On July 21, 2023, the Division of Well being Care Entry and Data of the California Well being and Human Companies Company launched a Discover of Proposed Rulemaking (the “Proposed Rule”) with rules 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 by 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 or not it’s reviewed by an authorized public accountant and embody numerous monetary statements, steadiness 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 by 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 providers, services, or provides to the SNF or different services which can be operated or owned by the group, and which can be paid greater than $200,000.

Every report can be as a result of Division inside 4 months after the SNF’s fiscal yr 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, it is going to 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.