Substitute House Bill No. 5357 proposes significant amendments to the regulations governing residential care homes (RCHs) in Connecticut, particularly concerning administrator salaries, fair rent, and reimbursement rates. The bill repeals subsection (i) of section 17b-340 and introduces a new base salary for administrators of RCHs with sixty beds or fewer, setting it at $75,000, which will be adjusted annually for inflation starting from the cost report year beginning October 1, 2025. Additionally, the bill modifies the criteria for determining allowable fair rent, ensuring that homes with fair rent below the twenty-fifth percentile will be reimbursed at that threshold. It also removes previous provisions related to inflation adjustments for rates and minimum patient days for rate computation, aiming to streamline the reimbursement process and enhance the financial stability of RCHs.

The bill further outlines the rate-setting process for RCHs under the Department of Social Services (DSS) for fiscal years ending June 30 from 2012 through 2023, allowing for rate increases based on compliance with medication administration regulations and documented capital improvements. Key insertions include provisions for rate increases for approved capital improvements and a minimum rate of return on real property. The bill also adjusts how DSS calculates annual inflation rates, replacing the previous method with a new index that reflects inflation over a shorter period. Notably, it increases the minimum allowable fair rent increase from $3.10 to $5.00 per day for fiscal year 2027 and mandates fair rent increases for new additions placed in service after October 1, 2023. Overall, the bill aims to ensure that RCHs can maintain financial viability while adhering to regulatory standards.