DHS updates nursing‑facility cost manual: occupancy, equipment cap and per‑bed value changes set for Aug. 1

Elizabeth Pittman of DHS presented an updated cost‑reporting manual for skilled nursing facilities that the department proposes to implement Aug. 1. The manual contains several substantive changes intended to reflect market conditions and post‑pandemic experience.

Key changes include creating three definitions of resident room types and increasing the per‑bed value for private and semi‑private rooms to incentivize reduced shared occupancy (an explicit response to pandemic health concerns). DHS will move from rebasing every three years to annual rebasing. The department increased the minor equipment maximum allowable from $500 to $2,500 and said it will monitor and may revisit that cap; DHS staff noted Medicare uses a $5,000 threshold. The minimum occupancy requirement was reduced to 65% with a planned annual increase of 5% until it reaches 75%.

DHS said it worked with the Arkansas Health Care Alliance on the changes and that the association generally agreed with the proposals. Representative Bentley and other members asked when the equipment cap would be reviewed and raised a separate question about residents’ personal allowance amounts; DHS said it will check federal rules governing personal allowance and report back.

The committee reviewed the manual and accepted the rule as reviewed without objection.