The proposed new rules help ensure the health, safety, and welfare of residents receiving services in state licensed
homes for the aged by still requiring providers to record, track, and correct as needed causes of adverse events to
residents. The requirement to report immediately to the state is burdensome to the providers by taking staff time away
from correcting issues and caring for residents. Most incidents reported to the state do not result in an investigation.
The state, under the proposed changes, will still have access to this information upon request.
9. Describe any rules in the affected rule set that are obsolete or unnecessary and can be rescinded.
This review was limited to incident reporting to provide regulatory relief and a full review was not conducted for
other rules that may be obsolete or unnecessary, as the department plans to conduct a comprehensive review at a later
Fiscal Impact on the Agency
Fiscal impact is an increase or decrease in expenditures from the current level of expenditures, i.e. hiring additional staff,
higher contract costs, programming costs, changes in reimbursements rates, etc. over and above what is currently
expended for that function. It does not include more intangible costs for benefits, such as opportunity costs, the value of
time saved or lost, etc., unless those issues result in a measurable impact on expenditures.
10. Please provide the fiscal impact on the agency (an estimate of the cost of rule imposition or potential savings
for the agency promulgating the rule).
The proposed rules will result in labor savings to the department. It is estimated that managers spend approximately
1 day a week reviewing submitted incident reports. There will be field staff labor savings too, as fewer special
investigations will be conducted that often do not result in a citation as the provider has already corrected the issue
prior to state staff arrival. It is estimated that hundreds of hours will be saved and shifted to other priorities such as
timely routine inspections. It is not estimated that these labor savings will result in any staff reductions at this time.
Currently there is 1 manager and 8 field inspectors for approximately 300 licensed homes for the aged in the state.
11. Describe whether or not an agency appropriation has been made or a funding source provided for any
expenditures associated with the proposed rules.
There are no new expenditures resulting from the proposed rules or impact on fees established in Part 201 of the
Code. Funding source for the program is through fees and GF/GP.
12. Describe how the proposed rules are necessary and suitable to accomplish their purpose, in relationship to the
burden(s) the rules place on individuals. Burdens may include fiscal or administrative burdens, or duplicative
The proposed rules are authorized under by MCL 333.20171 and there are no additional burdens placed on state
licensed homes for the aged, as these providers are already required to record, track, and correct. The savings for
providers is the elimination of immediate reporting to the state.
A. Despite the identified burden(s), identify how the requirements in the rules are still needed and reasonable
compared to the burdens.
It is important to require providers to record, track, and evaluate adverse outcomes to residents in an effort to correct
any related deficient practices to assure the health, safety, and welfare of residents.
Impact on Other State or Local Governmental Units
13. Estimate any increase or decrease in revenues to other state or local governmental units (i.e. cities, counties,
school districts) as a result of the rule. Estimate the cost increases or reductions for other state or local
governmental units (i.e. cities, counties, school districts) as a result of the rule. Include the cost of equipment,
supplies, labor, and increased administrative costs in both the initial imposition of the rule and any ongoing
There is no increase or decrease in revenues to other state or local governmental units.
14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school
district by the rules.
There are no additional responsibilities placed on any other governmental unit.
A. Describe any actions that governmental units must take to be in compliance with the rules. This section should
include items such as record keeping and reporting requirements or changing operational practices.