Massachusetts § 72FF - Cost trends and financial performance among skilled nursing facilities; annual examination and report

§ 72FF. Cost trends and financial performance among skilled nursing facilities; annual examination and report

Section 72FF. (a) The department, in consultation with the center for health information and analysis, the division of medical assistance, the executive office of aging and independence and the health policy commission, shall annually conduct an examination and report on cost trends and financial performance among skilled nursing facilities. The information shall be analyzed on an institution-specific and industry-wide basis. The examination shall aggregate information collected on multiple skilled nursing facilities that are owned and operated by a single owner.

(b) The examination and report shall include, but shall not be limited to collection and analysis of: (i) gross and net patient service revenues; (ii) other sources of operating and non-operating revenue; (iii) trends in relative price, payer mix, case mix, utilization and length of stay; (iv) affiliations with other health care providers, including, but not limited to, preferred clinical relationships and partnerships; (v) categories of costs, including, but not limited to, general and administrative costs, nursing and other labor costs and salaries, building costs, capital costs and other operating costs; (vi) total spending on direct patient care as a percent of total operating expenses; (vii) operating and total margin; (viii) occupancy rates and total resident population; and (ix) any other relevant measures of financial performance and service delivery the department deems necessary; provided, that these measures shall distinguish long-term residents from short-stay residents where possible.

(c) Annually, not later than December 1, the report and any policy recommendations shall be filed with the clerks of the house of representatives and the senate, the house and senate committees on ways and means and the joint committee on elder affairs.

(d) The department shall utilize ownership information submitted as part of the long-term care facility licensure determination process pursuant to section 71 to determine affiliations between skilled nursing facilities and other health care providers as required.