HB1445

House Bill 1445 requires assisted living facilities in Arkansas that participate or seek to participate in the state’s Medicaid program to file annual and event-driven cost reports with the Department of Human Services (DHS). The bill mandates that these reports adhere to generally accepted accounting principles and include detailed financial information, such as operating expenses, staffing data, owner-related party information, and direct care costs. DHS is authorized to review, audit, and inspect the financial records of these facilities, and may order independent audits to ensure compliance and financial transparency. Facilities must maintain their accounting records for at least three years. The bill provides DHS with the authority to impose sanctions, including the suspension of new Medicaid admissions, for non-compliance or failure to cooperate with reporting and auditing requirements. Importantly, the act states that these reporting requirements do not imply that the Arkansas Medicaid Program must reimburse facilities based on these costs.