HF 4480

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/13/2024 12:49pm

A bill for an act
relating to human services; increasing nursing facility transparency in
related-organization transactions; repealing duplicative nursing facility rate setting
legislative report; amending Minnesota Statutes 2022, section 256R.08, subdivision
1, by adding a subdivision; repealing Minnesota Statutes 2022, section 256R.18.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 256R.08, subdivision 1, is amended to read:

Subdivision 1.

Reporting of financial statements.

(a) No later than February 1 of each
year, a nursing facility must:

(1) provide the state agency with a copy of its deleted text begin audited financial statements or its deleted text end working
trial balance;

new text begin (2) provide the state agency with a copy of its audited financial statements for each year
an audit is conducted;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end provide the state agency with a statement of ownership for the facility;

deleted text begin (3) deleted text end new text begin (4) new text end provide the state agency with separate, audited financial statements deleted text begin or deleted text end new text begin and new text end working
trial balances for every other facility owned in whole or in part by an individual or entity
that has an ownership interest in the facility;

new text begin (5) provide the state agency with information regarding whether the licensee or a general
partner, director, or officer of the licensee has an ownership or controlling interest of five
percent or more in a related organization that provides any services, facilities, or supplies
to the nursing facility;
new text end

deleted text begin (4) deleted text end new text begin (6) new text end upon request, provide the state agency with separate, audited financial statements
deleted text begin or deleted text end new text begin and new text end working trial balances for every organization with which the facility conducts business
and which is owned in whole or in part by an individual or entity which has an ownership
interest in the facility;

deleted text begin (5) deleted text end new text begin (7) new text end provide the state agency with copies of leases, purchase agreements, and other
documents related to the lease or purchase of the nursing facility; and

deleted text begin (6) deleted text end new text begin (8) new text end upon request, provide the state agency with copies of leases, purchase agreements,
and other documents related to the acquisition of equipment, goods, and services which are
claimed as allowable costs.

new text begin (b) If the licensee or the general partner, director, or officer of the licensee has an interest
as described in paragraph (a), clause (5), the licensee must disclose all services, facilities,
or supplies provided to the nursing facility; the number of individuals who provide services,
facilities, or supplies at the nursing facility; and any other information requested by the state
agency.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Audited financial statements submitted under deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin and (b)
new text end must include a balance sheet, income statement, statement of the rate or rates charged to
private paying residents, statement of retained earnings, statement of cash flows, notes to
the financial statements, audited applicable supplemental information, and the public
accountant's report. Public accountants must conduct audits in accordance with chapter
326A. The cost of an audit must not be an allowable cost unless the nursing facility submits
its audited financial statements in the manner otherwise specified in this subdivision. A
nursing facility must permit access by the state agency to the public accountant's audit work
papers that support the audited financial statements submitted under deleted text begin paragraph deleted text end new text begin paragraphs new text end
(a) new text begin and (b) new text end .

deleted text begin (c) deleted text end new text begin (d) new text end Documents or information provided to the state agency pursuant to this subdivision
must be public unless prohibited by the Health Insurance Portability and Accountability
Act or any other federal or state regulation. Data, notes, and preliminary drafts of reports
created, collected, and maintained by the audit offices of government entities, or persons
performing audits for government entities, and relating to an audit or investigation are
confidential data on individuals or protected nonpublic data until the final report has been
published or the audit or investigation is no longer being pursued actively, except that the
data must be disclosed as required to comply with section 6.67 or 609.456.

deleted text begin (d) deleted text end new text begin (e) new text end If the requirements of paragraphs (a) deleted text begin and deleted text end new text begin , new text end (b) new text begin , and (c) new text end are not met, the
reimbursement rate may be reduced to 80 percent of the rate in effect on the first day of the
fourth calendar month after the close of the reporting period and the reduction must continue
until the requirements are met.

new text begin (f) Licensees must provide the information required in this section to the commissioner
in a manner prescribed by the commissioner.
new text end

new text begin (g) For purposes of this section, "related organization" has the meaning given in section
256R.02, subdivision 43.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 256R.08, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Notice of costs associated with leases, rent, and use of land or other real
property by nursing homes. new text end

new text begin (a) Nursing homes must annually report to the commissioner,
in a manner determined by the commissioner, their cost associated with leases, rent, and
use of land or other real property and any other related information requested by the state
agency.
new text end

new text begin (b) A nursing facility that violates this subdivision is subject to the penalties and
procedures under section 256R.04, subdivision 7.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 256R.18, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 24-05196

256R.18 REPORT BY COMMISSIONER OF HUMAN SERVICES.

(a) Beginning January 1, 2019, the commissioner shall provide to the house of representatives and senate committees with jurisdiction over nursing facility payment rates a biennial report on the effectiveness of the reimbursement system in improving quality, restraining costs, and any other features of the system as determined by the commissioner.

(b) This section expires January 1, 2026.