Skilled nursing facilities: disclosure of interests in business providing services.

Existing law requires each applicant for a license to operate a skilled nursing facility or intermediate care facility to disclose to the State Department of Public Health, among other things, the names and addresses of any person or organization, or both, having an ownership or control interest of 5% or more in a management company that operates, or is proposed to operate, the facility. Existing law requires an organization that operates, conducts, owns, or maintains a health facility, and the officers of the health facility, to make and file with the Office of Statewide Health Planning and Development, at the times as the office requires, a report that includes certain accounting information, including, but not limited to, a balance sheet detailing assets, liabilities, and net worth of the health facility, a statement of income, expenses, and operating surplus or deficit, and a statement of cashflows. Existing law provides civil penalties for a violation of that provision. As part of that report, effective January 1, 2020, this bill would require an organization that operates, conducts, owns, or maintains a skilled nursing facility to additionally report to the office whether the licensee, or a general partner, director, or officer of the licensee, has an ownership or control interest of 5% or more in a related party, as defined, that provides any service to the skilled nursing facility. The bill would specifically require the licensee under those circumstances to disclose all services provided to the skilled nursing facility, the number of individuals who provide that service at the skilled nursing facility, and any other information requested by the office. If goods, fees, and services collectively worth $10,000 or more per year are to be delivered to the skilled nursing facility, the bill would require the disclosure to include the related party's profit and loss statement and the Payroll-Based Journal public use data of the previous quarter for the skilled nursing facility's direct caregivers.