The proposed bill introduces the "Nursing Home Financial Transparency Act" as a new chapter in Title 40 of the General Laws concerning Human Services. This act mandates transparency in the financial operations of nursing homes and long-term care facilities in Rhode Island. It defines "covered facilities" as any licensed nursing home or long-term care facility in the state and outlines the applicability of the act to individuals or entities that influence or manage the finances of these facilities.

The Department of Human Services is tasked with establishing rules, regulations, and procedures for compliance, including the format and timeline for the submission of required information. The department will also monitor compliance with these reporting requirements and may impose penalties for non-compliance, including fines or suspension of operating licenses.

Starting July 1, 2025, the act requires individuals or entities with ownership interests in covered facilities to submit detailed financial information to the Department of Human Services. This includes the entity's legal and doing business as (DBA) name, the state of incorporation, the legal names of the owners along with their ownership percentages, a balance sheet detailing assets, liabilities, and equity, a statement of income, expenses, and operating surplus or deficit, a statement of cash flows from various activities, and a detailed account of goods and services provided, including an affidavit regarding the fair market value of those goods and services.

All disclosed financial information will be made available to the public in a manner that protects the privacy of individual owners while ensuring transparency and accountability in the financial operations of nursing facilities.