CT HB05451

For-profit chronic and convalescent nursing homes receiving state funding must include profit and loss statements in annual cost reports for related parties paid $10,000 or more annually for goods, fees, and services.

Related party profit and loss statements must detail actual costs of goods and services purchased, fees paid, and any mark-ups, profits, or administrative charges associated with those purchases.

"Related party" is defined to include companies connected to nursing homes through family association, common ownership, control, or business association with facility owners, operators, or officials.

Effective July 1, 2012, nursing homes must submit these cost reports to the Commissioner of Social Services by December 31 annually, with penalties of up to 10 percent rate reduction for late filing.