Sec. 10.09.10.08. Interim Working Capital Fund

A. A provider may request an allotment from the Interim Working Capital Fund if the facility for which an allotment is requested has not had any of the following deficiencies cited in any survey conducted by the Office of Health Care Quality during the calendar year preceding the calculation of the allotment, using the scope and severity matrix found in the Centers for Medicare and Medicaid Services State Operations Manual for Survey and Certification, Part 7, §7400E:

(1) Two or more "G" level deficiencies; or

(2) One or more "H" or higher level deficiencies.

B. A provider operating a facility with any of the deficiencies described in §A of this regulation may be eligible for an allotment if the facility has undergone an arm's length change of ownership, as determined by the Department, since the latest survey that resulted in the deficiencies.

C. The Department may deny an allotment from the Interim Working Capital Fund if the Department, based on sufficient information, concludes that the requesting provider is not able to repay the allotment on a timely basis.

D. The maximum allotment for any provider shall be 0.015 times the total Medicaid payments to that provider in the prior State fiscal year.

E. Recalculation.

(1) In March of each year, the Department shall recalculate the maximum allotment based on Medicaid payments for the prior State fiscal year.

(2) If the recalculated maximum allotment is:

(a) Less than the amount the provider carried over from the prior year, the provider shall repay the difference to the Department within 30 days of the date the Department provides notice that a repayment is due; or

(b) Greater than the amount carried over from the prior year, the provider may request the difference from the Department.

F. Revocation.

(1) The Department may revoke the allotment based on:

(a) Quality of care violations;

(b) Changes in business practice that are detrimental to Medicaid recipients;

(c) Impending bankruptcy; or

(d) Other good cause shown.

(2) If the Department revokes the allotment, the provider shall repay the total allotment to the Department within 15 days of the notice of revocation.

G. In order to obtain an allotment, the provider shall agree that it holds the allotment in constructive trust for the State subject to recoupment or immediate payment on demand by the State.

H. The Interim Working Capital Fund expires on May 1, 2020. Providers shall repay all outstanding funds to the Department by May 1, 2020. The Department may grant repayment extensions, not longer than 60 days, under extraordinary circumstances.