The bill amends Section 35-4-27 of the General Laws to exempt the Health Care Entity Fiscal Integrity, Transparency and Accountability Act from the requirement that indirect cost recoveries of fifteen percent (15%) of funds from restricted receipt accounts be recorded as general revenues in the general fund.

Additionally, the bill introduces the Health Care Entity Fiscal Integrity, Transparency, and Accountability Act, which requires certain healthcare entities, referred to as "reporting covered entities," to submit quarterly financial reports to the Executive Office of Health and Human Services (EOHHS) beginning October 1, 2026. These reports must include detailed financial information such as balance sheets, income statements, cash on hand, accounts payable and receivable, gross and net patient revenues, operating costs, and any other information as required by the secretary. The reports must be signed by the chief financial officer or an authorized financial signatory and include an attestation to the truthfulness of the information provided.

The bill establishes penalties for non-compliance, including fines of five hundred dollars ($500) per day for each business day a report is late without good cause. Fines collected will be deposited into a restricted receipt account created within the general fund, known as the health care entity fiscal integrity, transparency, and accountability account, which will be used to support the provisions of this chapter.

The act emphasizes the promotion of fiscal integrity, transparency, and accountability in the state's healthcare system and allows the secretary of EOHHS to promulgate rules and regulations necessary for its implementation.

Statutes affected:
2097: 35-4-27, 42-7.2-5