34-12-39.4. New nursing facility as part of existing facility. Notwithstanding the provisions of § 34-12-39.2, a new nursing facility as defined in§ 34-12-1.1 may be constructed, operated, and maintained as part of an existing nursing facility licensed under chapter 34-12 if:

(1) The new nursing facility is located within fifteen miles of the existing nursing facility;

(2) The combined bed capacity of both the licensed existing nursing facility and the new nursing facility do not exceed the total number of beds afforded to the existing nursing facility under § 34-12-35.4; and

(3) Both the existing nursing facility and the new nursing facility serve medicaid residents and both facilities independently maintain an annual minimum medicaid occupancy rate no less than ten percent below the state-wide average at the time rates are established.

For the purposes of medicaid reimbursement, the facility shall submit a combined annual cost report to include the combined costs for both the existing nursing facility and the new nursing facility. Medicaid reimbursement rates shall be calculated using the combined cost report, and rates will be subject to the ceilings and limitations set forth in rules promulgated pursuant to § 28-6-1. The existing facility's medicaid reimbursement rate shall be used to establish the overall ceiling as outlined in rules promulgated pursuant to § 28-6-1. The existing nursing facility is limited to construction of one new facility under this section.

Source: SL 2010, ch 170, § 3.