The problem is that facilities aren't going to reach into their pockets and provide better staffing if they aren't incentivised to do so.
Nursing should be billed separately, but it's not.
The fines proposed would indeed be pretty steep, but there wouldn't be longer wait times because nurses would go on and take more patients (like we do now) thus, triggering the fine. ( which honestly I don't really have an opinion about)
If nurses had fewer patients we could actually do the things we were taught to do. Hospital acquired infections would go down because we'd be able to catch things before they become problems, take all the time required to maintain asepsis, etc.
Patients would have better outcomes. We could educate until they understand. We could identify barriers they are likely to encounter at home and limit the re-admission risk.
So many of the above would result in fewer penalties for the hospitals, but even just explaining it the way I'm trying to has never so much as raised an eyebrow.
I don't see how to improve staffing without a law stating they have to do it.