Senate Bill S3705

                                 
BILL NUMBER: S3705

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the public health law, in relation to limitations on the
processing and approval of applications seeking licensure of a licensed
home care services agency

 
PURPOSE OR GENERAL IDEA OF BILL:

Repeals unwise provisions inserted in to the FY 2018-19 Budget that have
negatively affected the operation of Licensed Home Care Services Agen-
cies (LHCSAs) within our communities.

 
SUMMARY OF SPECIFIC PROVISIONS:

This legislation simply strikes out recently-added hurdles, which
received little to know public vetting-to hurdles to the successful
operation and licensure of LHCSA's including "public need," "standing in
the community" and "financial resources" for LHCSAs to meet to receive
approval. Essentially, many of the pre-Chapter 57 of 2018 licensing
              

criteria are reestablished.

 
JUSTIFICATION:

There are currently over 1,400 LHCSAs authorized to provide hourly nurs-
ing care, assistance with activities of daily living and other health
and social services to New York's low-income elderly and disabled popu-
lations. In the past five years alone, home health employers have added
72,600 jobs in New York. In 2018, for the first time ever, the number of
people employed in the home health sector in New York City (167,000) has
surpassed the number employed by private hospitals in New York City
(166,300).

The FY 2018-19 Enacted Budget contained language in the Health and
Mental Hygiene bill (5.7507-C) that Was agreed to by the Governor,
Senate Republicans and Assembly Democrats that put new restrictions and
additional hurdles on Licensed Home Care Services Agencies (LHCSAs). The
rationale behind these changes-from the perspective of the Department of
Health-was to move from a fragmented, decentralized model of care to a
more coordinated and centrally-planned one. In addition, it has been
reported that DOH believes that fewer providers will reduce waste, inef-
ficiency and the opportunity for fraud. The major downside of these
changes is that they will-by design-affect small, local operations forc-
ing them to merge and/or change their business model, and at worst,
potentially lose their ability to operate. Such changes seem to ignore
the basic current business model of local LHCSA operations who provide
targeted local care in the homes of individuals; in many ways this busi-
ness model cannot be scaled up and retain the quality of services
afforded by local groups who are trusted in the community.  This legis-
lation strikes out the requirement that in the future, post the 2-year
moratorium LHCSA enacted in 2018-applicants will need to demonstrate
"public need," "standing in the community" and "financial resources" to
receive approval.

While many LHCSA's have all of these attributes and more, additional
mandates and hurdles on these small businesses is unnecessary.  LHCSA110
are community-based small businesses that already spend so much time on.
regulation and compliance; in the long term, if all of the 2018 changes
are allowed to stand, it could eventually mean that small operators no
longer have the opportunity to provide services to the community. With
hindsight and reflection upon what truly allows LHCSAs to deliver quali-
ty care in the community, it has become very clear that letting these
businesses fail under a system intentionally stacked against them is not
a fair, sound, rational or viable option.

 
PRIOR LEGISLATIVE HISTORY:

2023- 2024: S2541 Comrie

2021-22: S.4031/ A.2652

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
Retroactive to the date of enactment of Chapter 57/Laws of 2018.