Iowa 2025-2026 Regular Session

Iowa Senate Bill SF535

Introduced
3/5/25  

Caption

A bill for an act relating to nursing facility change of ownership applications.

Impact

One significant amendment in SF535 is the increase of the escrow account requirement from two to four months to ensure the financial viability of nursing facilities during ownership transitions. This change aims to prevent new owners from making financially detrimental decisions that could compromise the quality of care and safety for residents. Additionally, DIAL will not approve any ownership changes deemed to weaken the facility's financial state in the long term or pose public health risks, thereby reinforcing the state's commitment to resident welfare.

Summary

Senate File 535 (SF535) proposes new regulations regarding change of ownership applications for nursing facilities in Iowa. The bill mandates that the Department of Inspections, Appeals, and Licensing (DIAL) must thoroughly assess the potential impacts on the health, safety, welfare, and rights of residents prior to approving any change in ownership. The applicant is required to submit detailed documentation demonstrating financial stability and compliance with relevant laws, ensuring that new owners can maintain adequately safe and supportive environments for residents.

Contention

The bill also requires DIAL to publish a report on its website detailing the rationale behind its decisions regarding ownership applications, including a comparative analysis of past decisions. This transparency is intended to foster accountability but may also lead to debates about the processes and benchmarks DIAL uses to evaluate applicants. Potential points of contention could arise around the extent to which these regulations could either support or hinder the ability of facilities to change ownership, balancing between maintaining care standards and allowing for operational flexibility.

Companion Bills

No companion bills found.

Previously Filed As

IA HF2585

A bill for an act relating to health care facilities, including joint training sessions and review of certain citations for nursing facilities, and exceptions to on-site inspections of health care facilities following complaints. (Formerly HSB 691.)

IA HF2317

A bill for an act relating to the requirements for authorized electronic monitoring in nursing facilities, and providing penalties.(Formerly HF 537.)

IA HSB691

A bill for an act relating to health care facilities, including joint training sessions and review of certain citations for nursing facilities, and exceptions to on-site inspections of health care facilities following complaints.(See HF 2585.)

IA HF2470

A bill for an act relating to the requirements for authorized electronic monitoring in nursing facilities, and providing penalties.

IA SF2304

A bill for an act relating to oversight for long-term care facilities, providing penalties, making an appropriation, and including effective date and retroactive applicability provisions.

IA HF685

A bill for an act relating to health care services and financing, including nursing facility licensing and financing and the Medicaid program including third-party recovery and taxation of Medicaid managed care organization premiums. (Formerly HF 525, HSB 177.) Effective date: 07/01/2023.

IA HF537

A bill for an act relating to the requirements for authorized electronic monitoring in nursing facilities, and providing penalties.(See HF 2317.)

IA SF567

A bill for an act relating to health care services and financing including nursing facility licensing and financing and the Medicaid program including third-party recovery and taxation of Medicaid managed care organization premiums, and providing for licensee discipline.(Formerly SF 462, SSB 1167.)

IA SF2354

A bill for an act relating to the transition of behavioral health services from a mental health and disability services system to a behavioral health service system, and the transfer of disability services to the division of aging and disability services of the department of health and human services, making appropriations, and including effective date provisions.(Formerly SSB 3146; See SF 2420.)

IA HF2509

A bill for an act relating to the transition of behavioral health services from a mental health and disability services system to a behavioral health service system, and the transfer of disability services to the division of aging and disability services of the department of health and human services, making appropriations, and including effective date provisions.(Formerly HSB 653; See HF 2673.)

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