Section 1792.9 Of Article 6. Reporting And Reserve Requirements From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 6.
1792.9
. (a) All providers shall file annually with the department a
financial report disclosing key financial ratios and other key
indicators in a form determined by the department.
(b) The department shall issue a "Key Indicators Report" form to
providers that shall be used to satisfy the requirements of
subdivision (a). The Key Indicators Report shall require providers to
disclose the following information:
(1) Operational data indicating the provider's average annual
occupancy by facility.
(2) Margin ratios indicating the provider's net operating margin
and net operating margin adjusted to reflect net proceeds from
entrance fees.
(3) Liquidity indicators stating both the provider's total cash
and investments available for operational expenses and the provider's
days cash on hand.
(4) Capital structure indicators stating the provider's dollar
figures for deferred revenue from entrance fees, net annual entrance
fee proceeds, unrestricted net assets, and annual capital
expenditure.
(5) Capital structure ratios indicating the provider's annual debt
service coverage, annual debt service coverage adjusted to reflect
net proceeds from entrance fees, annual debt service over revenue
percentage, and unrestricted cash over long-term debt percentage.
(6) Capital structure indicators stating the provider's average
age of facility calculation based on accumulated depreciation and the
provider's average annual effective interest rate.
(c) The department shall determine the appropriate formula for
calculating each of the key indicators included in the Key Indicator
Report. The department shall base each formula on generally accepted
standards and practices related to the financial analysis of
continuing care providers and entities engaged in similar
enterprises.
(d) Each provider shall file its annual Key Indicators Report
within 30 days following the due date for the provider's annual
report. If the Key Indicators Report is not received by the
department by the date it is due, the provider shall pay a one
thousand dollar ($1,000) late fee at the time the report is
submitted. The provider shall pay an additional late fee of
thirty-three dollars ($33) for each day the report is late beyond 30
days. For purposes of this section, a provider's Key Indicators
Report is not submitted to the department until the provider has paid
all accrued late fees.