This bill amends Iowa's nursing facility revenue requirements by introducing new regulations that will take effect on January 1, 2026. It stipulates that the Department of Inspections, Appeals, and Licensing (DIAL) will not approve or renew licenses for nursing facilities unless they meet specific financial criteria. These criteria include spending at least 70% of their gross revenue from the previous year on goods and services directly related to resident care, and at least 40% on salaries for staff who provide direct care to residents. Additionally, if a facility's gross revenue exceeds 105% of its expenses, it must remit the excess to DIAL. The bill also establishes an Aging Iowans Care Fund to which these remittances will be deposited.

Furthermore, the bill allows nursing facilities to apply for a waiver from these requirements if they encounter unexpected or exceptional circumstances that hinder compliance. DIAL and the Office of the Long-Term Care Ombudsman will assess these waiver applications, and if they determine that exceptional circumstances exist, they may grant a waiver to the extent necessary. The bill mandates DIAL to adopt rules to implement these new provisions effectively.

Statutes affected:
Introduced: 135C.2, 135C.6