Bill Text: NY S04336 | 2021-2022 | General Assembly | Amended

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Bill Title: Directs the commissioner of health to establish a direct patient care ratio reporting and rebate requirement for nursing homes.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed - Dead) 2022-01-05 - REFERRED TO HEALTH [S04336 Detail]

Download: New_York-2021-S04336-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4336--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 3, 2021
                                       ___________

        Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
          printed to be committed  to  the  Committee  on  Health  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN  ACT  to  amend  the  public health law, in relation to directing the
          commissioner of health  to  establish  a  direct  patient  care  ratio
          reporting and rebate requirement for nursing homes

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 206 of the public health law is amended by adding a
     2  new subdivision 29 to read as follows:
     3    29. (a) The commissioner shall establish a direct patient  care  ratio
     4  reporting  and rebate requirement, which shall take effect no later than
     5  July first, two thousand twenty-one, pursuant  to  which  nursing  homes
     6  shall   be  required  to  report  to  the  commissioner  total  revenues
     7  collected, along with the portion  of  revenues  that  are  expended  on
     8  direct  patient care, staff wages, other staff wages, taxes, administra-
     9  tive costs, including but not limited to management agreement and staff-
    10  ing agency contracts, investments in improvements to the  structure  and
    11  equipment of the facility, real estate costs, capital expenses, profits,
    12  and any other factors as the commissioner shall require.
    13    (b)  The  direct  patient  care ratio shall require seventy percent or
    14  such higher percentage as the commissioner may establish  by  regulation
    15  of a facility's aggregate revenue in a fiscal year to be expended on the
    16  direct  care of residents.  In addition, forty percent of the facility's
    17  aggregate revenue, which shall be considered part  of  the  direct  care
    18  costs,  shall be expended on staff wages and benefits, and purchased and
    19  contracted staffing services.  For purposes of calculating purchased and
    20  contracted staffing services, the total number used shall be  discounted
    21  at  eighty-five  percent  of  the  contracted or purchased amount.   The
    22  commissioner shall determine which components of the reporting  require-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02777-04-1
        S. 4336--A                          2

     1  ments  shall be attributable to the direct patient care ratio, but shall
     2  not include administrative costs, profits, real estate costs, and  capi-
     3  tal  expenses.  The commissioner may adjust the components of the direct
     4  patient care ratio as appropriate based on current financial information
     5  reported  by  nursing  homes and overall performance by the nursing home
     6  related to patient safety, direct patient care staff ratios, and quality
     7  of care.
     8    (c) The commissioner, or an entity designated by the commissioner, may
     9  conduct an audit of the financial information reported by a nursing home
    10  pursuant to this section to  ensure  the  accuracy  of  the  information
    11  reported  and  compliance  with the requirements of this subdivision, as
    12  well as to identify and recover any payments  that  exceed  the  allowed
    13  cost  ratio for administrative costs and profits established pursuant to
    14  paragraph (b) of this subdivision. In each case where the direct patient
    15  care ratio fails to substantially  comply  with  the  ratio  requirement
    16  established pursuant to this subdivision, the nursing home shall issue a
    17  pro  rata  dividend  or  credit  to the state and to all individuals and
    18  entities making payments to the nursing home for resident services in an
    19  amount sufficient to ensure that the aggregate amount  paid  for  direct
    20  patient  care  staff  wages,  other  staff  wages, taxes, administrative
    21  costs, investments in improvements to the structure and equipment of the
    22  facility, profits, and such other  factors  as  the  commissioner  shall
    23  require, plus the amount of the dividends and credits, equals the manda-
    24  tory  ratio  for  the  previous  calendar year. The pro rata dividend or
    25  credit shall be equal to the percentage of payments made by the payor to
    26  the nursing home out of all  payments  made  to  the  nursing  home  for
    27  services  provided in the previous calendar year from all payment sourc-
    28  es. All dividends and credits shall be distributed by June thirtieth  of
    29  the  year  following  the  calendar year in which the ratio requirements
    30  were not satisfied.
    31    § 2. This act shall take effect immediately.