SUCH PARTY HAS RESCINDED, LIMITED OR NOT RENEWED, OR INTENDS TO RESCIND, LIMIT
OR NOT RENEW, ANY SUCH LICENSE OR APPROVAL.
(B)
HEALTHCARE PERMITS. EACH BORROWER HAS
(I) EACH PERMIT AND OTHER RIGHTS FROM, AND HAVE MADE ALL DECLARATIONS AND
FILINGS WITH, ALL APPLICABLE GOVERNMENTAL AUTHORITIES, ALL SELF REGULATORY
AUTHORITIES AND ALL COURTS AND OTHER TRIBUNALS NECESSARY TO ENGAGE IN THE
OWNERSHIP AND OPERATION OF ITS BUSINESS AND THE HEALTHCARE FACILITIES, AND
(II) NO KNOWLEDGE THAT ANY GOVERNMENTAL AUTHORITY IS CONSIDERING LIMITING,
SUSPENDING OR REVOKING ANY SUCH PERMIT.
ALL SUCH PERMITS ARE VALID AND IN FULL
FORCE AND EFFECT AND EACH BORROWER IS IN MATERIAL COMPLIANCE WITH THE TERMS AND
CONDITIONS OF ALL SUCH PERMITS EXCEPT WHERE FAILURE TO BE IN SUCH COMPLIANCE OR
FOR A PERMIT TO BE VALID AND IN FULL FORCE AND EFFECT COULD NOT REASONABLY BE
EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT.
(C)
SPECIFIC LICENSING.
EACH BORROWER AND
HEALTHCARE FACILITY IS DULY LICENSED UNDER THE APPLICABLE LAWS OF THE STATES
WHERE SUCH BORROWER CONDUCTS ANY BUSINESS AND WHERE ANY HEALTHCARE FACILITY IS
LOCATED.
(D)
PARTICIPATION AGREEMENTS/PROVIDER STATUS/COST
REPORTS.
(I)
EACH BORROWER HAS THE REQUISITE
PARTICIPATION AGREEMENT OR PROVIDER NUMBER OR OTHER PERMIT TO BILL THE
RESPECTIVE MEDICAID PROGRAM IN THE STATE OR STATES IN WHICH SUCH BORROWER
OPERATES (TO THE EXTENT SUCH BORROWER PARTICIPATES IN THE MEDICARE OR MEDICAID
PROGRAM IN SUCH STATE OR STATES) AND ALL OTHER THIRD PARTY PAYOR PROGRAMS
(INCLUDING MEDICARE) WHICH HAVE HISTORICALLY ACCOUNTED FOR ANY PORTION OF THE
REVENUES OF SUCH HEALTHCARE FACILITY.
(II)
THERE IS NO INVESTIGATION, AUDIT, CLAIM
REVIEW, OR OTHER ACTION PENDING OR, TO THE KNOWLEDGE OF ANY BORROWER, THREATENED
WHICH COULD REASONABLY BE EXPECTED TO RESULT IN A REVOCATION, SUSPENSION,
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TERMINATION, PROBATION, RESTRICTION, LIMITATION, OR NON-RENEWAL OF ANY
PARTICIPATION AGREEMENTS WITH THIRD PARTY PAYORS WITH RESPECT TO THE BUSINESS OF
EACH BORROWER (COLLECTIVELY, "PARTICIPATION AGREEMENTS") OR PROVIDER NUMBER OR
OTHER PERMIT OR RESULT IN A BORROWER'S EXCLUSION FROM ANY THIRD PARTY PAYOR
PROGRAM, NOR, TO THE KNOWLEDGE OF SUCH BORROWER, HAS ANY THIRD PARTY PAYOR
PROGRAM MADE ANY DECISION NOT TO RENEW ANY PARTICIPATION AGREEMENT OR PROVIDER
AGREEMENT OR OTHER PERMIT RELATED TO ANY HEALTHCARE FACILITY OR ANY BUSINESS
CONDUCTED BY A BORROWER, NOR HAS ANY BORROWER MADE ANY DECISION NOT TO RENEW ANY
PARTICIPATION AGREEMENT OR PROVIDER AGREEMENT OR OTHER PERMIT, NOR IS THERE ANY
ACTION PENDING OR THREATENED TO IMPOSE MATERIAL INTERMEDIATE OR ALTERNATIVE
SANCTIONS WITH RESPECT TO ANY HEALTHCARE FACILITY OR ANY BORROWER.
(III)
EACH BORROWER, AND, TO THE KNOWLEDGE OF SUCH
BORROWER, ITS CONTRACTORS, HAVE PROPERLY AND LEGALLY BILLED ALL INTERMEDIARIES
AND THIRD PARTY PAYORS FOR SERVICES RENDERED WITH RESPECT TO THE HEALTHCARE
FACILITIES AND THE BUSINESS CONDUCTED BY BORROWERS AND HAVE MAINTAINED THEIR
RECORDS TO REFLECT SUCH BILLING PRACTICES.
NO FUNDS RELATING TO ANY BORROWER
ARE NOW, OR, TO THE KNOWLEDGE OF ANY BORROWER WILL BE, WITHHELD BY ANY THIRD
PARTY PAYOR.
(IV)
THERE ARE NO CURRENT, PENDING OR OUTSTANDING
MEDICARE, MEDICAID OR THIRD PARTY PAYOR PROGRAM REIMBURSEMENT AUDITS