Insights & Resources

Garfunkel Wild’s 2023-24 Legislative Session Update newsletter will keep you up to date on relevant legislation introduced in New York State, particularly involving hospitals and long term care facilities. Read our first edition here: 
 
Notable pieces of hospital and nursing home legislation passed both the Senate and Assembly in the last New York State Legislative Session which ended on June 6, 2024. Others failed to pass either or both legislative bodies and do not have a chance of becoming law this Session.[i] Throughout the remainder of the year, legislation that passed both houses will be sent to the Governor at various times.
 

• Nursing Home Closure (S.2984/A.3703) – After failing to move in the Legislature for 7 years, this legislation codifying a procedure for nursing home closures passed both the Senate and Assembly. The legislation adds a closure process to the Public Health Law that echoes the current Department of Health closure guidelines, but includes local governments and the public in the closure plan process in order to “strengthen oversight.” If signed by the Governor, closure plans will be made available to the public and local governments, who can convene a meeting to examine the closure plan if local governments suspect the closure is for reasons other than the health and safety of the nursing home residents.

 

• Hospital Closure Moratorium (S.8907-A and A.9819) – Senate Bill 8907-A, which passed in the Senate but did not have a companion bill in the Assembly, would require the Department of Health to produce a report that examined the impact of hospital closures on healthcare access in New York State. Assembly Bill 9819 did not move in the Assembly, nor did it have a Senate companion, and would have placed a moratorium that prohibited hospitals from closing or reducing capacity below what it was on the date the moratorium was imposed. Neither of these two bills had a companion bill in the other house, removing any chance of these measures becoming law.

 

• Corporate Arrangements (S.8987-A/A.5375-A) – Passing in the Senate only, this legislation would have expanded the requirement for Public Health and Health Planning Council hospital establishment approval to individuals and entities with certain decision-making authority, such as those with the authority to: adopt, approve or enforce hospital operating policies or procedures; elect or remove members of the governing board or corporate officers of the hospital; or approve of the hospital's operating or capital budgets. This measure applies to hospitals, as defined by Public Health Law 2801(1), including general hospitals and nursing homes.

 

• Temporary Operator (A.6034-B/S.9131) – This legislation, which passed both the Senate and Assembly, extends the law authorizing temporary operators to nursing homes. Temporary operators are currently only permitted for hospitals, adult care facilities, and certain diagnostic and treatment centers experiencing serious financial instability or conditions that seriously endanger the life, health or safety of residents or patients. This legislation did not amend or affect the receivership provisions contained in New York State Public Health Law.

 

• Medically Fragile Populations Bills (A.3674-A/S.5969-A) and (A.10189-B/S.9519-A) – Assembly Bill 3674-A adds a new section to the Public Health Law that mandates the Department of Health promulgate rules and regulations allowing medically fragile young adults over age 21 and residing in pediatric specialized nursing facilities to remain there until age 36 at 100% of the Medicaid rate for medically fragile children. This legislation passed both the Senate and Assembly.

 
Assembly Bill 10189-B, which also passed both the Senate and Assembly, creates an advanced residential health care for aging adults medical fragility demonstration program for medically fragile adults from age 35 to end of life in which they would receive care in a certain nonprofit residential health care facilities.
 

• Nursing Home Quality Ratings (S.3498/A.2188) – While nursing homes are currently required to post their overall CMS rating on the homepage of any website maintained by the facility, under this legislation nursing homes will also be required to post ratings for health inspections, staffing and quality measures. This legislation passed both the Senate and Assembly.

 

• Equity Withdrawal (S.9599-A/A.10262) – This legislation would have allowed nursing homes that have complied with the State minimum staffing requirements for the two immediately preceding successive quarters to withdraw equity or transfer assets exceeding 5% of total reported annual revenue. This would not have changed the current law that requires prior written approval of the Health Commissioner to withdraw equity over 3% of total reported annual revenue. However, the legislation did not advance in the Senate nor the Assembly.