SB 650 (Stern)

Skilled Nursing Facility Taxpayer Dollar Transparency Not Getting Our Money’s Worth Californians are paying more for nursing home care, for fewer residents, than ever before and we are not getting our money’s worth.  Despite spending nearly six billion dollars a year, complaints against facilities are at record highs and the care provided is often abysmal.  Nursing homes are using complex ownership structures to siphon their revenue to “related parties,” allowing corporate home offices to hide their profits and support facilities’ claims for yet more public money.  As public spending on nursing homes grows, so do shadowy side transactions between corporate nursing home chains and related parties.  Payments to related parties grew by 66 percent from fiscal years 2007 through 2015 and now exceed $1 billion annually.  Other vast sums of money are paid to associated companies that are not considered related parties because of loopholes in the law.