(1) No person,
partnership, association, corporation, or state, county or local government
unit, or any division, department, board or agency thereof, shall establish,
conduct, operate, or maintain in the State of Tennessee any home for the aged
without having a license. A license shall be issued only to the applicant named
and only for the premises listed in the application for licensure. Licenses are
not transferable or assignable and shall expire and become invalid annually on
the anniversary date of their original issuance. The license shall be
conspicuously posted in the home for the aged.
In order to make application for a
(a) The applicant shall submit an
application on a form prepared by the department.
Each applicant for a license shall pay an
annual license fee based on the number of beds as follows:
1. Less than 6 beds
2. 6 to 24 beds, inclusive
3. 25 to 49 beds, inclusive
4. 50 to 74 beds, inclusive
5. 75 to 99 beds, inclusive
6. 100 to 124 beds, inclusive
7. 125 to 149 beds, inclusive
8. 150 to 174 beds, inclusive
9. 175 to 199 beds, inclusive
For homes for the aged of two hundred (200) beds or more the
fee shall be two thousand eight hundred and sixty dollars ($2,860.00) plus two
hundred dollars ($200.00) for each twenty-five (25) beds or fraction thereof in
excess of one hundred ninety-nine (199) beds. The fee shall be submitted with
the application or renewal and is not refundable.
(c) The issuance of an application form is in
no way a guarantee that the completed application will be accepted or that a
license will be issued by the department. Residents shall not be admitted to
the home until a license has been issued. Applicants shall not hold themselves
out to the public as being a home for the aged until the license has been
issued. A license shall not be issued until the facility is in substantial
compliance with these rules.
The applicant must prove the ability to meet the financial needs of the
(e) The applicant shall
not use subterfuge or other evasive means to obtain a license, such as filing
for a license through a second party when an individual has been denied a
license or has had a license disciplined or has attempted to avoid inspection
and review process.
applicant shall allow the residential home for the aged to be inspected by a
Department surveyor. In the event that deficiencies are noted, the applicant
shall submit a plan of corrective action to the Board that must be accepted by
the Board. Once the deficiencies have been corrected, then the Board shall
consider the application for licensure.
A proposed change of ownership, including
a change in a controlling interest, must be reported to the department a
minimum of thirty (30) days prior to the change. A new application and fee must
be received by the department before the license may be issued.
(a) For the purpose of licensing, the
licensee of a home for the aged has the ultimate responsibility for the
operation of the facility, including the final authority to make or control
operational decisions and legal responsibility for the business management. A
change of ownership occurs whenever this ultimate legal authority for the
responsibility of the home's operation is transferred.
(b) A change of ownership occurs whenever
there is a change in the legal structure by which the home is owned and
constituting a change of ownership include, but are not limited to, the
1. Transfer of the facility's
2. Lease of the
Dissolution of any partnership that owns, or owns a controlling interest in,
4. One partnership is
replaced by another through the removal, addition or substitution of a
5. Removal of the general
partner or general partners, if the facility is owned by a limited
6. Merger of a
facility owner (a corporation) into another corporation where, after the
merger, the owner's shares of capital stock are canceled;
7. The consolidation of a corporate facility
owner with one or more corporations; or
8. Transfers between levels of
Transactions which do not constitute a change of ownership include, but are not
limited to, the following:
1. Changes in the
membership of a corporate board of directors or board of trustees;
2. Two (2) or more corporations merge and the
originally-licensed corporation survives;
3. Changes in the membership of a non-profit
4. Transfers between
departments of the same level of government; or
5. Corporate stock transfers or sales, even
when a controlling interest.
(e) Management agreements are generally not
changes of ownership if the owner continues to retain ultimate authority for
the operation of the facility. However, if the ultimate authority is
surrendered and transferred from the owner to a new manager, then a change of
ownership has occurred.
Sale/lease-back agreements shall not be treated as changes in ownership if the
lease involves the facility's entire real and personal property and if the
identity of the leasee, who shall continue the operation, retains the exact
same legal form as the former owner.
(a) In order to renew a license, each
residential home for the aged shall submit to periodic inspections by
Department surveyors for compliance with these rules. If deficiencies are
noted, the licensee shall submit an acceptable plan of corrective action and
shall remedy the deficiencies. In addition, each licensee shall submit a
renewal form approved by the board and applicable renewal fee prior to the
expiration date of the license.
If a licensee fails to renew its license prior to the date of its expiration
but submits the renewal form and fee within sixty (60) days thereafter, the
licensee may renew late by paying, in addition to the renewal fee, a late
penalty of one hundred dollars ($100) per month for each month or fraction of a
month that renewal is late; provided that the late penalty shall not exceed
twice the renewal feee.
event that a licensee fails to renew its license within the sixty (60) day
grace period following the license expiration date, then the licensee shall
reapply for a license by submitting the following to the Board office:
1. A completed application for licensure;
2. The license fee provided in
(d) Upon reapplication, the licensee shall
submit to an inspection of the facility by Department of Health
(5) A license
shall be issued only for the location designated and the licensee named in the
application. If a home moves to a new location, a new license will be required
before residents are admitted. A licensee who plans to relocate must contact
the department to inspect the new building prior to relocation.
(6) Any admission in excess of the licensed
bed capacity is prohibited.
separate license shall be required for each home for the aged when more than
one home is operated under the same management or ownership.
Tenn. Comp. R. &
rule filed June 21, 1979; effective August 6, 1997. Amendment filed August 16,
1988; effective September 30, 1988. Amendment filed January 30, 1992; effective
March 15, 1992. Repeal and new rule filed July 27, 2000; effective October 10,
2000. Amendment filed November 19, 2003; effective February 2, 2004. Amendment
filed September 8, 2006; effective November 22, 2006. Amendment filed January
19, 2007; effective April 4, 2007. Public necessity rules filed April 29, 2009;
effective through October 11, 2009. Emergency rules filed October 9, 2009;
effective through April 7, 2010. Amendments filed September 24, 2009; effective
December 23, 2009. Amendment filed December 16, 2013; effective March 16, 2014.
Amendments filed March 21, 2018; to have been effective June 19, 2018. However,
on May 24, 2018, the Government Operations Committee filed a 5-day stay; new
effective date 6/24/2018.
Authority: T.C.A. §§
Chapter 846 of the Public Acts of 2008, §1, T.C.A. §
[effective January 1, 2009].