HB1445 Summary

• 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, within 60 days of significant ownership or financial changes, and within 60 days of department request.

• Mandates cost reports include detailed information on operating expenses, direct care costs, administrative expenses, payroll, property costs, audit reports, balance sheets, and any other information the department deems necessary for compliance and payment assessment.

• Requires facilities to follow generally accepted accounting principles, use accrual accounting methods, and maintain working trial balances for minimum 3 years; department may revise reporting instructions with 60 days' notice after consulting with industry representatives.

• Establishes comprehensive audit requirements including desk reviews and onsite audits, with at least 50% of first-time filers and 25% of all facilities receiving comprehensive field audits at least every 4 years, performed at department expense by qualified audit firms.

• Imposes penalties including $500 per violation for late filings, suspension of new Medicaid admissions, possible Medicaid decertification, exclusion from participation for 5 years, and immediate termination for filing false or misleading reports.