New Jersey-2024-A1867-Introduced

An Act concerning nursing homes and amending P.L.1977, c.237.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.1977, c.237 (C.26:2H-33) is amended to read as follows:

2. Every nursing home operating in the State shall, within 90 days after the end of its fiscal year, file an annual report with the State Commissioner of Health. Such annual report shall be in such form and shall contain such information as shall be prescribed by the commissioner, including the following:

a. A balance sheet of the nursing home as of the end of such fiscal year, setting forth assets and liabilities at such date including all capital, surplus, reserve, depreciation and similar accounts;

b. A statement of operations of the nursing home for such fiscal year, setting forth all revenues, expenses, taxes, extraordinary items and other credits or charges;

c. The name and address of each of the following persons:

(1) The operator of the nursing home;

(2) Any person who, directly or indirectly, beneficially owns any interest in the land on which the nursing home is located;

(3) Any person who, directly or indirectly, beneficially owns any interest in the building in which the nursing home is located;

(4) Any person who, directly or indirectly, beneficially owns a [10%] five percent or greater interest in any mortgage, note, deed of trust or other obligation secured in whole or in part by the land on which or building in which the nursing home is located;

(5) Any person who directly or indirectly, has any interest as lessor or lessee in any lease or sublease of the land on which or the building in which the nursing home is located;

(6) Any person who, directly or indirectly, beneficially owns a [10%] five percent or greater interest in any mortgage, note, deed of trust or other obligation which, although not secured by the land on which or building in which the nursing home is located, is considered an outstanding liability on the books of the nursing home and was executed to finance directly or indirectly the purchase of the nursing home, land, building, lease or sublease pertaining thereto;

(7) any person who owns or operates a sister company, holding company, or parent company, or who is a primary owner, a member of the board of trustees, or a member of the board of directors of the long-term care facility; and

(8) any person who has ownership interest in a private equity pool or who is primary owner, a member of the board of trustees, or a member of the board of directors of the long-term care facility

d. If the nursing home or any person named in response to subsection c. is a partnership, then the name and address of each partner;

e. If the nursing home or any person named in response to subsection c. is a corporation, other than a corporation whose shares are traded on a national securities exchange or a commercial bank, savings bank or savings and loan association, then the name and address of each officer, director, principal shareholder and controlling person of such corporation;

f. If any corporation named in response to subsection c. is a corporation whose shares are traded on a national securities exchange or which is a commercial bank, savings bank or savings and loan association, then the name and address of the principal executive officers and each director, principal stockholder and controlling person of said corporation;

g. If the nursing home paid or received an aggregate of $2,500.00 or more during the fiscal year in connection with transactions with any person named in response to subsections c., d., e., or f., or any affiliate of said person, a description of the transactions, naming the parties thereto and describing the relationships which require the transactions to be described and the goods, services, payment or other consideration received by each party to the transactions;

h. A consolidated financial statement for all financial transactions occurring within and outside the entire corporate organization, including vendor relationships and related financial filings.

(cf: P.L.1977, c.237, s.2)

2. Section 4 of P.L.1977, c.237 (C.26:2H-35) is amended to read as follows:

4. a. Any person, firm, association, partnership or corporation who fails to file a statement as required by this act or willfully files a false statement shall be liable to a penalty of not less than $10.00 nor more than $100.00 for each day that such failure continues or such false statement remains uncorrected. The penalties prescribed and authorized by this act shall be recovered in a summary civil proceeding brought in the name of the State in the Superior Court pursuant to "the penalty enforcement law" (N.J.S.2A:58-1 et seq.).

b. In addition to the penalties provided in subsection a. of this section, the Department of Health may curtail the admissions for new residents in the case of a person, firm, association, partnership or corporation who fails to file a statement as required by this act or willfully files a false statement until corrective action is taken by the violator.

(cf: P.L.1991, c.91, s.288)

3. This act shall take effect 90 days following the date of enactment.

STATEMENT

This bill adds items for nursing homes to submit to the Department of Health (department) in annual financial reports.

The bill amends existing law, which requires nursing homes to submit annual financial reports to the department by adding two additional items to be submitted to the department: (1) any person who owns or operates a sister company, holding company, or parent company, or who is a primary owner, a member of the board of trustees, or a member of the board of directors of the long-term care facility; and (2) any person who has ownership interest in a private equity pool or who is primary owner, a member of the board of trustees, or a member of the board of directors of the long-term care facility.

Under current law, the following is to be reported by a nursing home: (1) any person who, directly or indirectly, beneficially owns a 10 percent or greater interest in any mortgage, note, deed of trust or other obligation secured in whole or in part by the land on which or building in which the nursing home is located; and (2) Any person who, directly or indirectly, beneficially owns a 10 percent or greater interest in any mortgage, note, deed of trust or other obligation which, although not secured by the land on which or building in which the nursing home is located, is considered an outstanding liability on the books of the nursing home and was executed to finance directly or indirectly the purchase of the nursing home, land, building, lease or sublease pertaining thereto. The bill revises the above interest thresholds from 10 percent to five percent.

The bill also adds a new penalty provision to current law, which provides that the Department of Health may curtail the admissions for new residents in the case of a person, firm, association, partnership or corporation who fails to file a statement as required by P.L.1977, c.237 or willfully files a false statement until corrective action is taken by the violator.