2025 -- S 0704

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LC002269

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO HUMAN SERVICES -- NURSING HOME FINANCIAL TRANSPARENCY

ACT

     Introduced By: Senators Euer, Urso, Appollonio, Gu, McKenney, Valverde, Lauria,
Kallman, Murray, and Ujifusa

     Date Introduced: March 07, 2025

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

amended by adding thereto the following chapter:

CHAPTER 8.16

NURSING HOME FINANCIAL TRANSPARENCY ACT

     40-8.16-1. Short title.

     This chapter shall be known and may be cited as the “Nursing Home Financial

Transparency Act”.

     40-8.16-2. Definitions.

     As used in this chapter, the following words and terms shall have the following meanings

unless the context shall clearly indicate another or different meaning or intent:

     (1) “Covered facility” or “covered nursing facility” means any licensed nursing home or

long-term care facility in the State of Rhode Island.

     40-8.16-3. Applicability.

     This chapter applies to any individual or entity that receives payment from a covered

nursing facility, and:

     (1) Directly or indirectly influences or directs the actions or policies of the covered nursing

facility; or

     (2) Directly or indirectly influences, directs, or manages the finances, including setting the

budget, of the covered nursing facility, including any person or entity that is entitled to receive

(directly or indirectly) five percent (5%) or more of any profits or revenue of the covered nursing

facility; or

     (3) Directly or indirectly influences or directs day-to-day operations of the covered nursing

facility.

     40-8.16-4. Implementation and compliance.

     (a) The department of human services (the "department") shall establish rules, regulations

and procedures for the implementation of this chapter, including the format and timeline for the

submission of required information.

     (b) The department shall monitor compliance with these reporting requirements and may

impose penalties for non-compliance, including fines or suspension of operating licenses.

     40-8.16-5. Disclosure required.

     On and after July 1, 2025, at the time of all reporting periods, any individual or entity that

has an ownership interest in a covered facility pursuant to § 40-8.16-4, shall submit to the

department the following information:

     (1) The entity’s legal and doing business as (DBA) name, the state in which the entity is

incorporated, and the legal names of the owners of the entity along with their ownership

percentages;

     (2) A balance sheet detailing the assets, liabilities, and equity of the entity;

     (3) A statement of income, expenses, and operating surplus or deficit of the entity;

     (4) A statement of cash flows from operating activities, investment activities, and financing

activities, which includes capital expenditures, amortization, and depreciation; and

     (5) A detailed statement of the goods and services provided by the entity to the covered

nursing facility, including an affidavit that the entity has assessed the fair market value of the goods

and services it has provided to the covered nursing facility and that the goods and services provided

by the entity were traded at no more than fair market value.

     40-8.16-6. Public disclosure.

     All disclosed financial information shall be made available to the public in a manner that

protects the privacy of individual owners while ensuring transparency and accountability in the

financial operations of nursing facilities.

     SECTION 2. This act shall take on July 1, 2025.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES -- NURSING HOME FINANCIAL TRANSPARENCY

ACT

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     This act would mandate transparency in nursing home finances and would establish

procedures for compliance.

     This act would take effect on July 1, 2025.

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