2025 -- S 0704
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LC002269
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO HUMAN SERVICES -- NURSING HOME FINANCIAL TRANS PARENCY
ACT
Introduced By: Senators Euer, Urso, Appollonio, Gu, McKenney, Valverde, Lauria,
Kallman, Murray, and Ujifusa
Date Introduced: March 07, 2025
Referred To: Senate Health & Human Services
It is enacted by the General Assembly as follows:
SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby 1
amended by adding thereto the following chapter: 2
CHAPTER 8.16 3
NURSING HOME FINANCIAL TRANSPARENCY ACT 4
40-8.16-1. Short title. 5
This chapter shall be known and may be cited as the “Nursing Home Financial 6
Transparency Act”. 7
40-8.16-2. Definitions. 8
As used in this chapter, the following words and terms shall have the following meanings 9
unless the context shall clearly indicate another or different meaning or intent: 10
(1) “Covered facility” or “covered nursing facility” means any licensed nursing home or 11
long-term care facility in the State of Rhode Island. 12
40-8.16-3. Applicability. 13
This chapter applies to any individual or entity that receives payment from a covered 14
nursing facility, and: 15
(1) Directly or indirectly influences or directs the actions or policies of the covered nursing 16
facility; or 17
(2) Directly or indirectly influences, directs, or manages the finances, including setting the 18
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budget, of the covered nursing facility, including any person or entity that is entitled to receive 1
(directly or indirectly) five percent (5%) or more of any profits or revenue of the covered nursing 2
facility; or 3
(3) Directly or indirectly influences or directs day-to-day operations of the covered nursing 4
facility. 5
40-8.16-4. Implementation and compliance. 6
(a) The department of human services (the "department") shall establish rules, regulations 7
and procedures for the implementation of this chapter, including the format and timeline for the 8
submission of required information. 9
(b) The department shall monitor compliance with these reporting requirements and may 10
impose penalties for non-compliance, including fines or suspension of operating licenses. 11
40-8.16-5. Disclosure required. 12
On and after July 1, 2025, at the time of all reporting periods, any individual or entity that 13
has an ownership interest in a covered facility pursuant to § 40-8.16-4, shall submit to the 14
department the following information: 15
(1) The entity’s legal and doing business as (DBA) name, the state in which the entity is 16
incorporated, and the legal names of the owners of the entity along with their ownership 17
percentages; 18
(2) A balance sheet detailing the assets, liabilities, and equity of the entity; 19
(3) A statement of income, expenses, and operating surplus or deficit of the entity; 20
(4) A statement of cash flows from operating activities, investment activities, and financing 21
activities, which includes capital expenditures, amortization, and depreciation; and 22
(5) A detailed statement of the goods and services provided by the entity to the covered 23
nursing facility, including an affidavit that the entity has assessed the fair market value of the goods 24
and services it has provided to the covered nursing facility and that the goods and services provided 25
by the entity were traded at no more than fair market value. 26
40-8.16-6. Public disclosure. 27
All disclosed financial information shall be made available to the public in a manner that 28
protects the privacy of individual owners while ensuring transparency and accountability in the 29
financial operations of nursing facilities. 30
SECTION 2. This act shall take on July 1, 2025. 31
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO HUMAN SERVICES -- NURSING HOME FINANCIAL TRANSPARENCY
ACT
***
This act would mandate transparency in nursing home finances and would establish 1
procedures for compliance. 2
This act would take effect on July 1, 2025. 3
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LC002269
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