SEC. 1414. REPORTING OF EXPENDITURES.

Section- 1888 of the Social Security Act [42 U.S.C. 1395yy] is amended by adding at the end the following new subsection:

'[f] Reporting of Direct Care Expenditures-

'[1] IN GENERAL- For cost reports submitted under this title for cost reporting periods beginning on or after the date that is 3 years after the date of the enactment of this subsection, skilled nursing facilities shall separately report expenditures for wages and benefits for direct care staff [breaking out [at a minimum] registered nurses, licensed professional nurses, certified nurse assistants, and other medical and therapy staff].

'[2] MODIFICATION OF FORM- The Secretary, in consultation with private sector accountants experienced with skilled nursing facility cost reports, shall redesign such reports to meet the requirement of paragraph [1] not later than 1 year after the date of the enactment of this subsection.

'[3] CATEGORIZATION BY FUNCTIONAL ACCOUNTS- Not later than 30 months after the date of the enactment of this subsection, the Secretary, working in consultation with the Medicare Payment Advisory Commission, the Inspector General of the Department of Health and Human Services, and other expert parties the Secretary determines appropriate, shall take the expenditures listed on cost reports, as modified under paragraph [1], submitted by skilled nursing facilities and categorize such expenditures, regardless of any source of payment for such expenditures, for each skilled nursing facility into the following functional accounts on an annual basis:

'[A] Spending on direct care services [including nursing, therapy, and medical services].

'[B] Spending on indirect care [including housekeeping and dietary services].

'[C] Capital assets [including building and land costs].

'[D] Administrative services costs.

'[4] AVAILABILITY OF INFORMATION SUBMITTED- The Secretary shall establish procedures to make information on expenditures submitted under this subsection readily available to interested parties upon request, subject to such requirements as the Secretary may specify under the procedures established under this paragraph.'.