S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7993
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 3, 2015
                                      ___________
       Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
         tee on Health
       AN  ACT  to amend the public health law, in relation to rates of payment
         to residential health care facilities based on the historical costs to
         the owner
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Paragraph  (d)  of subdivision 2-a of section 2808 of the
    2  public health law, as amended by section 52 of part B of chapter  57  of
    3  the laws of 2015, is amended to read as follows:
    4    (d)  For  facilities  granted operating certificates on or after March
    5  tenth, nineteen hundred seventy-five, recognition of real property costs
    6  in such regulations shall be based upon historical costs to the owner of
    7  the facility, provided that payment for real property costs shall not be
    8  in excess of the actual debt service, including principal and  interest,
    9  and  payment  with respect to owner's equity, and further provided that,
   10  subject to federal financial participation, and subject to the  approval
   11  of  the  commissioner,  effective April first, two thousand fifteen, the
   12  commissioner may modify  such  payments  for  real  property  costs  for
   13  purposes  of  effectuating  a shared savings program, whereby facilities
   14  share a minimum of fifty percent of savings, for facilities  that  elect
   15  to  refinance  their  mortgage  loans. For purposes of this subdivision,
   16  owner's equity shall be calculated without regard to any surplus created
   17  by revaluation of assets and shall not include  amounts  resulting  from
   18  mortgage  amortization  where  the payment therefor has been provided by
   19  real property cost reimbursement; PROVIDED, HOWEVER,  AS  USED  IN  THIS
   20  SUBDIVISION  THE  TERMS  "HISTORICAL  COSTS"  AND "OWNER'S EQUITY" SHALL
   21  INCLUDE THE FULL REVALUATION OF THE ASSETS OF A FACILITY  PURCHASED  AND
   22  TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
   23  COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11453-01-5
       A. 7993                             2
    1    (I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
    2  WITH  PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM THE
    3  TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
    4  TRANSFER;
    5    (II)  THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED THE
    6  APPLICATION FOR TRANSFER OF THE FACILITY AND APPROVED THE APPLICATION AS
    7  AN ADDITION OF NET NEW BEDS;
    8    (III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
    9  TY'S PHYSICAL PLANT AND CONSIDERATION OF THE TRANSFER; AND
   10    (IV) THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING  CONDITIONS
   11  IS TRUE:
   12    (1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
   13    (2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
   14  TY  OF  THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY EXCEED THE
   15  COMBINED PURCHASE PRICE AND TOTAL PROJECT COST FOR  APPROVED  RENOVATION
   16  COSTS OF THE REVALUED FACILITY;
   17    (3) THE PURCHASE PRICE IS REASONABLE; AND
   18    (4) THE SALE OF THE FACILITY IS IN THE PUBLIC INTEREST.
   19    S  2.  This act shall take effect immediately; provided, however, that
   20  the amendments to paragraph (d) of subdivision 2-a of  section  2808  of
   21  the  public  health law made by section one of this act shall not affect
   22  the expiration of such paragraph and shall be deemed  to  expire  there-
   23  with.