Tag Archives: senior housing

Final Section 199A Regulations Provide Little Guidance for Skilled Nursing and Assisted Living Facilities

The final Section 199A regulations, which were promulgated on January 18, 2019, make several clarifications to the rules regarding specified service trades or businesses (“SSTB”). Over certain taxable income thresholds, SSTBs are not eligible for the Section 199A deduction. The performance of services in the field of health is an SSTB and is defined in Section 1.199A-5(b)(2) of the final regulations as “the provision of medical services by individuals, such as physicians, pharmacists, nurses, dentists, veterinarians, physical therapists, psychologists, another similar healthcare professionals performing services in their capacity as such.” The operation of health clubs or health spas, payment processing, or the research, testing, manufacture and sales of pharmaceuticals or medical devices are not within the field of health.

Many commentators to the proposed regulations, including Williams Parker, noted that many of the services provided by skilled nursing facilities and assisted living facilities are unrelated to health care, including housing, meals, laundry, security, and socialization activities. Unfortunately, Treasury declined to issue specific guidance as to whether the owners of skilled nursing, assisted living, and similar facilities are performing services within the field of health, and noted that the issue “requires a facts and circumstances inquiry that is beyond the scope of these final regulations.”

However, the final regulations added an example in Section 1.199A-5(b)(3)(ii) of a senior housing facility that is not engaged in the field of health. In the example, the senior housing facility provides its residents with standard domestic services (including housing management and maintenance, meals, laundry, and entertainment), but all medical and health services (including skilled nursing, physical and occupational therapy, speech-language pathology, medications, medical supplies and equipment, and ambulance transportation) are provided through separate professional healthcare organizations. All of the health and medical services are billed directly by the healthcare providers to the senior citizens even though the services are provided at the facility. Unfortunately, the final regulations do not address a scenario where the facility invoices the senior citizens for the health and medical services on behalf of the healthcare providers.

View the final regulations.

This post is one in a series of posts on the 199A regulations. 

Michael J. Wilson
mwilson@williamsparker.com
941-536-2043

Changes Affecting Continuing Care Communities

The Florida Legislature recently passed a bill, CS/HB 749, which implements certain changes in the operations of Continuing Care Communities (“CCCs”) in Florida, effective October 1, 2015.  Some of these changes include:

·     CCCs must be accredited by the Office of Insurance Regulation (“OIR”) without stipulations or conditions before OIR can waive statutory requirements.

·     Each CCC must establish a residents’ council created for the purpose of representing residents on matters set forth in the statutes.  Previously, the establishment of a residents’ council was optional.

·     Certain financial disclosures must be made to the president or chair of the residents’ counsel.

·     Several technical provisions are now required for resident contracts that are entered into on or after January 1, 2016.

These are just a few of the changes that are required for CCCs under the new laws.  The full text of the bill is available here.  For more information on how to make sure your CCC is ready for these new changes, please give us a call or email.

Elizabeth M. Stamoulis
Admitted only in New York
estamoulis@williamsparker.com
941-552-5546

New Law Limits Liability For Florida Skilled Nursing Facility Investors

On June 13th, 2014 Senate Bill 670 was signed by Governor Rick Scott. The new law will change and amend several aspects of the existing law pertaining to skilled nursing facilities. The changes are of particular importance to passive investors and those indirectly involved with skilled nursing homes. From now on:

Passive investors are not liable for damages under this law; Only the licensee, licensee’s management or consulting companies, and direct caregivers are subject to suit without an extra hearing; and Punitive damages are harder to obtain and require an extra hearing.

This law should make Florida a safer place for passive investors and companies that are indirectly involved with skilled nursing home facilities. The law in its entirety can be found here: http://laws.flrules.org/2014/83.

John L. Moore
jmoore@williamsparker.com
941-329-6620