The bill amends Section 42-7.2-5 of the General Laws, which outlines the duties of the Secretary of the Executive Office of Health and Human Services (EOHHS). It replaces the term "Coordinate" with "Oversee and direct" regarding the administration and financing of healthcare benefits, human services, and systems of care. The bill introduces new responsibilities for the Secretary, including promoting fiscal integrity, transparency, and accountability within the state's healthcare system, and establishes a new chapter focused on these principles.

The bill mandates that reporting covered entities, such as hospitals, nursing facilities, federally qualified community health centers, and certified community behavioral health clinics, submit quarterly financial reports starting October 1, 2026. These reports must include detailed financial data, such as balance sheets, income statements, cash on hand, accounts payable and receivable, gross and net patient revenues, operating costs, and any other information 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.

The Secretary will review these reports to assess the financial status and capacity of each reporting covered entity, identifying any financial risks or imminent financial jeopardy. The Secretary is authorized to notify entities of any findings and may require corrective action plans to address identified risks. The bill clarifies that state agencies are not obligated to provide financial assistance to entities found to be in financial risk or imminent financial jeopardy. Additionally, the Secretary is empowered to promulgate rules and regulations to carry out the provisions of this chapter. The act will take effect upon passage.

Statutes affected:
8500: 42-7.2-5