Section 51K. (a) For the purposes of this section, the following words shall have the following meanings unless the context clearly requires otherwise:

''Home health agency'', an entity or organization that provides home health services; provided, however, that ''home health agency'' shall not include an entity operated by either the federal government or the commonwealth providing home health services.

''Home health services'', skilled nursing services or other therapeutic services provided in a patient's home with supervision by a physician or registered nurse.

(b) Unless otherwise expressly authorized by the department, no person shall establish, maintain, operate or hold oneself out as a home health agency without a home health agency license issued by the department and no organization or entity shall provide home health services, use the words ''home health'' to describe its services or establish, maintain, operate or hold itself out as a home health agency without a home health agency license issued by the department.

(c) The department shall issue for a term of 3 years, and renew for a like term, a license to maintain a home health agency to an entity or organization that demonstrates to the department that it is responsible and suitable to maintain such an agency. A home health agency license shall be subject to suspension, revocation or refusal to renew for cause. Initial application and renewal fees for the license shall be established pursuant to section 3B of chapter 7.

The department may impose a fine of up to $10,000 on a person or entity that advertises, announces, establishes, maintains or is concerned in establishing or maintaining a home health agency without a license granted by the department. The department may impose a fine of not more than $10,000 on a licensed home health agency that violates this section or any rule or regulation promulgated hereunder. Each day during which a violation continues shall constitute a separate offense. The department may conduct surveys and investigations to enforce compliance with this section.

(d) A home health agency certified for participation in either Medicare or Medicaid shall be deemed to meet the requirements of the initial licensure application and the department may approve such an application upon a finding of responsibility and suitability and that the agency meets all other licensure requirements as determined by the department. Nothing in this subsection shall limit the authority of the department to require a fee, impose a fine, conduct surveys and investigations or to suspend, revoke or refuse to renew a license pursuant to subsection (c).

(e) The department shall promulgate rules and regulations to implement this section.