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A new rule will require nursing homes enrolled in Medicare or Medicaid to make disclosures about certain facility ownership, management and other operational information. The U.S. Department of Health and Human Services (HHS) published the rule on November 17, with lawmakers emphasizing that greater transparency in the operation and ownership of nursing homes will improve and protect quality of care. The rule will go into effect 60 days after publication.

HHS is finalizing its proposal that nursing homes be required to report to the Centers for Medicare & Medicaid Services (CMS) or the applicable state agency: (i) each member of the nursing home’s governing body; (ii) each person or entity who is an officer, director, member, partner, trustee, or managing employee of the nursing home; (iii) each person or entity who is an additional disclosable party (as defined in the rule); and (iv) the organizational structure of each disclosable party.

The rule further provides that the disclosed information will be made available to the public within one year. The exact manner of such publication has not yet been determined. This rule is particularly geared towards illuminating the role of private equity companies and real estate investment trusts in the operation of nursing homes.

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