The Connecticut State Legislature has introduced Senate Bill 11, aimed at reforming the reimbursement structure for healthcare facilities in the state. Introduced on March 6, 2025, the bill seeks to address issues related to fair rent allowances and cost efficiency adjustments for healthcare providers, particularly those facing financial challenges.

One of the key provisions of Senate Bill 11 is the establishment of a minimum allowable fair rent for facilities. Specifically, facilities with allowable fair rent below the twenty-fifth percentile of the state-wide average will be reimbursed at that threshold. This adjustment is intended to ensure that lower-performing facilities receive adequate financial support. Additionally, the bill stipulates that any facility with a rate of return on real property exceeding eleven percent will have its allowable fair rent capped at that rate, preventing excessive profits at the expense of state resources.

The bill also mandates that facilities financing or refinancing debt through bonds issued by the Connecticut Health and Education Facilities Authority must report the terms of such financing to the Commissioner of Social Services. This provision aims to ensure transparency and allow for adjustments to the facility's fair rent based on any financial benefits derived from these transactions.

Another significant aspect of Senate Bill 11 is the introduction of cost efficiency adjustments for indirect and administrative costs. Facilities that report costs below the state-wide median will receive adjustments, promoting fiscal responsibility and efficiency within the healthcare system.

The bill proposes a new schedule for rebasing costs, limiting adjustments to every two to four years, which could stabilize financial planning for healthcare facilities. However, there will be no inflation adjustments during rebasing years, a point that may spark debate among stakeholders concerned about rising operational costs.

Senate Bill 11 has generated discussions among lawmakers and healthcare advocates, with some praising its potential to enhance financial equity among facilities, while others express concerns about the implications of capping returns and the lack of inflation adjustments. Experts suggest that the bill could lead to improved financial health for struggling facilities, but caution that it may also create challenges for those with higher operational costs.

As the bill moves through the legislative process, its implications for Connecticut's healthcare landscape will be closely monitored, particularly regarding how it balances the needs of facilities with the state's fiscal responsibilities. The next steps will involve further debates and potential amendments as lawmakers seek to refine the bill before it is finalized.