Section 45-06-13-06 - Liquidity1. A provider-sponsored organization shall have sufficient cash flow to meet its financial obligations as they become due and payable. 2. To determine whether the provider-sponsored organization meets the requirement in subsection 1, the department will examine the following: a. The provider-sponsored organization's timelilness in meeting current obligations; b. The extent to which the provider-sponsored organization's current ratio of assets to liabilities is maintained at a one to one ratio including whether there is a declining trend in the current ratio over time; and c. The availability of outside financial resources to the provider-sponsored organization. 3. If the department determines that a provider-sponsored organization fails to meet the requirement in subdivision a of subsection 2, the department will require the provider-sponsored organization to initiate corrective action and pay all overdue obligations. 4. If the department determines that a provider-sponsored organization fails to meet the requirement of subdivision b of subsection 2, the department will require the provider-sponsored organization to initiate corrective action to: a. Change the distribution of its assets; b. Reduce its liabilities; or c. Make alternative arrangements to secure additional funding to restore the provider-sponsored organization's current ratio to one to one. 5. If the department determines that a provider-sponsored organization fails to meet the requirement of subdivision c of subsection 2, the department will require the provider-sponsored organization to obtain funding from alternative financial resources. N.D. Admin Code 45-06-13-06
Effective August 1, 2000.General Authority: NDCC 26.1-01-07.6
Law Implemented: NDCC 26.1-01-07.6