As reduced census continues to be a challenge, surrendering nursing home beds may provide an opportunity for Ohio providers to save costs by lowering your facility’s annual bed tax (franchise permit fee).
How to do it:
You must provide a written delicensure request to the Ohio Department of Health (ODH) prior to January 1st in which you permanently surrender nursing home beds.
Considerations in making the decision:
- When you permanently surrender beds, the delicensed beds cannot be operated, placed into service, or sold.
- Before surrendering any licensed beds to ODH, you must obtain approval from any entity who has a security interest in the beds or with whom you have a contractual obligation to maintain a certain licensed capacity, which may include traditional commercial lenders, HUD, or your landlord.
The bottom line:
If you wish to reduce your bed tax for the next fiscal year, you need to act quickly.
ROLF can help you in analyzing whether delicensing beds is right for your facility, obtaining any third-party approval to delicense the beds, and preparing a delicensure request to ODH.