Insights & Resources

February 3, 2025 | Alerts

Legislation Alert: Potential Penalty Increases for New York Nursing Homes and Hospitals

Legislation Alert: Potential Penalty Increases for New York Nursing Homes and Hospitals

On February 4, 2025, the New York State Assembly Health Committee will vote on legislation that proposes to increase the penalties for violations of the State Public Health Law (PHL), with an increased maximum penalty specifically for Article 28 hospitals and nursing homes. The justification for this proposed measure is that current monetary penalties for PHL violations are “outdated” and “nonthreatening” and merely regarded as the “cost of doing business.”

The proposed legislation, introduced by the Chair of the Assembly Health Committee, amends the range of penalties from $2,000 – $10,000 per violation to $3,000 – $20,000 per violation. However, there will be a higher minimum penalty of $5,000 per violation for nursing homes or general hospitals. Further, current law imposes a maximum penalty of $5,000 for subsequent violations of the PHL, whereas the proposed legislation would double the maximum penalty to $10,000.

Of particular importance to nursing home operators, the proposed legislation permits the State Health Commissioner to transfer penalties over $10,000 per violation collected from operators of nursing homes to the nursing home quality improvement demonstration program created by the state to improve quality of care.

Garfunkel Wild will be tracking the progress of this legislation and other measures introduced in the New York State Legislature that may have an impact on the nursing home and hospital industries. Please stay tuned for updates.

Should you have any questions regarding the above, please contact the author, the Garfunkel Wild attorney with whom you regularly work, or email us at [email protected].