Florida Statutes 651.034 – Financial and operating requirements for providers
Current as of: 2024 | Check for updates
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(1)(a) If a regulatory action level event occurs, the office must:
1. Require the provider to prepare and submit a corrective action plan or, if applicable, a revised corrective action plan;
2. Perform an examination pursuant to s. 651.105 or an analysis, as the office considers necessary, of the assets, liabilities, and operations of the provider, including a review of the corrective action plan or the revised corrective action plan; and
3. After the examination or analysis, issue a corrective order, if necessary, specifying any corrective actions that the office determines are required.
Terms Used In Florida Statutes 651.034
- advisory council: means the council established in…. See Florida Statutes 651.011
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- care: means , pursuant to a contract, furnishing shelter and nursing care or personal services to a resident who resides in a facility, whether such nursing care or personal services are provided in the facility or in another setting designated in the contract for continuing care, by an individual not related by consanguinity or affinity to the resident, upon payment of an entrance fee. See Florida Statutes 651.011
- Corrective order: means an order issued by the office which specifies corrective actions that the office determines are required in accordance with this chapter or commission rule. See Florida Statutes 651.011
- Department: means the Department of Financial Services. See Florida Statutes 651.011
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- impairment: means that either of the following has occurred:(a) A provider has failed to maintain its minimum liquid reserve as required under…. See Florida Statutes 651.011
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Occupancy: means the total number of occupied independent living units, assisted living units, and skilled nursing beds in a facility divided by the total number of units and beds in that facility, excluding units and beds that are unavailable to market or that are reserved by prospective residents. See Florida Statutes 651.011
- Provider: means the owner or operator, whether a natural person, partnership or other unincorporated association, however organized, trust, or corporation, of an institution, building, residence, or other place, whether operated for profit or not, which owner or operator provides continuing care or continuing care at-home for a fixed or variable fee, or for any other remuneration of any type, whether fixed or variable, for the period of care, payable in a lump sum or lump sum and monthly maintenance charges or in installments. See Florida Statutes 651.011
- registered mail: includes certified mail with return receipt requested. See Florida Statutes 1.01
- Regulatory action level event: means that any two of the following have occurred:
(a) The provider's debt service coverage ratio is less than the greater of the minimum ratio specified in the provider's bond covenants or lending agreement for long-term financing or 1. See Florida Statutes 651.011- Trustee: A person or institution holding and administering property in trust.
(b) In determining corrective actions, the office shall consider any factor relevant to the provider based upon the office’s examination or analysis of the assets, liabilities, and operations of the provider. The provider must submit the corrective action plan or the revised corrective action plan within 30 days after the occurrence of the regulatory action level event. The office shall review and approve or disapprove the corrective action plan within 45 business days.(c) The office may use members of the Continuing Care Advisory Council, individually or as a group, or may retain actuaries, investment experts, and other consultants to review a provider’s corrective action plan or revised corrective action plan; examine or analyze the assets, liabilities, and operations of a provider; and formulate the corrective order with respect to the provider. The costs and expenses relating to consultants must be borne by the affected provider.(2) Except when the office’s remedial rights are suspended pursuant to s. 651.114(11)(a), the office must take action necessary to place an impaired provider under regulatory control, including any remedy available under part I of chapter 631. An impairment is sufficient grounds for the department to be appointed as receiver as provided in chapter 631, except when the office’s remedial rights are suspended pursuant to s. 651.114(11)(a). If the office’s remedial rights are suspended pursuant to s. 651.114(11)(a), the impaired provider must make available to the office copies of any corrective action plan approved by the third-party lender or trustee to cure the impairment and any related required report. For purposes of s. 631.051, impairment of a provider is defined according to the term “impaired” under s. 651.011. The office may forego taking action for up to 180 days after the impairment if the office finds there is a reasonable expectation that the impairment may be eliminated within the 180-day period.(3) There is no liability on the part of, and a cause of action may not arise against, the commission, department, or office, or their employees or agents, for any action they take in the performance of their powers and duties under this section.(4) The office shall transmit any notice that may result in regulatory action by registered mail, certified mail, or any other method of transmission which includes documentation of receipt by the provider. Notice is effective when the provider receives it.(5) This section is supplemental to the other laws of this state and does not preclude or limit any power or duty of the department or office under those laws or under the rules adopted pursuant to those laws.(6) The office may exempt a provider from subsection (1) or subsection (2) until stabilized occupancy is reached or until the time projected to achieve stabilized occupancy as reported in the last feasibility study required by the office as part of an application filing under s. 651.0215, s. 651.023, s. 651.024, or s. 651.0246 has elapsed, but for no longer than 5 years following the end of the provider’s fiscal year in which the certificate of occupancy was issued.(7) The commission may adopt rules to administer this section, including, but not limited to, rules regarding corrective action plans, revised corrective action plans, corrective orders, and procedures to be followed in the event of a regulatory action level event or an impairment.