AR HB1688

Requires assisted living facilities participating in Arkansas Medicaid to file annual cost reports with the Department of Human Services within 90 days of fiscal year end, and within 60 days of significant ownership, management, or financial changes.

Mandates cost reports include detailed accounting of all operating expenses, direct care costs, administrative expenses, room and board costs, and other specified information prepared according to generally accepted accounting principles using accrual accounting methods.

Authorizes the Department of Human Services to conduct desk reviews, desk audits, and onsite financial audits of facilities, with at least 50% of first-time filers and 25% of all facilities receiving comprehensive field audits at least every four years.

Imposes immediate withholding of all Medicaid payments and potential suspension of new Medicaid admissions for facilities that fail to file timely cost reports, obstruct inspections, refuse independent audits, or provide false or misleading information.

Establishes a $500 per violation monetary penalty for facilities 30 or more days overdue in filing reports, and authorizes termination of Medicaid certification and five-year exclusion from participation for material, substantial, or repeated noncompliance.