 1995; P.A. 98-250 added new Subsec. (b) re regulations, effective July 1, 1998; P.A. 99-282 amended Subsec. (a) to require providers
to make information filed with the department pursuant to the subsection available to residents during regular business
hours, to provide a copy of the most recent filing upon request and to notify residents of the right to view filings and receive
such copy, and authorized the commissioner to adopt regulations re financial and actuarial information to be filed, inserted
new Subsec. (b) re written notice to the commissioner prior to refinancing existing indebtedness or material change in
business or corporate structure, inserted new Subsec. (c) re commissioner's authority to require additional information if
the commissioner finds the facility is in financial distress, or at risk of being in financial distress, and defined "financial
distress", and redesignated former Subsec. (b) as Subsec. (d) and substituted "additional conditions that constitute financial
distress" for "financial and actuarial information to be filed by a provider ..." re criteria the commissioner may prescribe
by regulation, effective July 1, 1999.