California Department of Public Health Proposes to Increase SNF Licensing Fees

The California Department of Public Health is proposing to increasing skilled nursing facility licensing fees for 2017-18. State law requires the California Department of Public Health to publish the proposed licensing fee report for every category of facility, clinic or agency, as well as proposed fees for licensed Nursing Home Administrators, on February 1 of each year. This year, the report was released in March. The methodology for developing appropriate licensing fees is prescribed in law, and must be approved each year through the Legislative budget process.

In 2017-18, skilled nursing facilities are likely to see a significant increase in the per bed fee: from $527.51 for State fiscal Year 2016-17 to $606.17 for 2017-18. The fee increase is largely based on increased salary costs for the state’s contract with Los Angeles County, as well as for funding internal program Performance Measurement and Quality Improvement. A very small portion of the fee ($3.39 per bed) will be used to provide additional funding for the State Long-Term Care Ombudsman Program ($400,000). Overall program funding for the department is proposed to increase by $4,249,000.

The 2017-18 Annual Fee Report can be found at the following link:

To reference the proposed increases for all facility categories, please refer to page 7 of the Annual Fee Report.

In addition to the per/bed licensing fee, there is also a modest increase proposed for some Nursing Home Administrator fees. Please refer to page 9 of the fee report to reference these changes.