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This will be a classic case of the “Law of Unintended Consequences”.
Nursing homes, many owned by large corporations, will leave the state because they can’t make a decent return. Patients will be left with few choices and ultimately costs will increase.
The real answer is to control the large amount of money spent on a small group of very sick patients whose families insist they get the best care at the end of life, no matter what the patients have deemed. Nursing homes and physicians have no recourse but to provide wasteful treatment where it is unwarranted or risk serious reprisal from the medical oversight groups and attorneys.