senate Bill S2879

Relates to payments for residential health care facilities in Erie county and Niagara county

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 02 / Feb / 2011
    • REFERRED TO HEALTH
  • 04 / Jan / 2012
    • REFERRED TO HEALTH

Summary

Relates to allowing residential health care facilities meeting certain requirements located in Erie county and Niagara county reimbursement at rate of forty percent above the rate set forth in 10 NYCRR section 86-2.10.

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Bill Details

Versions:
S2879
Legislative Cycle:
2011-2012
Current Committee:
Senate Health
Law Section:
Social Services Law
Laws Affected:
Add ยง367-y, Soc Serv L
Versions Introduced in 2009-2010 Legislative Cycle:
S7174

Sponsor Memo

BILL NUMBER:S2879

TITLE OF BILL:
An act
to amend the social services law, in relation to payments for
residential health care facilities in Erie county and Niagara county

PURPOSE:
To ensure the provision of long term care services for frail
and impoverished elderly patients, and to prevent future closures of
nursing homes.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: This legislation will create
a special Medicaid reimbursement rate 40% higher than what is called
for in previous regulations. The rate will apply to facilities that
meet five of the six criteria: 80% or more Medicaid payor mix,
hospital affiliation, not-for-profit status, the creation or
retention of at least 120 jobs at the facility, location in a
metropolitan statistical area where more than 15.5% of the population
is over the age 65, and location in either Erie or Niagara Counties.

Section II: Effective date.

JUSTIFICATION:
Western New York is at a disadvantage because the rate
at which Medicaid reimburses nursing homes has been significantly
below the cost to provide care. In many cases, the reimbursement has
been $35 to $50 below cost, per Medicaid patient, per day, resulting
in losses that have exceeded $1,000,000 a year for some nursing
homes. This has caused a situation where the nursing homes that have
high percentages of patients on Medicaid are being forced to shut
clown and layoff workers.
Most of the workers who are laid off are minorities.

In the past several years, eight nursing homes have closed in western
New York. In the City of Buffalo, three facilities have closed in the
past 24 months, resulting in the loss of over 700 jobs. A fourth
nursing home in Buffalo recently received approval for closure, and
several more are on the brink of bankruptcy. In this urban area,
where there were once 14 nursing homes, there has been a 36% drop in
the number of facilities, a figure that will increase if no action is
taken to address the problem. As such, this legislation is necessary
to avoid significant loss of jobs and closure of facilities where the
percentage of residents on Medicaid is very high, and where rates of
poverty are substantially higher than the statewide average.

PRIOR LEGISLATIVE HISTORY:
03/18/10 Referred to Health

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2879

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 2, 2011
                               ___________

Introduced by Sens. GRISANTI, MAZIARZ, KENNEDY -- read twice and ordered
  printed, and when printed to be committed to the Committee on Health

AN  ACT  to  amend  the social services law, in relation to payments for
  residential health care facilities in Erie county and Niagara county

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The social services law is amended by adding a new section
367-y to read as follows:
  S 367-Y. PAYMENT FOR RESIDENTIAL HEALTH CARE FACILITIES IN ERIE COUNTY
AND NIAGARA COUNTY. 1. NOTWITHSTANDING ANY LAW, RULE  OR  REGULATION  TO
THE  CONTRARY,  RESIDENTIAL  HEALTH  CARE FACILITIES MEETING FIVE OF THE
FOLLOWING SIX CATEGORIES:
  (A) THE FACILITY IS A NOT-FOR-PROFIT  FACILITY  LOCATED  IN  AN  URBAN
AREA;
  (B) THE FACILITY IS A HOSPITAL AFFILIATED FACILITY;
  (C) THE FACILITY IS IN A METROPOLITAN STATISTICAL AREA WHERE MORE THAN
FIFTEEN  AND ONE-HALF PERCENT OF THE TOTAL POPULATION IS OVER THE AGE OF
SIXTY-FIVE;
  (D) THE FACILITY HAS OVER EIGHTY PERCENT OF MEDICAID PAYOR MIX;
  (E) THERE IS JOB RETENTION AND/OR CREATION FOR AT  LEAST  ONE  HUNDRED
TWENTY PEOPLE PER FACILITY; AND
  (F) THE FACILITY IS LOCATED IN ERIE COUNTY OR NIAGARA COUNTY;
SHALL  BE  REIMBURSED AT A MEDICAID RATE (LESS CAPITAL) OF FORTY PERCENT
ABOVE THE RATE SET FORTH IN  10  NYCRR  SECTION  86-2.10  FOR  ALL  CARE
PROVIDED AT SUCH FACILITY.
  2. THE TERM "RESIDENTIAL HEALTH CARE FACILITIES" SHALL MEAN ALL FACIL-
ITIES  OR ORGANIZATIONS COVERED BY THE TERM "NURSING HOME" AS DEFINED IN
SUBDIVISION TWO OF SECTION TWENTY-EIGHT HUNDRED ONE OF THE PUBLIC HEALTH
LAW, INCLUDING HOSPITAL-BASED RESIDENTIAL HEALTH  CARE  FACILITIES,  AND
NURSING  FACILITIES  AS  DEFINED  IN  SECTION 1919 OF THE FEDERAL SOCIAL
SECURITY ACT, PROVIDED THAT SUCH FACILITY POSSESSES  A  VALID  OPERATING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06861-01-1

S. 2879                             2

CERTIFICATE  ISSUED  BY  THE  STATE  COMMISSIONER  OF  HEALTH AND, WHERE
REQUIRED, HAS BEEN ESTABLISHED BY THE PUBLIC HEALTH COUNCIL.
  3.  THE  COMMISSIONER  OF  HEALTH IS HEREBY AUTHORIZED AND DIRECTED TO
ADOPT RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
  S 2. This act shall take effect immediately, provided,  however,  that
the  commissioner  of  health shall promulgate any rules and regulations
necessary for the implementation of this act on or before such effective
date.

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