Certificate of need and application for licensure | NJ

Licensure Requirements

Certificate of need and application for licensure

Operating an assisted living facility in the state of New Jersey requires a certificate of need as well as a license issued by the Department of Health, who is the regulatory agency in the state. Renewing the operating license is also yearly process for ALFs that requires great attention to detail to ensure the continuation of your ability to care for seniors.  See the following regulation as to how to properly apply for your license and ensure good standing with the issued license:

  • 8:36-2.2 Application for licensure

(a) Following receipt of a certificate of need, any person, organization, or corporation desiring to operate an assisted living residence, comprehensive personal care home or assisted living program shall make application to the Commissioner for a license on forms prescribed by the Department. Such forms may be obtained from:

Director
Long-Term Care Licensing and Certification
Division of Long-Term Care Systems
New Jersey State Department of Health and Senior Services
PO BOX 367
Trenton, New Jersey 08625-0367
(609)-633-9034

(b) Any long-term care facility, residential health care facility, or Class “C” boarding home planning to provide assisted living services shall obtain licensing approval from the Department prior to initiating services.

(c) A copy of the assisted living residence or comprehensive personal care home admission agreement or other document stating the scope of a facility’s services shall be forwarded to the Director, Long-Term Care Licensing and Certification (see (a) above for address) for review when application for licensure is made. Review shall ensure that the admission agreement does not violate any requirements contained herein, any conditions placed on certificate of need approval, or any applicable State or Federal statutes. This subsection shall not apply when a continuing care retirement community (CCRC) contracts with its residents to provide assisted living pursuant to a continuing care agreement. This subsection does apply, however, when a CCRC provides assisted living to a person who is not a party to a continuing care agreement. The admission agreement shall include, but not be limited to, the following:

  1. Proposed charges for room, board and all levels of service and care and for all additional services and care not included in the standard package of rates in accordance with N.J.A.C. 8:36-6.2;
  2. Specification of how and when the resident will be notified of any change in charges, and a statement that each resident has the right to request written justification of any increase in charges in accordance with N.J.A.C. 8:36-6.2;
  3. A statement that each resident has the right to appeal an involuntary discharge as specified at N.J.A.C. 8:36-5.14(b); and
  4. Specification of the criteria identified at N.J.A.C. 8:36-5.1(d) which will be used to discharge residents and an explanation of how the discharge process will be implemented, including which facility staff will participate and the extent of resident participation.

(d) The Department shall charge a nonrefundable fee of $ 1,500 plus $ 15.00 per bed (for the number of licensed beds) for the filing of an application for licensure and each annual renewal of an assisted living residence or comprehensive personal care home license thereafter. The facility shall apply for a license for the maximum number of beds available in its residential units. These fees shall not exceed the maximum caps set forth at N.J.S.A. 26:2H-12, as may be amended from time to time.

(e) The application shall include, but not be limited to, the following:

  1. An evaluation of the previous licensing track record of the proposed licensed operator in New Jersey and other states, where applicable. This evaluation shall include assisted livingand other licensed health care facilities owned, operated or managed by the prospective licensed operator and any such facilities owned, operated, or managed by any entity affiliated with the proposed operator;
  2. The proposed licensed operator’s capacity to comply with licensing requirements;
  3. A description of the physical plant, including the number and type of beds requested;
  4. An evaluation of any requested waivers to licensing requirements that are sought in accordance with N.J.A.C. 8:36-2.7;
  5. A description of how the architectural design will promote the essential values of assisted living, including privacy, choice, independence, dignity and a home-like environment;
  6. A description of how the physical plant will facilitate the care of residents with common long-term care problems, such as reduced mobility, incontinence and dementia; and
  7. A statement of the proposed licensed operator’s commitment to assuring access to assisted livingfor individuals with nursing home level of care needs, as defined in N.J.A.C. 8:36-1.3. This statement shall indicate that within 36 months after licensure, at least 20 percent of the facility’s residents shall be individuals with nursing home-level of care needs. This percentage shall be computed based on the number of resident days per calendar year and may include direct admissions as well as maintained residents with nursing home-level of care needs.

(f) In addition to the application requirements of (e) above, if an applicant is required to submit plans under N.J.A.C. 8:36-2.3, the applicant shall submit a description of how the location of the proposed facility will promote the physical integration or social connection of the residents into a neighborhood, center or other area with existing services or amenities.

(g) The Department shall charge a nonrefundable fee of $ 750.00 for the filing of an application to add bed or non-bed related services to an existing assisted living residence or comprehensive personal care home.

(h) The Department shall charge a nonrefundable fee of $ 375.00 for the filing of an application to reduce bed or non-bed related services at an existing assisted living residence or comprehensive personal care home.

(i) The Department shall charge a nonrefundable fee of $ 375.00 for the filing of an application for the relocation of an assisted living residence or comprehensive personal care home.

(j) The Department shall charge a nonrefundable fee of $ 1,500 for the filing of an application for the transfer of ownership of an assisted living residence or comprehensive personal care home.

(k) All applicants shall demonstrate that they have the capacity to operate an assisted living residence or program or a comprehensive personal care home in accordance with the rules in this chapter. An application for a license or change in service shall be denied if the applicant cannot demonstrate that the premises, equipment, personnel, including principals and management, finances, rules and bylaws, and standards of health care are fit and adequate and that there is reasonable assurance that the health care facility will be operated in accordance with the standards required by these rules. The Department shall consider an applicant’s prior history in operating a health care facility either in New Jersey or in other states in making this determination. Any evidence of licensure violations representing serious risk of harm to residents may be considered by the Department, as well as any record of criminal convictions representing a risk of harm to the safety or welfare of residents.

(l) The Department shall charge a nonrefundable fee of $ 1,125.00 for the filing of an application for licensure and each annual renewal of an assisted living program. The application shall include, but not be limited, to the following:

  1. A copy of the written contract between the program provider and the publicly subsidized housing unit in accordance with N.J.A.C. 8:36-23.2(c);
  2. A copy of the written agreement or contract between the program provider and residents that will be used at each program site, including clearly addressing N.J.A.C. 8:36-23.3(d); and
  3. An evaluation of the requirements specified in (e)1 and 2 above.

(m) Each licensed assisted living program office site may provide services in an area that covers no more than two contiguous counties, although the facility may apply to establish and license sufficient sites to provide services for multiple counties, up to and including a Statewide service area.

(n) Each applicant for a license to operate a facility or program may make an appointment for a preliminary conference at the Department with the Long-Term Care Licensing Program.

(o) Each assisted living residence and comprehensive personal care home shall be assessed a biennial inspection fee of $ 1,500. This fee shall be assessed in the year the facility will be inspected, along with the annual licensure fee for that year. The fee shall be added to the initial licensure fee for new facilities. Failure to pay the inspection fee shall result in non-renewal of the license for existing facilities and the refusal to issue an initial license for new facilities. This fee shall be imposed only every other year even if inspections occur more frequently and only for the inspection required to either issue an initial license or to renew an existing license. It shall not be imposed for any other type of inspection.

(p) Each assisted living program shall be assessed a biennial inspection fee of $ 750.00. This fee shall be assessed in the year the facility will be inspected, along with the annual licensure fee for that year. The fee shall be added to the initial licensure fee for new facilities. Failure to pay the inspection fee shall result in non-renewal of the license for existing facilities and the refusal to issue an initial license for new facilities. This fee shall be imposed only every other year even if the inspections occur more frequently and only for the inspection required to either issue an initial license or to renew an existing license. It shall not be imposed for any other type of inspection.

Top Takeaways:

  • (c)A copy of the assisted living residence or comprehensive personal care home admission agreement or other document stating the scope of a facility’s services shall be forwarded to the Director, Long-Term Care Licensing and Certification (see (a) above for address) for review when application for licensure is made

When you submit your application, you must include your written admission agreement and any other documents that outline the facilities scope of services and operating plan. The document will be used as a base for the director to ensure you are not violating any of the requirements in the ALF regulatory guide.

  • (p)Each assisted living program shall be assessed a biennial inspection fee of $ 750.00. This fee shall be assessed in the year the facility will be inspected, along with the annual licensure fee for that year. The fee shall be added to the initial licensure fee for new facilities.

In addition to the biennial inspection fee, facilities will also undergo a thorough evaluation of the regulations that are issued to all assisted living facilities. The inspection will audit areas of staff training files, resident medical records, emergency plan and specific issues of resident care.