Iowa Senate Bill SF526

Iowa 2025-2026 Regular Session

• Introduced: 3/5/25
• Refer: 3/5/25

Caption

A bill for an act relating to nursing facility revenue requirements.

Impact

Additionally, the bill introduces a mechanism for nursing facilities to apply for waivers concerning these requirements due to unexpected or exceptional circumstances. Both the Department of Inspections and Appeals (DIAL) and the office of the long-term care ombudsman will be responsible for determining whether the circumstances justifying a waiver exist. This component aims to provide some flexibility in compliance, recognizing that unforeseen situations may affect a facility’s ability to meet the required spending thresholds.

Summary

Senate File 526 establishes specific revenue requirements for nursing facilities in Iowa. Starting January 1, 2026, it mandates that in order for a nursing facility to acquire a new license or renew an existing one, the facility must spend at least 70% of its gross revenue from the previous year on goods and services directly related to resident care. Of this amount, at least 40% must specifically go to staff salaries for personnel who directly interact with residents. The intent behind these provisions is to ensure that facilities focus their expenditures on enhancing the quality of care provided to residents rather than diverting funds to other uses.

Contention

The implications of this bill could be significant for nursing facilities across Iowa, as tighter controls on revenue allocation to resident care may limit financial flexibility. Facilities with revenue exceeding 105% of their expenditures will also be required to remit the excess to the newly created Aging Iowans Care Fund, which raises further considerations regarding financial autonomy and operational viability. Some may view these changes positively as a step toward improving care standards, while others might argue they could impose undue constraints on facility operations, potentially impacting their ability to manage costs effectively.

Notable_points

The introduction of this bill reflects broader trends in long-term care regulatory efforts aimed at prioritizing resident welfare. It may provoke discussions around balancing regulatory standards with the operational realities faced by nursing facilities in a challenging financial landscape. Overall, SF526 navigates a complex intersection of financial regulations and caregiving quality, aiming to foster improved care through mandated financial commitments.