S T A T E O F N E W Y O R K
________________________________________________________________________
7993
2015-2016 Regular Sessions
I N A S S E M B L Y
June 3, 2015
___________
Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Health
AN ACT to amend the public health law, in relation to rates of payment
to residential health care facilities based on the historical costs to
the owner
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph (d) of subdivision 2-a of section 2808 of the
2 public health law, as amended by section 52 of part B of chapter 57 of
3 the laws of 2015, is amended to read as follows:
4 (d) For facilities granted operating certificates on or after March
5 tenth, nineteen hundred seventy-five, recognition of real property costs
6 in such regulations shall be based upon historical costs to the owner of
7 the facility, provided that payment for real property costs shall not be
8 in excess of the actual debt service, including principal and interest,
9 and payment with respect to owner's equity, and further provided that,
10 subject to federal financial participation, and subject to the approval
11 of the commissioner, effective April first, two thousand fifteen, the
12 commissioner may modify such payments for real property costs for
13 purposes of effectuating a shared savings program, whereby facilities
14 share a minimum of fifty percent of savings, for facilities that elect
15 to refinance their mortgage loans. For purposes of this subdivision,
16 owner's equity shall be calculated without regard to any surplus created
17 by revaluation of assets and shall not include amounts resulting from
18 mortgage amortization where the payment therefor has been provided by
19 real property cost reimbursement; PROVIDED, HOWEVER, AS USED IN THIS
20 SUBDIVISION THE TERMS "HISTORICAL COSTS" AND "OWNER'S EQUITY" SHALL
21 INCLUDE THE FULL REVALUATION OF THE ASSETS OF A FACILITY PURCHASED AND
22 TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
23 COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11453-01-5
A. 7993 2
1 (I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
2 WITH PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM THE
3 TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
4 TRANSFER;
5 (II) THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED THE
6 APPLICATION FOR TRANSFER OF THE FACILITY AND APPROVED THE APPLICATION AS
7 AN ADDITION OF NET NEW BEDS;
8 (III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
9 TY'S PHYSICAL PLANT AND CONSIDERATION OF THE TRANSFER; AND
10 (IV) THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING CONDITIONS
11 IS TRUE:
12 (1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
13 (2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
14 TY OF THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY EXCEED THE
15 COMBINED PURCHASE PRICE AND TOTAL PROJECT COST FOR APPROVED RENOVATION
16 COSTS OF THE REVALUED FACILITY;
17 (3) THE PURCHASE PRICE IS REASONABLE; AND
18 (4) THE SALE OF THE FACILITY IS IN THE PUBLIC INTEREST.
19 S 2. This act shall take effect immediately; provided, however, that
20 the amendments to paragraph (d) of subdivision 2-a of section 2808 of
21 the public health law made by section one of this act shall not affect
22 the expiration of such paragraph and shall be deemed to expire there-
23 with.