Skilled nursing facilities: direct care spending requirement.
The implications of AB 2079 are significant, as it alters financial reporting and operational practices for skilled nursing facilities. Facilities must now comply with stringent spending and reporting requirements to ensure that the majority of their revenues support direct patient care. Additionally, the bill authorizes the State Department of Health Care Services to conduct audits every three years to enforce compliance, thereby holding facilities accountable for their spending practices. If a facility fails to meet the spending requirement, it must issue a pro rata dividend or credit to the state and affected payment sources.
Assembly Bill 2079, introduced by Assembly Member Wood, mandates a direct patient-related services spending requirement for skilled nursing facilities in California. Effective no later than July 1, 2023, the bill requires that a minimum of 85% of these facilities' total non-Medicare health revenues be allocated to direct patient-related services. These services encompass staffing, ancillary services, and support services aimed at enhancing resident care, thus fostering an improved healthcare environment for vulnerable populations.
Reactions to AB 2079 have been largely supportive from healthcare advocates and patient advocacy groups, who believe that the bill will enhance the quality of care provided to residents in skilled nursing facilities by ensuring that adequate funding is allocated for direct care services. Conversely, some healthcare operators have expressed concerns regarding the feasibility of meeting the new regulations and the potential financial burdens associated with compliance.
Notable points of contention around AB 2079 include the balance between regulatory oversight and the operational flexibility of skilled nursing facilities. Opponents argue that while the intent to improve care is commendable, the stringent requirements may lead to unintended consequences, such as financial strain on facilities, which could negatively impact their ability to serve patients effectively. This debate centers on finding an optimal approach that ensures quality care without hampering the operational capabilities of healthcare providers.