The bill amends Section 23-17-65 of the General Laws regarding the licensing of healthcare facilities, introducing new requirements for transparency in ownership of nursing facilities. Operators are required to file detailed ownership information with the Department of Health, including the names and addresses of individuals and entities with interests in the facility's land, building, mortgages, and leases. The bill establishes penalties for operators who fail to provide this information or who knowingly submit false data, which may include fines of the greater of one million dollars ($1,000,000) or the amount of facility assets diverted to undisclosed interest holders, and may also require a financial audit at the operator's expense.

Additionally, the bill adds a new section, 23-17-12.12, which restricts nursing facilities from withdrawing equity or transferring assets that exceed three percent (3%) of their total reported annual revenue for patient care services without prior written approval from the director. Facilities must notify the licensing agency of such withdrawals by certified mail, and the director is required to make a determination to approve or disapprove a request for withdrawal within sixty (60) days of receipt of the written request. This legislation aims to enhance oversight and accountability in the healthcare sector, ensuring that ownership and financial activities of nursing facilities are transparent and regulated.

Statutes affected:
5426: 23-17-65