Report 2017-109 Recommendation Responses
Report 2017-109: Skilled Nursing Facilities: Absent Effective State Oversight, Substandard Quality of Care Has Continued (Release Date: May 2018)
Recommendation for Legislative Action
The Legislature should require nursing facilities to submit annually their related-parties' profit and loss statements to Health Care Services when total transactions exceed a specified monetary threshold. The purpose of these statements would be to assist Health Care Services in its audits.
Description of Legislative Action
Assembly Bill 1953 (Chapter 383, Statutes of 2018), effective January 1, 2020, requires an organization that operates, conducts, owns, or maintains a skilled nursing facility (SNF) to report to the Office of Statewide Health Planning and Development (OSHPD) about whether the licensee, or a general partner, director, or officer of the licensee, has an ownership or controls interest of 5 percent or more in a related party that provides any service to the SNF. Specifically, the licensee is required to disclose all services provided to the SNF, the number of individuals who provide that service at the SNF, and any other information requested by OSHPD. If goods, fees, and services collectively worth $10,000 or more per year are to be delivered to the SNF, the disclosure must include the related party's profit and loss statement and the Payroll-Based Journal public use data for the previous quarter for the SNF's caregivers.
- Legislative Action Current As-of: November 2018
California State Auditor's Assessment of 6-Month Status: Legislation Enacted
Description of Legislative Action
Assembly Bill 1953 (Wood) would require an organization that operates, conducts, owns or maintains a skilled nursing facility to report to the Office of Statewide Health Planning and Development about whether the licensee, or a general partner, director, or officer of the licensee, has an ownership or controls interest of 5 percent or more in a related party that provides any service to the skilled nursing facility. The bill would specifically require the licensee to disclose all services provided to the skilled nursing facility, the number of individuals who provide that service at the skilled nursing facility, and any other information requested by the office. If goods, fees, and services collectively worth $10,000 or more per year are to be delivered to the skilled nursing facility, the bill would require the disclosure to include the related party's profit and loss statement and the Payroll-Based Journal public use data for the previous quarter for the skilled nursing facility's direct caregivers. This information would be included on an existing annual report as of January 1, 2020.
- Legislative Action Current As-of: August 2018