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Committee debates nursing-home reforms: 80% direct-care requirement and safeguards on private-equity ownership
Summary
Lawmakers debated two related proposals: a bill requiring nursing homes to spend at least 80% of revenue on direct patient care and legislation to impose financial safeguards and ban required arbitration for private-equity owners. Supporters pressed for protections against asset stripping and accountability; critics warned the measures could impose unintended constraints and urged rate increases instead.
Two high-profile bills addressing long-term care financing and ownership drew extended discussion in the Human Services Committee.
One bill would require nursing homes to spend no less than 80% of revenue on direct patient care. Senator Lesser said the bill spells out allowed costs and directs the commissioner of social services to oversee compliance; supporters argued the standard would ensure Medicaid and state funds flow to resident care rather than overhead or investor payouts. Senator Perlow, however, said the statutory definition of "direct care" as written may…
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