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SD 1836

An Act to address conflicts of interest in the use of temporary nursing agencies at skilled nursing facilities

194th Legislature (2025-2026) Introduced by Julian Cyr and 4 co-sponsors

The act tightens oversight of temporary nursing agencies by restricting procurement to SNFs owned by the same individuals and expanding related-party reporting.

House concurred
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Bill Summary · SD 1836

Summary of Senate Docket No. 1836 (SD 1836)

Title: An Act to address conflicts of interest in the use of temporary nursing agencies at skilled nursing facilities

Status: House concurred

Introduced: February 27, 2025

Filed: January 16, 2025 (Senate Docket No. 1836)

Sponsor: Dylan A. Fernandes (and co-petitioners)

Purpose and intent
- Establish tighter controls to address potential conflicts of interest involving temporary nursing agencies and ownership interests in skilled nursing facilities (SNFs) in Massachusetts.
- Strengthen regulatory oversight by requiring the Department of Public Health (DPH) to amend its rules governing temporary nursing agencies operating at SNFs, with a focus on ownership structures and related-party arrangements.

Key Provisions

1) Regulatory Amendments (DPH)
- DPH must amend the state regulations governing temporary nursing agencies that procure or provide temporary staffing at SNFs (current framework: 101 CMR 345).
- The amendments are to be made notwithstanding any contrary law.

2) Reporting Requirements
- Any individual or their family member, or a business entity under their operational control, that:
- holds 5% or more ownership of a temporary nursing agency, and
- also holds an operating license to establish or maintain a Massachusetts SNF
must file additional reporting.

3) Conflict of Interest Prohibition
- A temporary nursing agency owned by such an individual, family member, or entity may not procure or provide temporary staff to an SNF that is jointly owned by the same individual, family member, or entity.

4) Definition of Family Member
- The bill broadens “family member” to include a range of relations (e.g., spouse, domestic partner, parent, sibling, child, in-laws, grandparent, grandchild, etc.).

5) Stakeholder Consultation
- During the regulatory process, DPH must consult with:
- Massachusetts Senior Care Association, Inc. and
- 1199 SEIU United Healthcare Workers East.

6) Implementation Timeline
- DPH must complete the regulatory amendments and file for Emergency Adoption no later than 180 days after passage of the Act.

Affected Parties and Impacts

  • Temporary nursing agencies: Subject to enhanced disclosure and restricted from supplying staff to SNFs where ownership and SNF interests are held by the same parties.
  • Skilled nursing facilities: Potentially subject to changes in staffing procurement relationships to reduce perceived conflicts of interest.
  • Facility owners and operators: Any individual or entity with 5%+ ownership in a temp agency and SNF ownership could face new restrictions and reporting obligations.
  • Families and individuals with related ownership: Expanded reporting and oversight to identify related-party arrangements.

Regulatory Process and Timeline

  • Regulation change: Amend 101 CMR 345 (DPH).
  • Consultation: Engage with MA Senior Care Association and 1199 SEIU during rulemaking.
  • Emergency Adoption: Regulations may be filed for emergency adoption within 180 days of passage.

Legislative Status

  • Referred to the Committee on Public Health (February 27, 2025).
  • House concurred on February 27, 2025, indicating cross-chamber agreement on the measure’s approach.

Notes

  • The bill uses “Notwithstanding any special or general law” language to authorize regulatory changes outside normal statutory constraints.
  • This act would speed regulatory adoption via Emergency Adoption provisions, aiming to address potential conflicts of interest promptly.

Compiled from official sources — confirm details with the bill’s official record.

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