The bill amends the Public Health Code of Michigan to enhance the regulation and oversight of health facilities and agencies. It introduces the definition of a "supplemental nursing services agency" while removing "health maintenance organization" from the existing definitions. The bill clarifies the definitions of various health care facilities, specifying that nursing homes do not include certain facilities like state correctional institutions or hospitals. Additionally, it establishes new protocols for nursing home surveyors, including mandatory criminal history checks and restrictions on their independence during training. The Department of Health is required to conduct visits to licensed health facilities every three years, with provisions for unannounced visits based on complaints, and allows facilities to request waivers for these visits under certain accreditation criteria.

Moreover, the bill outlines a detailed fee structure for health facility licenses and mandates periodic reporting from health facilities while ensuring patient confidentiality. It empowers the department to delegate survey functions to qualified health departments, with restrictions on those operating hospice services. The legislation also addresses Medicaid regulations by increasing per diem reimbursement rates for nursing homes and hospitals, funded through a quality assurance assessment collected from these facilities. It establishes a quality assurance assessment fund in the state treasury to support long-term care services and includes penalties for non-compliance. Lastly, supplemental nursing services agencies are required to be licensed, adhere to operational standards, and submit quarterly reports on their charges, aiming to improve the quality of care in nursing facilities while ensuring compliance with federal funding requirements.