NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2213
SPONSOR: Hyndman 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 (S.7507-C) that was agreed to by the Governor,
Senate Republicans and Assembly Democrats that put new restrictions and
additional noodles 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 legislation 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 quality 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.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
Retroactive to the date of enactment of Chapter 57/Laws of 2018.
STATE OF NEW YORK
________________________________________________________________________
2213
2023-2024 Regular Sessions
IN ASSEMBLY
January 25, 2023
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Health
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 4 and 6 of section 3605 of the public health
2 law, as amended by section 9-b of part B of chapter 57 of the laws of
3 2018, are amended to read as follows:
4 4. The public health and health planning council shall not approve an
5 application for licensure unless it is satisfied as to[: (a) the public
6 need for the existence of the licensed home health care service agency
7 at the time and place and under the circumstances proposed; (b)] the
8 character, competence and standing in the community of the applicant's
9 incorporators, directors, sponsors, stockholders or operators[; (c) the
10 financial resources of the proposed licensed home health care service
11 agency and its sources of financial revenues; and (d) such other matters
12 as it shall deem pertinent].
13 6. Neither public need, tax status nor profit-making status shall be
14 criteria for licensure.
15 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03766-01-3
