Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Nursing Facilities topic
No spam. Unsubscribe anytime.
Industry and operators urge panel to remove REIT ban from HB 96, warning it could halt new nursing facilities
Summary
Trilogy Management and nursing-facility advocates told the House Health Committee that language in House Bill 96 barring licensing for facilities that lease from REITs would block new development and restrict capital flows; they proposed an amendment to strip that prohibition and suggested narrower fixes to address poor operators.
Chairwoman Schmidt opened an informal hearing on House Bill 96, and witnesses representing skilled nursing operators argued the bill—s proposed restriction on leasing from real estate investment trusts (REITs) could stop needed construction and refinancing of nursing facilities.
Alex Foster, senior vice president of operations at Trilogy Management Services, told the committee Trilogy manages 31 Ohio campuses with about 1,800 skilled nursing beds and that the company—s Ohio facilities ‘‘hold an average CMS quality rating of 4.8 out of 5 stars’’ and ‘‘an overall CMS 5-star rating of 4.12.’’ He said the capital REITs supply has funded recent expansion and that ‘‘this unprecedented restriction would effectively halt new development’’ if enacted as written.
A separate testifier who conducted an analysis of REIT-leased facilities said research of 103 Ohio buildings showed REIT-owned facilities are not lower-performing than others and urged an amendment to HB 96 that would remove the blanket prohibition as it applies to skilled nursing. He also described three allied amendment priorities: removing a cap on private rooms to allow more private beds for Medicaid beneficiaries; preventing rate cuts tied to a change in acuity adjustment methodology; and directing the Department of Medicaid to develop a fair rental value capital-reimbursement system by 07/01/2027 for future review.
Committee members pressed witnesses on the Department of Health—s concerns about a few poor operators and on whether narrow statutory changes could address operator misconduct rather than banning all REIT-associated leases. The witnesses pointed to statutory safeguards enacted in recent budget bills (including House Bill 33 and later changes in Senate Bill 144) that require operator experience and impose quality-incentive penalties if ownership or management changes produce detrimental effects within 12 months.
No formal vote or committee action on the amendment was recorded during the hearing; witnesses said they are willing to work with the committee and the Department of Health to craft narrower language.
The committee will consider amendments to HB 96 as budget deliberations continue.
