(a)  Ratings shall be based on:

(1)           Inspections completed pursuant to G.S. 131D-2(b)(1a)a;

(2)           Statutory and Rule requirements listed in Rule .1603 of this Section;

(3)           Type A or uncorrected Type B penalty violations identified pursuant to G.S. 131D-34; and

(4)           Other items listed in Subparagraphs (c)(1) and (c)(2) of this Rule.

(b)  The initial rating a facility receives shall remain in effect until the next inspection. If an activity occurs which results in the assignment of additional merit or demerit points, a new certificate shall be issued pursuant to Rule .1602(a) of this Section.

(c)  The rating shall be based on a 100 point scale. Beginning with the initial rating and repeating with each annual inspection, the facility shall be assigned 100 points and shall receive merits or demerits, which shall be added or subtracted from the 100 points, respectively. The merits and demerits shall be assigned as follows:

(1)           Merit Points

(A)          If the facility corrects citations of noncompliance with the statutes or rules listed in Rule .1603 of this Subchapter, which are not related to the identification of a Type A violation or an uncorrected Type B violation, the facility shall receive 1.25 merit points for each corrected deficiency;

(B)          If the facility receives citations on its annual inspection with no Type A or Type B violations and the rating from the annual inspection is one or zero stars, the facility may request Division of Health Service Regulation to conduct a follow-up inspection not less than 60 days after the date of the annual inspection. A follow-up inspection shall be completed depending upon the availability of Division of Health Service Regulation staff.  As determined by the follow-up review, the facility shall receive 1.25 merit points for each corrected deficiency;

(C)          If the facility corrects the citation for which a Type A violation was identified, the facility shall receive 2.5 merit points and shall receive an additional 2.5 merit points following the next annual inspection if no further Type A violations are identified;

(D)          If the facility corrects a previously uncorrected Type B violation, the facility shall receive 1.25 merit points;

(E)           If the facility’s admissions have been suspended, the facility shall receive 5 merit points if the suspension is removed;

(F)           If the facility participates in any quality improvement program pursuant to G.S. 131D-10, the facility shall receive 2.5 merit points;

(G)          If the facility receives NC NOVA special licensure designation, the facility shall receive 2.5 merit points;

(H)          On or after the effective date of this Rule, if the facility permanently installs a generator or has a contract with a generator provider to provide emergency power for essential functions of the facility, the facility shall receive 2 merit points. For purposes of this Section, essential functions mean those functions necessary to maintain the health or safety of residents during power outages greater than 6 hours. If the facility has an existing permanently installed generator or an existing contract with a generator provider, the facility shall receive 1 merit point for maintaining the generator in working order or continuing the contract with a generator provider; and

(I)            On or after the effective date of this Rule, if the facility installs automatic sprinklers in compliance with the North Carolina Building Code, the facility shall receive 3 merit points. If the facility has an existing automatic sprinkler, the facility shall receive 2 merit points for subsequent ratings for maintaining the automatic sprinklers in good working order.

(2)           Demerit Points

(A)          For each citation of noncompliance with the statutes or rules listed in Rule .1603 of this Subchapter, the facility shall receive a demerit of 2 points. The facility shall receive demerit points only once for citations in which the findings are identical to those findings used for another citation;

(B)          For each citation of a Type A violation, the facility shall receive a demerit of 10 points;

(C)          For each citation of a Type B violation, the facility shall receive a demerit of 3.5 points and if the Type B violation remains uncorrected as the result of a follow-up inspection, the facility shall receive an additional demerit of 3.5 points;

(D)          If the facility’s admissions are suspended, the facility shall receive a demerit of 10 points; however, if the facility’s admissions are suspended pursuant to G.S. 131D-4.2, the facility shall not receive any demerit points; and

(E)           If the facility receives a notice of revocation against its license, the facility shall receive demerit of 31 points.

(d)  Facilities shall be given a rating of zero to four stars depending on the score assigned pursuant to Paragraph (a), (b) or (c) of this Rule. Ratings shall be assigned as follows:

(1)           Four stars shall be assigned to any facility whose score is 100 points or greater on two consecutive annual inspections;

(2)           Three stars shall be assigned for scores of 90 to 99.9 points, or for any facility whose score is 100 points or greater on one annual inspection;

(3)           Two stars shall be assigned for scores of 80 to 89.9 points;

(4)           One star shall be assigned for scores of 70 to 79.9 points; and

(5)           Zero stars shall be assigned for scores of 69.9 points or lower.