Bill
Bill > SF526
summary
Introduced
03/05/2025
03/05/2025
In Committee
03/05/2025
03/05/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to nursing facility revenue requirements. Beginning January 1, 2026, the bill prohibits the department of inspections, appeals, and licensing (DIAL) from approving a new license or renewing a license for a nursing facility unless the nursing facility spends a certain percentage of the nursing facility’s gross revenue for the immediately preceding calendar year on goods and services directly related to resident care as detailed in the bill, and remits the nursing facility’s gross revenue in excess of 105 percent of its expenditures to DIAL. The bill creates an aging Iowans care fund (fund) and requires DIAL to deposit all moneys received under the bill into the fund. The general assembly may appropriate moneys from the fund as the general assembly deems appropriate. The bill allows a nursing facility to apply with DIAL and the office of the long-term care ombudsman (ombudsman) for a waiver of the bill’s requirements due to an unexpected or exceptional circumstance which prevents the nursing facility from complying with the bill (exceptional circumstances). The bill requires DIAL and the ombudsman to make a determination if exceptional circumstances exist as alleged by the nursing facility. If both DIAL and the ombudsman determine exceptional circumstances exist, DIAL must grant the nursing facility a waiver of the bill’s requirements to the extent the exceptional circumstances prevented the nursing facility’s compliance. If DIAL, the ombudsman, or both, determine that exceptional circumstances do not exist, DIAL shall not grant a waiver to the nursing facility. The bill requires DIAL to adopt rules to implement the bill.
AI Summary
This bill establishes new financial requirements for nursing facilities in Iowa, beginning January 1, 2026. Specifically, nursing facilities must spend at least 70% of their gross revenue on resident care-related goods and services, including nursing staff salaries, physician services, medications, and care supplies, with a mandate that at least 40% of gross revenue be spent on salaries for staff directly providing resident care. If a nursing facility's gross revenue exceeds 105% of its expenses, the excess must be remitted to the Department of Inspections, Appeals, and Licensing (DIAL), which will deposit these funds into a newly created "aging Iowans care fund". The bill also provides a waiver mechanism where nursing facilities can apply to DIAL and the long-term care ombudsman for exemption from these requirements if they can demonstrate unexpected or exceptional circumstances preventing compliance. DIAL will not approve new licenses or renew existing licenses for nursing facilities that fail to meet these financial spending requirements. The general assembly will have the ability to appropriate funds from the aging Iowans care fund as they see fit. The bill aims to ensure that nursing facilities are directing a substantial portion of their revenues directly toward resident care and staff compensation.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Subcommittee: Rozenboom, Celsi, and Schultz. S.J. 491. (on 03/11/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF526 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF526.html |
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