S. 5853--A 2
UTILIZATION CASES THAT EXCEED OUTLIER THRESHOLDS OF SUCH PAYMENTS;
PROVIDED HOWEVER THAT THE OUTLIER METHODOLOGY SHALL BE ALIGNED TO
PATIENT CASE MIX AND SHALL ALSO INCLUDE A MECHANISM FOR ADJUSTMENT WHERE
COST AND UTILIZATION NOT RECOGNIZED BY THE OUTLIER PAYMENT ARE NECESSARY
FOR THE SAFE AND ADEQUATE CARE OF THE PATIENT; AND PROVIDED FURTHER
HOWEVER THAT, PRIOR TO FINALIZATION, THE OUTLIER METHODOLOGY SHALL BE
PROVIDED FOR REVIEW AND CONSIDERATION OF ITS EFFECTS ON PATIENT ACCESS
TO CARE AND PROVIDER FISCAL STABILITY BY THE LEGISLATURE, REPRESEN-
TATIVES OF CONSUMERS AND STATEWIDE ASSOCIATIONS REPRESENTATIVE OF LONG
TERM HOME HEALTH CARE PROGRAMS.
(B) INITIAL BASE YEAR EPISODIC PAYMENTS SHALL BE BASED ON MEDICAID
PAID CLAIMS FOR SERVICES PROVIDED BY ALL LONG TERM HOME HEALTH CARE
PROGRAMS IN THE BASE YEAR TWO THOUSAND TEN, ADJUSTED BY ANNUAL TREND
FACTORS USING THE METHODOLOGY DESCRIBED IN PARAGRAPH (C) OF SUBDIVISION
TEN OF SECTION TWENTY-EIGHT HUNDRED SEVEN-C OF THIS CHAPTER; PROVIDED
HOWEVER THAT, AS AN ALTERNATIVE TO THE TWO THOUSAND TEN BASE YEAR, THE
COMMISSIONER MAY ESTABLISH A PROSPECTIVE BASE FOR THE EPISODIC SYSTEM,
BASED ON ANTICIPATED EXPENDITURE NEEDS FOR RATE PERIODS BEGINNING APRIL
FIRST, TWO THOUSAND TWELVE, OR AS SOON AS PRACTICABLE THEREAFTER, AND
BEYOND, IF THE COMMISSIONER DETERMINES THAT SUCH PROSPECTIVE BASE MORE
EFFECTIVELY ACCOMPLISHES THE PURPOSES OF THIS SECTION, SECTION
THIRTY-SIX HUNDRED SIXTEEN OF THIS ARTICLE AND SUBDIVISION SIX-A OF
SECTION THREE HUNDRED SIXTY-SEVEN-C OF THE SOCIAL SERVICES LAW. SUBSE-
QUENT BASE YEAR EPISODIC PAYMENTS SHALL BE BASED ON MEDICAID PAID CLAIMS
FOR SERVICES PROVIDED BY ALL LONG TERM HOME HEALTH CARE PROGRAMS IN A
SUBSEQUENT BASE YEAR, AS DETERMINED BY THE COMMISSIONER, PROVIDED,
HOWEVER, THAT SUCH BASE YEAR ADJUSTMENT SHALL BE MADE NOT LESS FREQUENT-
LY THAN EVERY THREE YEARS. IN DETERMINING CASE MIX, EACH PATIENT SHALL
BE CLASSIFIED USING A SYSTEM BASED ON MEASURES WHICH MAY INCLUDE, BUT
NOT LIMITED TO, CLINICAL AND FUNCTIONAL MEASURES, AS REPORTED ON THE
FEDERAL OUTCOME AND ASSESSMENT INFORMATION SET (OASIS), AS MAY BE
AMENDED, OR AS SUCCEEDED AND REPORTED ON A UNIFORM ASSESSMENT TOOL
APPROVED BY THE COMMISSIONER, WHICH SHALL ADEQUATELY CAPTURE THE SERVICE
REQUIREMENTS OF POST-ACUTE, REHABILITATIVE, CHRONICALLY ILL AND DISABLED
PERSONS IN THE LONG TERM HOME HEALTH CARE PROGRAM.
(C) THE COMMISSIONER MAY REQUIRE AGENCIES TO COLLECT AND SUBMIT DATA
REQUIRED TO IMPLEMENT THIS SUBDIVISION. THE COMMISSIONER MAY PROMULGATE
REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION.
(D) THE COMMISSIONER IS AUTHORIZED TO FURTHER ADJUST THE STATEWIDE
BASE YEAR AMOUNT, OR TO OTHERWISE ADJUST THE PAYMENT, AS MAY BE NECES-
SARY, TO REFLECT ACTUAL OR PROJECTED INCREASES IN THE COST OF DELIVERING
SERVICES IN THE RATE YEAR WHICH ARE NOT REFLECTED IN THE BASE YEAR,
INCLUDING COSTS ASSOCIATED WITH: (I) PATIENT POPULATIONS OR SERVICES NOT
INCLUDED IN THE BASE YEAR EXPENDITURES, INCLUDING SUCH ADDITIONAL INSTI-
TUTIONAL OR COMMUNITY BASED SERVICES AS THE COMMISSIONER DETERMINES TO
BE NECESSARY FOR THE COORDINATED AND EFFICIENT CARE OF LONG TERM HOME
HEALTH CARE PROGRAM RECIPIENTS IN THE MOST INTEGRATED SETTING FOR THE
PERSON; (II) NEW GOVERNMENTAL MANDATES AND REGULATIONS; (III) LABOR;
(IV) DISEASE OUTBREAK; (V) SEVERE SPIKES IN FUEL AND TRANSPORTATION
COSTS FOR DIRECT CARE STAFF; OR (VI) SUCH OTHER VARIABLES AS THE COMMIS-
SIONER DETERMINES APPROPRIATE.
(E) IN ADDITION, TO ADJUSTMENTS PROVIDED PURSUANT TO PARAGRAPH (D) OF
THIS SUBDIVISION, THE COMMISSIONER IS AUTHORIZED TO PROVIDE A MECHANISM
FOR AGENCY SPECIFIC ADJUSTMENTS IN PAYMENT AS ARE NECESSARY FOR THE
DELIVERY OF SERVICES OR THE QUALITY, COST-EFFECTIVENESS OR OPERATION OF
THE SYSTEM, INCLUDING ADJUSTMENTS FOR: (I) LABOR COSTS FOR DIRECT CARE
S. 5853--A 3
STAFF IN THE PARTICULAR MARKET AREA SERVED BY THE AGENCY; (II) CAPITAL
COSTS NECESSARY FOR THE AGENCY'S TECHNOLOGY INFRASTRUCTURE, INCLUDING
BUT NOT LIMITED TO ELECTRONIC HEALTH RECORDS, POINT OF CARE TECHNOLOGY
AND TELEHEALTH CARE; (III) HEALTH SYSTEMS IMPROVEMENT INITIATIVES,
INCLUDING CARE TRANSITIONS, PROVIDER COLLABORATION FOR IMPROVED PATIENT
OUTCOMES AND REDUCED AVOIDABLE HOSPITALIZATIONS, READMISSIONS, EMERGENCY
ROOM USE AND OTHER HIGH COST HEALTH CARE SERVICES USE; (IV) ENHANCEMENTS
TO THE AGENCY'S CARE MANAGEMENT CAPACITY, INCLUDING THE INTEGRATION OF
BEHAVIORAL HEALTH SERVICES, SPECIALTY NURSING CARE, PRIMARY CARE OR
OTHER CARE MANAGEMENT ENHANCEMENTS AS MAY BE APPROVED BY THE COMMISSION-
ER; AND (V) SUCH OTHER PURPOSES AS THE COMMISSIONER MAY DETERMINE TO BE
NECESSARY.
(F) THE EPISODIC SYSTEM SHALL PROVIDE FOR A REQUEST FOR ANTICIPATED
PAYMENT (RAP), CONSISTENT WITH THE RAP PROVISIONS UNDER THE EPISODIC
PAYMENT SYSTEM APPLICABLE TO LONG TERM HOME HEALTH CARE PROGRAMS UNDER
THE FEDERAL MEDICARE PROGRAM.
(G) PRIOR TO STATEWIDE IMPLEMENTATION OF THE EPISODIC SYSTEM, THE
COMMISSIONER SHALL CONDUCT A PILOT TEST OF THE SYSTEM BY SELECTED
PROVIDERS PARTICIPATING ON A VOLUNTARY BASIS. THE PILOT SHALL ASSESS THE
EFFECTS OF THE SYSTEM ON PATIENT CARE AND ACCESS AND ON PROVIDER OPER-
ATIONS AND FISCAL STATUS. THE COMMISSIONER, IN CONJUNCTION WITH REPRE-
SENTATIVES OF PILOT PROVIDERS, STATEWIDE ASSOCIATIONS REPRESENTATIVE OF
HOME CARE PROVIDERS AND CONSUMER REPRESENTATIVES, SHALL ASSESS THE
RESULTS OF THE PILOT AND REPORT TO THE LEGISLATURE, INCLUDING THE IDEN-
TIFICATION OF ANY ADJUSTMENTS NECESSARY FOR THE OPERATION OF THE EPISOD-
IC SYSTEM FOR STATEWIDE IMPLEMENTATION. UPON THE IMPLEMENTATION OF SUCH
ADJUSTMENTS, THE COMMISSIONER SHALL PROCEED TO FURTHER IMPLEMENT THE
EPISODIC SYSTEM.
(H) THE COMMISSIONER, IN CONSULTATION WITH REPRESENTATIVES OF LONG
TERM HOME HEALTH CARE PROGRAMS AND STATEWIDE ASSOCIATIONS REPRESENTATIVE
OF LONG TERM HOME HEALTH CARE PROGRAMS, SHALL REVIEW THE EPISODIC SYSTEM
AFTER THE FIRST FULL YEAR OF IMPLEMENTATION, AND, WITHIN NINETY DAYS
FOLLOWING THE COMPLETION OF SUCH PERIOD, SHALL REPORT TO THE LEGISLA-
TURE, INCLUDING THE IDENTIFICATION OF AND PLAN FOR EXECUTING ADJUSTMENTS
AS MAY BE NECESSARY FOR THE OPERATION OF THE EPISODIC SYSTEM.
S 2. The opening paragraph of subdivision 8 of section 3602 of the
public health law, as amended by chapter 622 of the laws of 1988, is
amended to read as follows:
"Long term home health care program" means a coordinated plan of care
and services provided at home TO PERSONS REQUIRING HOME AND
COMMUNITY-BASED SERVICES, INCLUDING to invalid, infirm, or disabled
persons who are medically eligible for placement in a hospital or resi-
dential health care facility for an extended period of time if such
program were unavailable; PROVIDED, HOWEVER, THAT SUCH PROGRAM SHALL
PROVIDE OR ARRANGE FOR, AND COORDINATE SUCH SERVICES, INCLUDING SUCH
COMMUNITY AND INSTITUTIONAL SERVICES, AS THE COMMISSIONER DETERMINES
NECESSARY FOR THE PROVISION OF A COORDINATED, INTEGRATED PLAN OF CARE IN
THE MOST INTEGRATED SETTING FOR THE PERSON.
S 3. Section 367-c of the social services law is amended by adding a
new subdivision 6-a to read as follows:
6-A. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE THROUGH FIVE
OF THIS SECTION, ON AND AFTER SIXTY DAYS AFTER THE EFFECTIVE DATE OF
THIS SUBDIVISION, AUTHORIZATION UNDER THIS TITLE FOR RECIPIENT PARTIC-
IPATION IN A LONG TERM HOME HEALTH CARE PROGRAM SHALL BE IN ACCORDANCE
WITH THIS SUBDIVISION.
S. 5853--A 4
IF A PERSON WHO REQUIRES HOME AND COMMUNITY BASED SERVICES, INCLUDING
A PERSON WHO REQUIRES CARE IN A NURSING FACILITY, DESIRES TO REMAIN AT
HOME AND IS DEEMED BY HIS OR HER PHYSICIAN ABLE TO RECEIVE CARE AT HOME,
SUCH PERSON SHALL HAVE THE OPTION TO ENROLL IN A LONG TERM HOME HEALTH
CARE PROGRAM IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION,
SECTION THIRTY-SIX HUNDRED SIXTEEN OF THE PUBLIC HEALTH LAW AND APPLICA-
BLE REGULATIONS OF THE DEPARTMENT. TO ENROLL IN SUCH PROGRAM, SUCH
PERSON OR SUCH PERSON'S REPRESENTATIVE SHALL SO INFORM A PROVIDER OF A
LONG TERM HOME HEALTH CARE PROGRAM. THE LONG TERM HOME HEALTH CARE
PROGRAM PROVIDER SHALL INFORM THE LOCAL SOCIAL SERVICES OFFICIAL OR
OTHER PERSON OR ENTITY DESIGNATED BY THE DEPARTMENT AND SHALL CONDUCT A
COMPREHENSIVE ASSESSMENT OF THE PATIENT'S NEEDS IN ACCORDANCE WITH
SECTION THIRTY-SIX HUNDRED SIXTEEN OF THE PUBLIC HEALTH LAW. IF THE
RESULTS OF THE ASSESSMENT INDICATE THAT THE PERSON CAN RECEIVE THE
APPROPRIATE LEVEL OF CARE AT HOME, A REPRESENTATIVE OF THE LONG TERM
HOME HEALTH CARE PROGRAM, WITH THE INPUT OF THE PERSON OR THE PERSON'S
REPRESENTATIVE, SHALL PREPARE FOR SUCH PERSON A PLAN OF CARE SUBJECT TO
THE APPROVAL OF SUCH PERSON'S PHYSICIAN. IF THE PLAN OF CARE INDICATES
THAT THE PERSON CAN BE CARED FOR APPROPRIATELY AT HOME BY THE LONG TERM
HOME HEALTH CARE PROGRAM, THE PERSON MAY BE ADMITTED TO THE PROGRAM. THE
LONG TERM HOME HEALTH CARE PROGRAM SHALL NOTIFY THE LOCAL SOCIAL
SERVICES OFFICIAL OR ALTERNATE ENTITY DESIGNATED BY THE DEPARTMENT OF
THE PERSON'S ADMISSION TO THE LONG TERM HOME HEALTH CARE PROGRAM. THE
PERSON'S ELIGIBILITY FOR THE LONG TERM HOME HEALTH CARE PROGRAM ALONG
WITH THE PLAN OF CARE THAT HAS BEEN PREPARED FOR SUCH PERSON SHALL BE
SUBJECT TO AUDIT BY THE LOCAL SOCIAL SERVICES OFFICIAL OR ALTERNATE
ENTITY IDENTIFIED BY THE DEPARTMENT. SUCH PERSON SHALL RECEIVE A COMPRE-
HENSIVE REASSESSMENT AT LEAST EVERY ONE HUNDRED EIGHTY DAYS, PURSUANT TO
SECTION THIRTY-SIX HUNDRED SIXTEEN OF THE PUBLIC HEALTH LAW, WHICH SHALL
BE THE BASIS FOR DETERMINING THE PERSON'S CONTINUED ELIGIBILITY AND CARE
UNDER THE LONG TERM HOME HEALTH CARE PROGRAM. THE COMMISSIONER SHALL
SUBMIT THE APPROPRIATE WAIVERS AND STATE PLAN AMENDMENTS NECESSARY TO
EFFECTUATE THIS SUBDIVISION.
S 4. Subdivisions 1 and 2 of section 3616 of the public health law,
subdivision 1 as amended by chapter 622 of the laws of 1988 and subdivi-
sion 2 as amended by section 33 of part B of chapter 109 of the laws of
2010, are amended to read as follows:
1. A long term home health care program shall be provided [only] to
those patients who REQUIRE HOME AND COMMUNITY BASED SERVICES, INCLUDING
PERSONS WHO are medically eligible for placement in a hospital or resi-
dential health care facility. An AIDS home care program shall be
provided [only] to persons who REQUIRE HOME AND COMMUNITY BASED
SERVICES, INCLUDING PERSONS WHO are medically eligible for placement in
a hospital or residential health care facility and who (a) are diagnosed
by a physician as having acquired immune deficiency syndrome, or (b) are
deemed by a physician, within his judgment, to be infected with the
etiologic agent of acquired immune deficiency syndrome, and whose
illness, infirmity or disability can be reasonably ascertained to be
associated with such infection. Provision of certified home health agen-
cy services, a long term home health care program or an AIDS home care
program paid for by government funds shall be based upon, but not limit-
ed to, a comprehensive assessment that shall include, but not be limited
to, an evaluation of the medical, social and environmental needs of each
applicant for such services or program. This assessment shall also serve
as the basis for the development and provision of an appropriate plan of
care for the applicant. In cases in which the applicant is a patient in
S. 5853--A 5
a hospital or residential health care facility, the assessment shall be
completed by persons designated by the commissioner, including, but not
limited to, the applicant's physician, the discharge coordinator of the
hospital or residential health care facility referring the applicant, [a
representative of the local department of social services,] and a repre-
sentative of the provider of a long term home health care program, AIDS
home care program, or the certified home health agency that will provide
services for the patient. In cases in which the applicant is not a
patient in a hospital or residential health care facility, the assess-
ment shall be completed by persons designated by the commissioner
including, but not limited to, the applicant's physician[, a represen-
tative of the local department of social services] and a representative
of the provider of a long term home health care program, AIDS home care
program or the certified home health agency that will provide services
for the patient. [The assessment shall be completed prior to or within
thirty days after the provision of services begins. Payment for services
provided prior to the completion of the assessment shall be made only if
it is determined, based upon such assessment, that the recipient quali-
fies for such services.] The commissioner shall prescribe the forms on
which the assessment will be made.
2. Continued provision of a long term home health care program, AIDS
home care program or certified home health agency services paid for by
government funds shall be based upon a comprehensive assessment of the
medical, social and environmental needs of the recipient of the
services. Such assessment shall be performed at least every one hundred
eighty days by the provider of a long term home health care program,
AIDS home care program or the certified home health agency providing
services for the patient [and the local department of social services],
and shall be reviewed by a physician charged with the responsibility by
the commissioner. The commissioner shall prescribe the forms on which
the assessment will be made.
S 5. The closing paragraph of subdivision 2 of section 3610 of the
public health law, as amended by section 65 of part A of chapter 58 of
the laws of 2010, is amended to read as follows:
If the application is approved, the applicant shall be so notified in
writing. The commissioner's written approval of the application shall
constitute authorization to provide a long term home health care
program. [In making his or her authorization, the commissioner shall
stipulate the maximum number of persons which a provider of a long term
home health care program may serve.] If the commissioner proposes to
disapprove the application, he or she shall notify the applicant in
writing, stating his or her reasons for disapproval, and afford the
applicant an opportunity for a public hearing.
S 6. Subdivision 5 of section 3610 of the public health law, as
amended by chapter 636 of the laws of 1980, is amended to read as
follows:
5. (a) Notwithstanding the provisions of subdivision four of this
section, the commissioner shall suspend, limit or revoke the authori-
zation of a provider of a long term home health care program after
taking into consideration the public need for the program and the avail-
ability of other services which may serve as alternatives or substi-
tutes, and after finding that suspending, limiting, or revoking the
authorization of such provider would be within the public interest in
order to conserve health resources by restricting the level of services
to those which are actually needed.
S. 5853--A 6
(b) [Notwithstanding the provisions of subdivision four of this
section, the commissioner may reduce the maximum number of persons which
a provider of a long term home health care program is authorized to
serve after finding that the number stipulated in such provider's
authorization is not being effectively utilized. In addition, the
commissioner may increase the number of persons which a provider of a
long term home health care program is authorized to serve after finding
that the number stipulated in such provider's authorization is insuffi-
cient to serve persons eligible to receive long term home health care
who reside in the area served by such provider.
(c)] Whenever any finding as described in paragraph (a) of this subdi-
vision is under consideration with respect to any particular provider of
a long term home health care program, the commissioner shall cause to be
published, in a newspaper of general circulation in the geographic area
of such provider, at least thirty days prior to making such a finding an
[annnouncement] ANNOUNCEMENT that such a finding is under consideration
and an address to which interested persons can write to make their views
known. The commissioner shall take all public comments into consider-
ation in making such a finding.
[(d)] (C) The commissioner shall, upon making any finding described in
paragraph (a) of this subdivision with respect to any provider of a long
term home health care program, cause such provider and the appropriate
health systems agency to be notified of the finding at least thirty days
in advance of taking the proposed action. Upon receipt of any such
notification and before the expiration of the thirty days or such longer
period as may be specified in the notice, the provider or the appropri-
ate health systems agency may request a public hearing to be held in the
county in which the provider is located. In no event shall the revoca-
tion, suspension or limitation take effect prior to the thirtieth day
after the date of the notice, or prior to the effective date specified
in the notice or prior to the date of the hearing decision, whichever is
later.
[(e)] (D) Except as otherwise provided by law, all appeals from a
finding of the commissioner made pursuant to paragraph (a) of this
subdivision shall be directly to the appellate division of the supreme
court in the third department. Except as otherwise expressly provided by
law, such appeals shall have preference over all issues in all courts.
S 7. This act shall take effect immediately.