CMS Issues Final Rule Requiring SNFs to Disclose Ownership, Management Informationfinal rule requiring skilled nursing facilities (SNFs) to disclose additional ownership and management information. Nursing homes must submit ownership disclosures within a year of the rule becoming effective.
One of the key elements of the new rule is the requirement for nursing homes to disclose information about individuals or entities providing administrative services, clinical consulting services, accounting or financial services, and policies or procedures for the facility's operations. This includes entities exercising financial control over the facility and those involved in leasing or subleasing real property to the nursing home.
As of last year, private equity firms had ownership in 5% of nursing homes while REITs in 9%, according to a report issued by the Department of Health and Human Services (HHS).
The Biden administration press release notes this move comes in response to growing concerns regarding the quality of care in nursing facilities, particularly those owned by private equity companies and other investment firms.
The American Health Care Association/National Center for Assisted Living "said while they support transparency and appreciate the Administration's efforts to assist families in making more informed decisions, more paperwork reporting will not drive quality." AHCA/NCAL added, "This has become a distraction from the real issues that impact the majority of providers, like Medicaid underfunding and workforce shortages. ... If we truly want to improve America's nursing homes, we need policymakers to prioritize investing in our caregivers and this chronically underfunded health care sector."
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