Existing law provides for the licensure and regulation of health facilities, including skilled nursing facilities, by the State Department of Public Health. Existing law requires the State Department of Health Care Services to contract with skilled nursing facilities that have been designated by the State Department of State Hospitals as institutions for mental disease to provide services to the residents. Under existing law, as long as contracts require institutions for mental disease to continue to be licensed as skilled nursing facilities, they are reimbursed at a specified rate. Existing law requires that rate to increase by 4.7% annually.
This bill would, effective July 1, 2014, require the reimbursement rate for services in those institutions for mental disease to increase by 3.5% annually.