OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sSB-559

AN ACT CONCERNING A PILOT PROGRAM FOR SMALL HOUSE NURSING HOMES.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

Department of Social Services

GF - See Below

Municipal Impact: None

Explanation

This bill requires the Department of Social Services (DSS) to establish a pilot program to help develop 10 small house nursing homes. DSS is to develop this program within existing resources. Such homes would be exempt from the current certificate of need (CON) process.

It is anticipated that DSS can establish the guidelines and criteria for such a pilot program with minimal additional costs. However, the bill does not define how the pilot program is to be developed. sHB 5021 (the biennial budget adjustment, as reported by the Appropriations Committee) contains no funding for this pilot program. Therefore it is unclear what DSS must do, beyond developing guidelines, to help establish such homes.

The bill specifies that the pilot should give priority to the conversion of existing homes into small homes. However, should the exemption from the CON process result in additional nursing homes being added to the existing services structure, an additional cost to the state may result if more Medicaid clients are placed. Currently, the average annualized cost for a nursing home bed is $80,000.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.