Division of the Budget Landon State Office Building Phone: (785) 296-2436 900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov Topeka, KS 66612 http://budget.kansas.gov Adam C. Proffitt, Director Laura Kelly, Governor Division of the Budget February 5, 2025 The Honorable Beverly Gossage, Chairperson Senate Committee on Public Health and Welfare 300 SW 10th Avenue, Room 142-S Topeka, Kansas 66612 Dear Senator Gossage: SUBJECT: Fiscal Note for SB 82 by Senate Committee on Public Health and Welfare In accordance with KSA 75-3715a, the following fiscal note concerning SB 82 is respectfully submitted to your committee. SB 82 would require the Kansas Department for Aging and Disability Services (KDADS) to provide a physical waiver to any rural emergency hospitals that meet the criteria contained in the bill, allowing them to transition up to ten beds from swing beds to Skilled Nursing Facility (SNF) beds. Eligible hospitals would be required to be registered rural emergency hospitals and to have been registered hospitals before being registered rural emergency hospitals. Eligible hospitals would also be required to have previously provided SNF treatments or swing beds. KDADS indicates that enactment of SB 82 would have a negligible fiscal effect on the agency. KDADS is aware of only one Rural Emergency Hospital that meets the criteria to request the physical environment waiver. The bill would have no impact on providers unless the Centers for Medicare and Medicaid Services would allow for this newly created entity to be certified for Title 18 and Title 19 services. The bill could increase Medicare or Medicaid payments for these ten skilled nursing facility beds. KDADS has not had regulatory oversight over this facility and does not have information on the utilization of the long-term beds in the facility before the transition to Rural Emergency Hospital. Granting the waiver from the physical environment standards for a facility that meets the requirements of SB 82 would allow the provider to continue providing long-term care services as it did before the transition from a Critical Access Hospital to a Rural Emergency Hospital. Sincerely, Adam C. Proffitt Director of the Budget cc: Leigh Keck, KDADS