HOUSE BILL No. 5725


     May 3, 2000, Introduced by Reps. Frank, DeHart, Bovin, Neumann, Pestka, Kelly, Basham, Thomas, Hale and Jamnick and
referred to the Committee on Senior Health, Security and Retirement.


        A bill to amend 1978 PA 368, entitled

   "Public health code,"

   by amending sections 21751 and 21786 (MCL 333.21751 and

   333.21786).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           Sec. 21751.  (1)  When  IF the department has concluded a

 2
      proceeding under sections 71 to 106 of the administrative proce-

 3
      dures act of 1969,  as amended, being sections 24.271 to 24.306

 4
      of the Michigan Compiled Laws  MCL 24.271 TO 24.306, or,  when
   

 5
      SUBJECT TO SECTION 21786(2), IF the department has suspended or

 6
      revoked the license of a nursing home, the department, a patient

 7
      in the  facility  NURSING HOME, or a patient's representative may

 8
      file an emergency petition with the circuit court to place the

 9
      nursing home under the control of a receiver if necessary to

10
      protect the health or safety of patients in the nursing home.


   04426'99                                                 CPD
                                              2

 1
      The court may grant the petition upon a finding that the health

 2
      or safety of the patients in the nursing home would be seriously

 3
      threatened if a condition existing at the time the petition was

 4
      filed is permitted to continue.

 5
           (2)  The  IF A PETITION IS FILED UNDER SUBSECTION (1), THE

 6
      court shall appoint as receiver the director of the  department

 7
      of social services  FAMILY INDEPENDENCE AGENCY, the director of

 8
      the department of  public health  CONSUMER AND INDUSTRY SERVICES,

 9
      or another state agency or person designated by the director of

10
       public health  THE DEPARTMENT OF CONSUMER AND INDUSTRY

11
      SERVICES.  The receiver appointed by the court shall use the

12
      income and assets of the nursing home to maintain and operate the

13
      NURSING home and to attempt to correct the conditions  which 

14
      THAT constitute a threat to the patients IN THE NURSING HOME.

15
       A  THE RECEIVER SHALL NOT MAKE A major structural alteration

16
       shall not be made  to the nursing home, unless the alteration is

17
      necessary to bring the nursing home into compliance with licens-

18
      ing requirements.

19
           (3) To assist in the implementation of the mandate of the

20
      court, the receiver APPOINTED UNDER SUBSECTION (2) may request

21
      and receive reasonable consultation from the available personnel

22
      of the department.

23
           (4) The COURT SHALL TERMINATE A receivership  shall be

24
      terminated  ORDERED UNDER THIS SECTION when the receiver and the

25
      court certify that the conditions  which  THAT prompted the

26
      appointment OF THE RECEIVER have been corrected, when the NURSING

27
      HOME'S license is restored, when a new license is issued, or, in



   04426'99
                                   3

 1
      the case of a discontinuance of operation OF THE NURSING HOME,

 2
      when the patients are safely placed in other facilities, which-

 3
      ever occurs first.

 4
           (5) Upon the termination of the receivership, the receiver

 5
      shall render a complete accounting to the court and shall dispose

 6
      of surplus funds as the court directs.

 7
           Sec. 21786.  (1) In the case of an emergency closing of a

 8
      nursing home, or  when it is determined by  IF the department OF

 9
      CONSUMER AND INDUSTRY SERVICES DETERMINES that a nursing home is

10
      suddenly no longer able to provide adequate patient care, the

11
      department shall do both of the following:

12
           (a) Assure that the  department of social services  FAMILY

13
      INDEPENDENCE AGENCY has been notified to make arrangements for

14
      the orderly and safe discharge and transfer of the NURSING HOME'S

15
      patients to another facility.

16
           (b) Place a representative of the department in  a facility 

17
      THE NURSING HOME on a daily basis to do each of the following:

18
           (i) Monitor the discharge AND TRANSFER of patients to other

19
      facilities or locations.

20
           (ii) Ensure that the rights of patients are protected.

21
           (iii) Discuss the discharge and relocation with each patient

22
      and next of kin or legal guardian, person, or agency responsible

23
      for the patient's placement, maintenance, and care in the

24
       facility  NURSING HOME.  The DEPARTMENT REPRESENTATIVE SHALL

25
      PRODUCE A WRITTEN SUMMARY OF THE content of  the  EACH explana-

26
      tion and discussion  shall be summarized in writing  and shall





   04426'99
                                   4

 1
       be made  MAKE THE WRITTEN SUMMARY a part of the patient's

 2
      clinical record.

 3
           (2) IF THE DEPARTMENT SUSPENDS OR REVOKES A NURSING HOME'S

 4
      LICENSE MORE THAN TWICE DURING A 5-YEAR PERIOD AND AS A RESULT

 5
      THE NURSING HOME DISCONTINUES OPERATION, THE DEPARTMENT SHALL

 6
      FILE A PETITION WITH THE CIRCUIT COURT UNDER THIS SUBSECTION.

 7
      THE DEPARTMENT SHALL PETITION THE COURT FOR AN ORDER FREEZING THE

 8
      ASSETS AND INCOME OF THE NURSING HOME.  THE DEPARTMENT SHALL FUR-

 9
      THER PETITION THE COURT FOR AN ORDER ALLOWING THE DEPARTMENT TO

10
      USE THOSE ASSETS AND INCOME TO PAY THE COST OF DISCHARGING AND

11
      TRANSFERRING THE NURSING HOME'S PATIENTS AS DESCRIBED IN THIS

12
      SECTION AND OTHER COSTS INCURRED BY THE DEPARTMENT UNDER THIS

13
      SECTION.































   04426'99          Final page.                            CPD