Section 1793.13 Of Article 7. Offenses And Penalties From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 7.
1793.13
. (a) The department may require a provider to submit a
financial plan, if either of the following applies:
(1) A provider fails to file a complete annual report as required
by Section 1790.
(2) The department has reason to believe that the provider is
insolvent, is in imminent danger of becoming insolvent, is in a
financially unsound or unsafe condition, or that its condition is
such that it may otherwise be unable to fully perform its obligations
pursuant to continuing care contracts.
(b) A provider shall submit its financial plan to the department
within 60 days following the date of the department's request. The
financial plan shall explain how and when the provider will rectify
the problems and deficiencies identified by the department.
(c) The department shall approve or disapprove the plan within 30
days of its receipt.
(d) If the plan is approved, the provider shall immediately
implement the plan.
(e) If the plan is disapproved, or if it is determined that the
plan is not being fully implemented, the department may consult with
its financial consultants to develop a corrective action plan at the
provider's expense, or require the provider to obtain new or
additional management capability approved by the department to solve
its difficulties. A reasonable period, as determined by the
department, shall be allowed for the reorganized management to
develop a plan which, subject to the approval of the department, will
reasonably assure that the provider will meet its responsibilities
under the law.