NY State Senate Bill 2019-S112

Senate Bill S112

2019-2020 Legislative Session

Relates to imposing a nursing home purchase moratorium on those who own or have owned failing facilities

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Archive: Last Bill Status - In Senate Committee Health Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to health
Jan 09, 2019	referred to health

co-Sponsors

2019-S112 (ACTIVE) - Details

See Assembly Version of this Bill:: A4938
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Add §2808-e, Pub Health L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S2705, A3622
2023-2024: S650, A2064

2019-S112 (ACTIVE) - Summary

Imposes a nursing home purchase moratorium on those who own or have owned failing facilities for twenty-four months since their last violation.

2019-S112 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S112

SPONSOR: ORTT
 
TITLE OF BILL:

An act to amend the public health law, in relation to imposing a nursing
home purchase moratorium on those who own or have owned failing facili-
ties

 
PURPOSE OR GENERAL IDEA OF BILL:

To bar failing nursing home owners from acquiring additional nursing
homes in this state until they have demonstrated an ability to keep
their existing facilities up to standard.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 states the bill's intent.

Section 2 amends public health law by adding a new section 2808e. The
new section requires disclosure of nursing home ownership. Under this

section, if a nursing home is cited for health inspection violations,
the owners of that facility may not purchase another nursing home in the
state until their existing facility has been in compliance for two
years. If the owners choose to sell the facility instead, they are
blocked from buying additional facilities for two years, and must pay a
fine. Lastly, the section authorizes the department to use any fines
collected through this law to administer this law.

Section 3 sets the effective date.

 
JUSTIFICATION:

The purpose of doing facility inspections is to hold facilities to state
standards. Unfortunately, owners who do not meet state standards are
still being permitted to purchase additional nursing homes.

As reported by Lou Michel in the December 6, 2018 edition of The Buffalo
News, "New York State gave licenses to operate at least 10 Buffalo area
nursing homes in the last decade to new owners who had been fined for
providing poor care to residents at other nursing homes."

In order to ensure a high quality of care, it is critical that facility
owners who have a history of falling below our standards are not able to
subject additional residents to substandard care.

By creating a two-year moratorium for failing owners wishing to purchase
additional nursing homes, owners have a strong incentive to get and keep
their existing facilities in compliance with state standards. If an
owners opts to sell a cited facility instead of bringing it to compli-
ance, the moratorium nonetheless applies, and the owner is still subject
to fines. This bill holds nursing home owners accountable and also
protects against the expansion of substandard nursing homes.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPACT:
Minimal

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S112 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    112
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  ORTT  --  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 imposing a nursing
   home purchase moratorium on those who own or have owned failing facil-
   ities

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The legislature recognizes the importance of holding nurs-
 ing homes accountable in order to ensure a high quality  of  care.  This
 body  acknowledges  department  of  health  inspections as the method of
 holding nursing homes to our state's  standards.  The  legislature  also
 recognizes  that  nursing  home  operators  who  receive poor inspection
 grades are not meeting our state's standards.
   The legislature intends  to  bar  failing  nursing  home  owners  from
 acquiring  additional nursing homes in this state until they have demon-
 strated an ability to keep their existing facilities up to standard.
   § 2. The public health law is amended by adding a new  section  2808-e
 to read as follows:
   §  2808-E. NURSING HOME PURCHASING MORATORIUM. 1.  FOR THE PURPOSES OF
 THIS  SECTION,  THE  TERM  "OWNED  FACILITY"  SHALL  MEAN  ANY  FACILITY
 DISCLOSED UNDER SUBDIVISIONS TWO AND THREE OF THIS SECTION.
   2. ANY INDIVIDUAL ATTEMPTING TO PURCHASE A NURSING HOME SHALL DISCLOSE
 TO  THE  DEPARTMENT WHICH EXISTING MEDICAL FACILITIES THAT INDIVIDUAL OR
 THAT INDIVIDUAL'S SPOUSE OWNS WITHIN THE STATE. ADDITIONALLY, SUCH INDI-
 VIDUAL SHALL DISCLOSE WHETHER ANY PARTNERSHIP, CORPORATION, FIRM, SOCIE-
 TY, OR OTHER ENTITY OF WHICH THAT INDIVIDUAL OR THAT INDIVIDUAL'S SPOUSE
 OWNS MORE THAN TEN PERCENT OF OR BY WHICH THE INDIVIDUAL OR  THAT  INDI-
 VIDUAL'S  SPOUSE  IS  EMPLOYED  OWNS  EXISTING MEDICAL FACILITIES IN THE
 STATE.

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

                                                            LBD05389-01-9

 S. 112                              2
 
   3. ANY  PARTNERSHIP,  CORPORATION,  FIRM,  SOCIETY,  OR  OTHER  ENTITY
 ATTEMPTING  TO  PURCHASE A NURSING HOME SHALL DISCLOSE TO THE DEPARTMENT
 ANY OWNERSHIP OF EXISTING  MEDICAL  FACILITIES  IN  THE  STATE.    ADDI-
 TIONALLY,  SUCH PARTNERSHIP, CORPORATION, FIRM, SOCIETY, OR OTHER ENTITY
 SHALL  DISCLOSE  TO THE DEPARTMENT WHICH MEDICAL FACILITIES ARE OWNED BY
 ALL INDIVIDUALS OR SPOUSES OF INDIVIDUALS WHO OWN MORE THAN TEN  PERCENT
 OF SUCH ENTITY.
   4.  THE  DEPARTMENT  SHALL  REVIEW STANDARD HEALTH INSPECTION AND LIFE
 SAFETY HEALTH INSPECTION RECORDS FOR ALL OF AN APPLICANT'S OWNED FACILI-
 TIES.
   5. IN THE EVENT THAT ONE OR MORE OF AN  APPLICANT'S  OWNED  FACILITIES
 HAS BEEN CITED FOR NONCOMPLIANCE IN A STANDARD HEALTH INSPECTION OR LIFE
 SAFETY  HEALTH  INSPECTION,  THAT  APPLICANT  SHALL  NOT BE PERMITTED TO
 PURCHASE A NURSING HOME WITHIN THE STATE UNTIL  THE  OWNED  FACILITY  OR
 FACILITIES  IN  VIOLATION HAVE BEEN PROVEN TO BE IN COMPLIANCE FOR TWEN-
 TY-FOUR CONSECUTIVE MONTHS.
   6. IN THE EVENT THAT ONE OR MORE OWNED FACILITIES HAS BEEN  CITED  FOR
 NONCOMPLIANCE  IN  A  STANDARD  HEALTH  INSPECTION OR LIFE SAFETY HEALTH
 INSPECTION AND THE OWNING INDIVIDUAL,  PARTNERSHIP,  CORPORATION,  FIRM,
 SOCIETY,  OR OTHER ENTITY SELLS THE CITED OWNED FACILITY OR RELINQUISHES
 ITS OWNERSHIP STAKE IN THE CITED OWNED FACILITY, THAT INDIVIDUAL,  PART-
 NERSHIP,  CORPORATION,  FIRM,  SOCIETY,  OR  OTHER  ENTITY  SHALL NOT BE
 PERMITTED TO PURCHASE A NURSING HOME WITHIN THE STATE UNTIL  TWENTY-FOUR
 MONTHS  HAVE  ELAPSED SINCE THE CHANGE IN OWNERSHIP STATUS AND THE INDI-
 VIDUAL OR FIRM PAYS TO THE DEPARTMENT A  COMPLIANCE  FEE  EQUAL  TO  THE
 AMOUNT OF FINES IMPOSED AT THE TIME OF CITATION.
   7. ALL MONIES COLLECTED BY THE DEPARTMENT UNDER THE PROVISIONS OF THIS
 LAW  SHALL  BE MADE AVAILABLE FOR USE BY THE DEPARTMENT FOR THE PURPOSES
 OF EXECUTING THIS LAW.
   § 3. This act shall take effect immediately.

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Senate Bill S112

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Sponsored By

Robert G. Ortt