§ 10-409. Feasibility study

   (a) Required. -- A provider may not collect deposits for continuing care or begin construction of a new facility until the Department approves a feasibility study.

(b) Statement of intent. -- A person who intends to submit a feasibility study under subsection (c) of this section shall file with the Department a statement of intent to provide continuing care at least 30 days before the person submits the feasibility study to the Department.

(c) Form and contents. -- A feasibility study shall:

   (1) be filed in a form satisfactory to the Department; and

   (2) include at least the following information:

      (i) a statement of the purpose of the proposed construction or conversion;

      (ii) documentation of the financial resources of the provider;

      (iii) a statement of the capital expenditures necessary to accomplish the project and the plan for acquiring the necessary capital;

      (iv) a plan demonstrating the financial feasibility of the proposed project, including future funding sources;

      (v) a study that demonstrates the market for the project;

      (vi) an actuarial forecast reviewed by a qualified actuary;

      (vii) a statement of the planned fee structure, including any proposed escalator or other automatic adjustment provision;

      (viii) a description of the facility proposed to be used or being used for continuing care;

      (ix) a copy of the proposed escrow and deposit agreements; and

      (x) the form and substance of any proposed advertisement, advertising campaign, or promotional material for the facility that is available at the time of filing.

(d) Approval of feasibility study. -- The Department may approve a feasibility study if the Department determines that:

   (1) the number of comprehensive care or assisted living beds in the facility for which licenses are required by the Department of Health and Mental Hygiene is not inconsistent with the State health plan;

   (2) a reasonable financial plan has been submitted for developing and operating the project;

   (3) a market for the facility appears to exist;

   (4) a recognized authority prepared the feasibility study;

   (5) the actuarial forecast supports the projections for the project;

   (6) the Department has approved the escrow agreement and deposit agreement; and

   (7) the approved escrow agreement is executed by the provider and the financial institution.

HISTORY: An. Code 1957, art. 70B, § 10(a), (b), (d); 2007, ch. 3, § 2.