On July 21, 2023, the Division of Well being Care Entry and Data of the California Well being and Human Providers Company launched a Discover of Proposed Rulemaking (the “Proposed Rule”) with laws that may implement new monetary and possession transparency necessities for expert nursing services (“SNFs”) in California.
Senate Invoice 650, which was signed into legislation in October 2021 and codified at Part 128734.1 of the California Well being and Security Code, requires organizations that function, conduct, personal, handle, or keep a SNF to file annual consolidated monetary reviews with the Division, efficient for fiscal years ending on or after December 31, 2023. Underneath the statute, a corporation’s report should embody knowledge from all working entities, license holders, and associated events through which the group has an possession or management curiosity of 5 p.c or extra and that present any service, facility, or provide to the SNF.
The Proposed Rule implements Senate Invoice 650 and descriptions particular necessities for the submission of the annual consolidated monetary report, together with that it’s reviewed by an authorized public accountant and embody varied monetary statements, stability sheets, and statements of affected person census and affected person income by payer. The group additionally should undergo the Division a visible illustration of the group’s construction that features all (i) associated events through which the group has an possession or management curiosity of 5 p.c or extra and that present any service, facility, or provide to the SNF and (ii) unrelated events that present companies, services, or provides to the SNF or different services which are operated or owned by the group, and which are paid greater than $200,000.
Every report will likely be as a result of Division inside 4 months after the SNF’s fiscal 12 months finish and have to be accompanied by a certification signed by a duly licensed official of the SNF. If a SNF fails to file a required report, will probably be answerable for a civil penalty of $100 for every day after the due date, with a most annual civil penalty of $36,500.
The Division is accepting feedback on the Proposed Rule till September 5, 2023. The Proposed Rule could be efficient for fiscal years ending on or after December 31, 2023.
