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

                                  7031

                            I N  S E N A T E

                              March 8, 2010
                               ___________

Introduced  by  Sen.  VOLKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation to the  observational
  care unit demonstration program

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

  Section 1. The public health law is amended by adding  a  new  section
2802-b to read as follows:
  S  2802-B. OBSERVATIONAL CARE UNIT DEMONSTRATION PROGRAM. 1.  NOTWITH-
STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER IS
AUTHORIZED TO APPROVE UP TO FIVE MEDICAL PRACTICES WITHIN THE  STATE  IN
UNDERSERVED RURAL AREAS OF THE STATE TO OPERATE OBSERVATIONAL CARE UNITS
BY  AND  WITHIN  SUCH  MEDICAL  PRACTICES. FOR PURPOSES OF THIS SECTION,
"OBSERVATIONAL CARE" SHALL MEAN THOSE SERVICES FURNISHED  BY  A  MEDICAL
PRACTICE  ON PREMISES, INCLUDING USE OF A BED AND PERIODIC MONITORING BY
A MEDICAL PRACTICE'S NURSING OR OTHER STAFF, WHICH  ARE  REASONABLE  AND
NECESSARY  TO  EVALUATE  AN OUTPATIENT'S CONDITION OR DETERMINE THE NEED
FOR A POSSIBLE ADMISSION TO A HOSPITAL AS AN INPATIENT  OR  CONTINUE  TO
NEED  SPECIALIZED MEDICAL, NURSING AND OTHER HOSPITAL ANCILLARY SERVICES
AND ARE NOT YET APPROPRIATE FOR DISCHARGE.
  2. IN ORDER TO RECEIVE APPROVAL FROM THE COMMISSIONER  TO  OPERATE  AN
OBSERVATIONAL UNIT AND TO PROVIDE OBSERVATIONAL CARE SERVICES, A MEDICAL
PRACTICE  SHALL FILE AN APPLICATION ON FORMS PRESCRIBED BY OR ACCEPTABLE
TO THE COMMISSIONER.
  (A) THE COMMISSIONER SHALL ACT UPON  SUCH  APPLICATIONS  IN  A  MANNER
CONSISTENT  WITH  SECTION  TWENTY-EIGHT  HUNDRED  TWO  OF  THIS  ARTICLE
PROVIDED THAT THE COMMISSIONER MAY NOT WAIVE REVIEW  AND  RECOMMENDATION
BY THE STATE HOSPITAL REVIEW AND PLANNING COUNCIL. IN THE STATE HOSPITAL
REVIEW AND PLANNING COUNCIL'S EVALUATION OF APPLICATIONS AND THE COMMIS-
SIONER  ACTING UPON SUCH APPLICATIONS, PRIORITY SHALL BE GIVEN TO APPLI-
CANTS WHO ARE SERVING PATIENTS LOCATED IN A MEDICALLY UNDERSERVED  RURAL
SERVICE AREA. FURTHER, IN THE STATE HOSPITAL REVIEW AND PLANNING COUNCIL
EVALUATING  APPLICATIONS  AND THE COMMISSIONER ACTING UPON SUCH APPLICA-
TIONS, CONSIDERATION SHALL ALSO BE GIVEN TO THE GEOGRAPHIC  DISTRIBUTION

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

                                                           LBD15743-02-0

S. 7031                             2

OF APPLICANTS THROUGHOUT THE STATE, SO THAT APPLICATIONS MAY BE APPROVED
FROM THE VARIOUS GEOGRAPHIC REGIONS OF THE STATE.
  (B)  THE  CARE PROVIDED IN AN OBSERVATIONAL CARE UNIT SHALL BE LIMITED
IN DURATION NOT TO EXCEED TWENTY-FOUR HOURS AND DESIGNED  TO  RESOLVE  A
PATIENT'S  ACUTE  CARE  MEDICAL  PROBLEMS, TEST, DIAGNOSE, STABILIZE AND
TREAT RAPIDLY PATIENTS WHO ARE IN NEED  OF  A  LEVEL  OF  TREATMENT  NOT
REQUIRING  IMMEDIATE  INPATIENT  ADMISSION  TO  A  HOSPITAL FACILITY AND
APPROPRIATE DISCHARGE OF SUCH A PATIENT TO A  HOME,  RESIDENTIAL  HEALTH
CARE FACILITY OR OTHER APPROPRIATE SETTING.
  (C)  IN ORDER TO BE APPROVED TO OPERATE AN OBSERVATIONAL CARE UNIT AND
TO PROVIDE OBSERVATIONAL CARE SERVICES, AN APPLICANT  MUST  COMPLY  WITH
AND  MEET ALL APPLICABLE REQUIREMENTS OF AND CONDITIONS OF PARTICIPATION
UNDER TITLE XVIII OF THE FEDERAL SOCIAL SECURITY ACT (MEDICARE).
  3. THE COMMISSIONER SHALL REPORT TO THE GOVERNOR AND  THE  LEGISLATURE
CONCERNING  THE  IMPLEMENTATION  OF  THIS  SECTION  AND THE OPERATION OF
OBSERVATIONAL CARE UNITS WITHIN THREE YEARS AFTER THE EFFECTIVE DATE  OF
THIS SECTION.
  S 2. This act shall take effect immediately.