Senator Dawn Euer has introduced legislation to increase financial transparency for nursing homes and their business partners, ensuring efficient use of public funds to improve patient care and staff situations.
“This bill really is about the stability of our nursing homes. I've heard from many sources recently that reimbursement rates need to be increased to maintain nursing facilities and improve patient care. I agree, but we are dumping money into this system. Senator EUER (Jamestown, 13, Newport) said.
A 2024 survey by the National Economic Research Bureau describes industry practices known as “tunneling.” Nursing facilities and other healthcare providers are to secretly converting payments for goods and services to businesses with financial interests. It is estimated that in 2019, 68% of nurses' profits were approved for nurses' benefits related to inflation prices.
The Financial Transparency Act for Nursing Homes (2025-S 0704) aims to end this practice in Rhode Island. We request these individuals or business institutions with detailed statements of such transactions made at these facilities and affidavits ensuring that the transactions are not made by these individuals or businesses in the possession of nursing and long-term care facilities. You will also need to report other basic financial information, such as balance sheets and cash flow statements. These reports are also accessible to the public.
More than $400 million in Rhode Island's 2025 fiscal year budget has been allocated to nursing homes and long-term care facilities.
“The bill carries the legacy of Senator Mary Elendgoodwin by demanding transparency from out-of-state for-profits that currently operate most of Rhode Island's nursing homes. These companies routinely inherit millions of taxpayer dollars to related party entities. Rhode Island is not a corporate profit system as tools to follow money and secure public funding are actually used to support safe staffing and high quality care.
In 2022, Rhode Island passed the law introduced by Senator Mary Elendgoodwin (2022-S 3034). This requires nursing home operators to report to all parties with direct or indirect ownership to the nursing home building, mortgage, trust, or lease. This information is made public upon request from the Ministry of Health. The EUER Senators bill will continue to improve transparency by expanding reporting rules to businesses.
“This bill is being opposed by representatives of the nursing home industry, but ultimately it needs to save the nursing home industry. Without more financial transparency and regulations for investor groups, private equity and business-owned nursing homes, those entities will take over all nursing homes and operate independents and nonprofits. Kathleen Gerald, advocate for better care in Rhode Island, said:
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