This Indiana regulation establishes the certification process for 'residential care providers' under the Division of Mental Health and Addiction, covering entities that operate supervised group living facilities, semi-independent living programs, sub-acute stabilization facilities, transitional residential facilities, and alternative family for adults programs. Operators must obtain division certification before commencing services, meet organizational governance standards (governing board composition, CEO qualifications, strategic planning, annual assessments), maintain liability insurance and annual audits, and notify the division of material changes. Community mental health centers, managed care providers, and addiction services providers with regular certification are deemed automatically certified as residential care providers.
View official sourceTITLE 440 DIVISION OF MENTAL HEALTH AND ADDICTION ARTICLE 6. RESIDENTIAL CARE PROVIDERS; CERTIFICATION Rule 1. Definitions Rule 2. Certification of Residential Care Providers Copy Rule 1 Success! Successfully copied the text of Rule 1 to the clipboard. If you experience issues pasting in Word; go to File > Options > Add-ins > Manage: “COM Add-ins” Go… > and uncheck “SLP Office Support” then click OK. You can paste the text of the document into MS Word. Please note that your settings may affect the formatting of the text. OK Error Something went wrong, and the text has not been copied to the clipboard. OK Rule 1. Definitions 440 IAC 6-1-1 Definitions 440 IAC 6-1-1 Definitions Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 ; IC 23-17 Sec. 1. The following definitions apply throughout this article: (1) "Annual assessment" means a written summary of a residential provider's successes and failures in achieving the fiscal and clinical goals established by the governing board. (2) "Certification" means the process used by the division to document a residential care provider's compliance with the statutory and regulatory requirements for operation as a residential care provider, including the issuance of a certificate if the residential care provider is found to comply with the requirements in this article. (3) "Conflict of interest" means activity of an individual (usually related to work or ownership) that is or runs the risk of being an oppositional interest to another interest or activity of the same individual thereby jeopardizing the ability of the individual to act in the best interest of one (1) of the activities. (4) "Consumer" means a primary consumer. (5) "Division" means the division of mental health and addiction. (6) "Managed care provider" means an organization: (A) that: (i) for mental health services, is defined under 42 U.S.C. 300x-2(c); (ii) provides addiction services; or (iii) provides children's mental health services; (B) that has entered into a provider agreement with the division under IC 12-21-2-7 to provide a continuum of care as defined in IC 12-7-2.1-83 in the least restrictive, most appropriate setting; and (C) that is operated by at least one (1) of the following: (i) A city, town, county, or other political subdivision of Indiana. (ii) An agency of Indiana or of the United States. (iii) A political subdivision of another state. (iv) A hospital owned or operated by: (AA) a unit of government; or (BB) a building authority that is organized for the purpose of constructing facilities to be leased to units of government. (v) A corporation incorporated under IC 23-7-1.1 (before its repeal August 1, 1991) or IC 23-17 . (vi) An organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. (vii) A university or college. (7) "Primary consumer" means an individual who has received or is receiving mental health or addiction services. (8) "Residential care provider" means an organization that the division has certified as fulfilling the statutory and regulatory requirements to be a residential care provider. (9) "Secondary consumer" means a family member, guardian, or health care decision maker for a primary consumer. (10) "Strategic plan" means a written summary of the governing board's future goals and objectives for the organization that provides a time-specified and systematic approach towards implementation, achievement, and methods of evaluation of the accomplishment of the stated goals and objectives. (Division of Mental Health and Addiction; 440 IAC 6-1-1 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1100; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3146; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR- 440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA ) Copy Rule 2 Success! Successfully copied the text of Rule 2 to the clipboard. If you experience issues pasting in Word; go to File > Options > Add-ins > Manage: “COM Add-ins” Go… > and uncheck “SLP Office Support” then click OK. You can paste the text of the document into MS Word. Please note that your settings may affect the formatting of the text. OK Error Something went wrong, and the text has not been copied to the clipboard. OK Rule 2. Certification of Residential Care Providers 440 IAC 6-2-1 Scope 440 IAC 6-2-2 Certification by the division 440 IAC 6-2-3 Organizational standards and requirements 440 IAC 6-2-4 Certification 440 IAC 6-2-5 Maintenance of certification 440 IAC 6-2-6 Notification of changes 440 IAC 6-2-7 Renewal of certification 440 IAC 6-2-8 Termination of certification 440 IAC 6-2-9 Notification of termination 440 IAC 6-2-10 Transfer of certification 440 IAC 6-2-1 Scope Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 1. (a) Community mental health centers, which are certified by the division under 440 IAC 4.1 , are deemed to also be certified as residential care providers. (b) Entities certified by the division as managed care providers under 440 IAC 4.3 are deemed to also be certified as residential care providers. (c) Entities certified by the division as having a regular certification as addiction services providers under 440 IAC 4.4-2-3 are deemed to also be certified as residential care providers. (Division of Mental Health and Addiction; 440 IAC 6-2- 1 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1104; filed Apr 30, 1997, 9:00 a.m.: 20 IR 2379; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3146; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR-440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR- 440200502RFA ) 440 IAC 6-2-2 Certification by the division Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 2. (a) Before an entity may operate a supervised group living facility, a semi-independent living program, a sub-acute stabilization facility, a transitional residential facility, or an alternative family for adults program, the entity must be certified by the division as one (1) of the following: (1) A managed care provider. (2) A community mental health center. (3) An addiction services provider with a regular certification. (4) A residential care provider under this article. (b) A residential care provider must apply separately for certification or licensure of the specific facility they intend to operate. (c) An organization that has applied for certification or has been certified must provide information related to services as requested by the division and must participate in the division's quality assurance program. An organization must respond to a request from the division as fully as it is capable. Failure to comply with a request from the division may result in the denial or termination of an organization's certification. (d) When an organization has demonstrated compliance with all applicable laws and regulations, including the specific criteria in this article, a certificate shall be issued and shall be posted in a conspicuous place in the facility open to consumers and the public. (Division of Mental Health and Addiction; 440 IAC 6-2-2 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1101; filed Apr 30, 1997, 9:00 a.m.: 20 IR 2379; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3146; errata filed Jan 6, 2003, 4:11 p.m.: 26 IR 1572; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR-440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR- 440200502RFA ) 440 IAC 6-2-3 Organizational standards and requirements Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 3. (a) The organization shall have a governing board. (b) The purpose of the governing board is to make policy and to assure the effective implementation of the policy. (c) The governing board shall meet the following criteria: (1) The governing board shall be composed of at least five (5) individuals. (2) At least one (1) member shall be a primary or secondary consumer. (3) At least one (1) member shall be licensed by the health professions bureau as a physician or health services professional in psychology. (d) The governing board shall meet on a regular basis. The duties of the governing board include the following: (1) Employ a chief executive officer for the organization. The chief executive officer shall have at least a master's degree and shall have demonstrated managerial experience in the mental health care or related field. (2) Evaluate the chief executive officer. Evaluations must be conducted at least every other year. (3) Establish and enforce prudent business and fiscal policies for the organization. (4) Develop and enforce written policies governing organization operations. (5) Develop and implement an ongoing strategic plan that identifies the priorities of the governing board and utilizes community input and consumer assessment of programs and services offered. (6) Assure that minutes of all meetings are maintained and accurately reflect the actions taken. (7) Develop and enforce policies and procedures regarding conflict of interest by both governing board members and organization employees. (8) Conduct an annual assessment, including the following: (A) A review of the business practices of the organization to ensure that: (i) appropriate risk management procedures are in place; (ii) prudent financial practices occur; (iii) there is an attempt to maximize revenue generation; and (iv) professional practices are maintained in regard to information systems, accounts receivable, and accounts payable. Deficiencies in the center's business practices shall be identified and a plan of corrective action implemented. (B) A review of the programs of the organization, assessing whether the programs are well utilized, cost effective, and clinically effective. Deficiencies in the organization's current program practices shall be identified and a plan of corrective action implemented. (e) The organization shall employ or contract for a professional services director who is licensed as a physician or health service professional in psychology and who is not the same person as the chief executive officer. (Division of Mental Health and Addiction; 440 IAC 6-2-3 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1101; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3147; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR-440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR- 440200502RFA ) 440 IAC 6-2-4 Certification Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 4. (a) Before commencing services, an applicant for certification as a residential care provider shall file an application with the division. The application shall contain the following: (1) A description of the organizational structure and mission of the applicant. (2) A description of services to be provided and how the organization will provide them. (3) A list of governing board members and executive staff. (4) Proof of general liability insurance coverage in the minimum amount of five hundred thousand dollars ($500,000) for bodily injury and property damage. (5) A copy of the applicant's procedures to ensure protection of resident rights and confidentiality. (6) The most recent audit of the residential care provider, which shall be prepared by an independent certified public accountant. (7) Copies of the current professional health provider license of a board member and the professional services director. (b) When the division determines that: (1) an application is satisfactory; and (2) the applicant has sufficient administrative and financial capacity to fulfill its proposed mission; the division shall issue certification to the applicant. Certification shall expire twenty-four (24) months after the issuance of the certification or, for an entity that is accredited, ninety (90) days after the expiration of the entity's accreditation. (Division of Mental Health and Addiction; 440 IAC 6-2-4 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1102; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3147; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR-440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR- 440200502RFA ) 440 IAC 6-2-5 Maintenance of certification Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 5. Maintenance of certification is dependent upon the following: (1) The organization shall purchase and maintain general liability insurance in the minimum amount of five hundred thousand dollars ($500,000) for bodily injury and property damage. (2) An audit of the financial operations of the organization shall be performed annually by an independent certified public accountant. (3) The organization shall have written policies and enforce these policies to support and protect the fundamental human, civil, constitutional, and statutory rights of each consumer. The organization shall give a written statement of rights to each consumer, and, in addition, the organization shall document that organization staff provides an oral explanation of these rights to each consumer. (4) The organization shall maintain compliance with required health, fire, and safety codes as prescribed by federal and state law. (5) The organization shall comply with federal and state law regarding residential care providers. (6) The residential care provider shall meet all the requirements regarding the specific facility for which they are certified or licensed. (Division of Mental Health and Addiction; 440 IAC 6-2-5 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1102; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3148; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR- 440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA ) 440 IAC 6-2-6 Notification of changes Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 6. An organization must notify the division, in writing, of any of the following: (1) Change in the location of the organization's operational site. (2) Change in the president or treasurer of the governing board. (3) Change in the chief executive officer of the organization or professional services director. (4) Substantial change in the primary program focus. (5) The initiation of bankruptcy proceedings. (6) The documented violation of health, fire, or safety codes as prescribed by federal and state law. (7) The documented violation of the rights of an individual who is a client of the residential provider. (Division of Mental Health and Addiction; 440 IAC 6-2-6 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1102; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3148; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR- 440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA ) 440 IAC 6-2-7 Renewal of certification Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 7. (a) An organization shall submit a request for recertification, including the following: (1) Proof of liability insurance in the amount required by the division. (2) Proof of compliance with applicable health, fire, and safety codes as prescribed by federal and state law. (3) Copy of the most recent annual audit and the management letter. (4) Copies of current professional health provider license of a board member and the professional services director. (b) The division may require the applicant to resolve any problems identified by the division before the division issues a renewal certificate. (c) When a request for renewed certification is deemed to be complete by the division and the applicant has taken any action that is deemed necessary by the division, the division shall issue a new certification. The renewed certification shall expire twenty-four (24) months after the issuance of a renewal certification by the division or, for an entity that is accredited, ninety (90) days after the expiration of the entity's accreditation. (Division of Mental Health and Addiction; 440 IAC 6-2-7 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1103; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3148; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR- 440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA ) 440 IAC 6-2-8 Termination of certification Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 8. The division may terminate certification issued under this article upon the division's investigation and determination of the following: (1) A substantive change in the operation of the organization. (2) Failure to comply with this article. (3) That the physical safety of the consumers or staff of the organization is compromised by a physical or sanitary condition of the organization or of a physical facility of the organization. (4) Violation of a federal or state statute, rule, or regulation in the course of the operation of the organization or its facilities. (Division of Mental Health and Addiction; 440 IAC 6-2-8 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1103; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3149; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR- 440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA ) 440 IAC 6-2-9 Notification of termination Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 9. The division shall notify the Indiana department of administration that the organization's certification has been terminated so that any other state agency having a contract with the organization may be notified of the division's termination of the organization's certification. (Division of Mental Health and Addiction; 440 IAC 6-2-9 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1103; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; filed Jun 10, 2002, 2:32 p.m.: 25 IR 3149; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR- 440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR-440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA ) 440 IAC 6-2-10 Transfer of certification Authority: IC 12-21-2-3 Affected: IC 12-21-2-7 ; IC 12-22-2 Sec. 10. A organization may not transfer its certification to another entity. (Division of Mental Health and Addiction; 440 IAC 6-2-10 ; filed Dec 11, 1995, 3:00 p.m.: 19 IR 1103; readopted filed May 10, 2001, 2:30 p.m.: 24 IR 3235; readopted filed Apr 7, 2008, 3:40 p.m.: 20080507-IR-440070745RFA ; readopted filed Aug 11, 2014, 11:21 a.m.: 20140910-IR- 440140240RFA ; readopted filed Nov 9, 2020, 3:09 p.m.: 20201209-IR-440200502RFA )