AN ACT REQUIRING NURSING HOMES TO SPEND EIGHTY PER CENT OF REVENUE ON DIRECT PATIENT CARE.

SB 328 requires Connecticut nursing homes to allocate revenue so that administrative and general costs (e.g., management salaries, facility maintenance) do not exceed the state-wide median allowable cost for such expenses. This policy directly affects nursing home facilities receiving Medicaid reimbursement by limiting how much they can spend on non-patient care operations, thereby directing more funds toward direct patient care. The bill establishes specific cost categories (including direct care, indirect care, and administrative costs) and sets maximum allowable levels for administrative spending. It aims to ensure nursing homes prioritize resident care through structured cost reporting and Medicaid rate adjustments tied to quality metrics. The changes take effect July 1, 2026, with annual reporting requirements for facilities.