2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 45 - CONTINUING CARE PROVIDERS AND FACILITIES (§§ 33-45-1 — 33-45-14) › Section 33-45-10 - Information disclosure requirements

(a)
Each facility shall maintain as public information, available upon request, a copy of its current disclosure statement and the disclosure and all previous disclosure statements that have been filed with the department. Each facility shall post in a prominent position in the facility, so as to be accessible to all residents and to the general public, a notice explaining where such disclosure statements may be viewed. In conjunction with the disclosure statement, the facility shall notify residents of any proposed changes in policies, programs, and services.
(b)
Each facility shall post in a prominent position in the facility so as to be accessible to all residents and to the general public a brief summary of the disclosure statement required pursuant to subsection (a) of this Code section, indicating in the summary where the full disclosure statement may be inspected in the facility. A listing of any proposed changes in policies, programs, and services shall also be posted.
(c)
Before entering into a continuing care agreement to furnish continuing care or at the time of, or prior to, the transfer of any money or other property to a provider by or on behalf of a prospective resident, whichever occurs first, the provider undertaking to furnish the care, or the agent of the provider, shall provide the current disclosure statement required pursuant to subsection (a) of this Code section and copies to the prospective resident, or his or her legal representative, of the continuing care agreement.
(d)
The text of the disclosure statement required by this Code section shall contain at least:
(1)
The name and business address of the provider and a statement as to whether the provider is a partnership, corporation, or other type of legal entity;
(2)
The names and business addresses and description of the business experience of the person, if any, in the operation or management of similar facilities of the officers, directors, trustees, managing or general partners, any person having a 10 percent or greater equity or beneficial interest in the provider, and any person who will be managing the facility on a day to day basis and a description of these persons' interests in or occupations with the provider;
(3)
Information on all persons named in response to paragraph (2) of this subsection which details:
(A)
Any conflict or potential conflict of interest; and
(B)
Any relevant criminal record, including a plea of nolo contendere, background on relevant civil judicial proceedings, and relevant action brought by a governmental agency or department, if the order or action arose out of or related to business activity of health care;
(4)
A statement as to whether the provider is or is not affiliated with a religious, charitable, or other nonprofit organization; the extent of the affiliation, if any; the extent to which the affiliate organization will be responsible for the financial and contract obligations of the provider; and the provision of the federal Internal Revenue Code, if any, under which the provider or affiliate is exempt from the payment of income tax;
(5)
An estimate of the number of residents of the facility to be provided services;
(6)
The location and description of the physical property or properties of the facility, existing or proposed, and to the extent proposed, the estimated completion date or dates, whether construction has begun, and the contingencies subject to which construction may be deferred;
(7)
The location of other facilities, if any, which the provider owns or operates;
(8)
A statement that the provider maintains financial reserves in conformance with the requirements of Code Section
33-45-11
or otherwise meets the requirements of that Code section; the provisions that the provider has made or will make to provide reserve funding or security to enable the provider to perform its obligations fully under continuing care agreements to provide continuing care or limited continuing care at the facility, including the establishment of escrow accounts, trusts, or reserve funds, together with the manner in which these funds will be invested; and the names and experience of any individuals in the direct employment of the provider who will make the investment decisions;
(9)
A financial statement audited by an independent certified public accountant which shall provide the information required by this Code section for two or more fiscal years if the facility has been in existence that long. If the facility has been in existence for a lesser length of time, the financial statements of the provider shall be for the most recent fiscal year or such shorter period of time as the provider shall have been in existence. If the provider's fiscal year ended more than 120 days prior to the date the disclosure statement is recorded, interim financial statements as of a date not more than 90 days prior to the date of recording the statement shall also be included but need not be certified to by an independent certified public accountant. The financial statement shall contain the following:
(A)
An accountant's opinion and, in accordance with generally accepted accounting principles:
(i)
A balance sheet;
(ii)
A statement of income and expenses;
(iii)
A statement of equity or fund balances; and
(iv)
A statement of changes in financial position; and
(B)
Notes to the financial statements considered customary or necessary for full disclosure or adequate understanding of the financial statements, financial condition, and operation and additional costs to the resident;
(10)
The level of participation in medicare or Medicaid programs, or both; and
(11)
A statement concerning all fees required of residents, including, but not limited to:
(A)
A statement of the entrance fee charged, the monthly service charges, the proposed application of the proceeds of the entrance fee by the provider, and the plan by which the amount of the entrance fee is determined if the entrance fee is not the same in all cases; and
(B)
A record of past increases in entrance fees and monthly care fees and other similar charges during the previous three years;
(12)
If a facility is in a stage of being proposed or developed, it shall additionally provide:
(A)
The summary of the report of an actuary estimating the capacity of the provider to meet its contractual obligation to the residents; and
(B)
A statement of cash flows and narrative disclosure detailing all significant assumptions used in the preparation of the statement of cash flows. The Commissioner may establish by rule or regulation the necessary and significant assumptions used in the preparation of the statements of cash flow; and
(13)
Any additional costs to the resident.
(e)
The cover page of the disclosure statement shall state, in a prominent location and in boldface type, the date of the disclosure statement, the last date through which the disclosure statement may be delivered if not earlier revised, and that the delivery of the disclosure statement to a contracting party before the execution of a continuing care agreement is required by this chapter, but that the disclosure statement has not been reviewed or approved by any government agency or representative to ensure accuracy or completeness of the information set out.
(f)
A copy of the continuing care agreement generally used by the provider shall be attached to each disclosure statement.
(g)
The Commissioner may prescribe a standardized format for the disclosure statement required by this Code section.
(h)
The department may require a provider to alter or amend its disclosure statement in order to provide full and fair disclosure to prospective residents. The department may also require the revision of a disclosure statement which it finds to be unnecessarily complex, confusing, or illegible.
Amended by 2017 Ga. Laws 275,§ 33, eff. 5/9/2017.
Amended by 2014 Ga. Laws 555,§ 5, eff. 7/1/2014.
Redesignated and amended by 2011 Ga. Laws 77,§ 1, eff. 5/11/2011.