New Law Imposes Broad Notice And Contract Disclosure Requirements On New York Nursing Homes

April 28, 2021

 

Last week, Governor Cuomo signed S04893A/A5684A into law. The law, which took effect immediately, greatly impacts the ownership and operation of nursing homes in New York by imposing broad notice and contract disclosure requirements on nursing homes.  Among the new requirements are the following:

  • Requires disclosure to prospective and current residents of any contracts with or services provided by an individual who is an owner, or family member of an owner, of the licensed operator or an entity in which such person has an interest. Operators must also provide notice to the Department of Health, residents, staff and their representatives at least 90 days before entering into these arrangements.
  • Requires notice to the Department of Health at least 90 days before entering into a contract related to the management or operations of the nursing home, including contracts with staffing agencies. Notice must also be provided to all residents and staff within 5 days after signing such contracts.
  • Adds additional Certificate of Need (“CON”) requirements on establishment of nursing homes, including:
    • New notice and public hearing requirements on establishment applications.
    • Expanded disclosure and review requirements regarding the character and competence of proposed controlling persons and owners, and new quality of care requirements for facilities in which such persons have an interest
  • Requires any new owner, operator or management company to retain all employees of the nursing home, at the same wage and benefit level, for at least 60 days, with certain exceptions.

Garfunkel Wild has been regularly tracking and monitoring the status of proposed and enacted nursing home legislation, a list of which can be found here.

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Should you have any questions regarding the above, please contact the Garfunkel Wild attorney with whom you regularly work, or contact us at info@garfunkelwild.com.

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