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A06034 Summary:

COSPNSRBichotte Hermelyn, Sayegh
Amd §2806-a, Pub Health L
Expands the scope of the temporary operator program permitting the commissioner of health to appoint an operator if a facility experiences serious financial instability or conditions that seriously endanger the life, health or safety of residents or patients.
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A06034 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the public health law, in relation to expanding the scope of the temporary operator program   PURPOSE OR GENERAL IDEA OF BILL: To extend the law authorizing temporary operators for certain health care facilities to also cover nursing homes.   SUMMARY OF PROVISIONS: Section 1 amends Public Health Law § 2806-a (appointment of temporary operators of certain health facilities) to modify the definition of "facility" covered by the law, to include nursing homes. The current law 'covers only general, hospitals, diagnostic and treatment centers, adult care facilities, and assisted living residences, but not nursing homes. This bill expands the definition to any facility defined as a "hospital" under Public Health Law section 2801 (1), thereby bringing in nursing homes. Section 2 is am immediate effective date   JUSTIFICATION: The 2013 budget enacted PHL S 2806-a, which authorizes the appointment of temporary operators for general hospitals, diagnostic and treatment centers, adult care facilities, or assisted living residences. A tempo- rary operator may be appointed by the Commissioner of Health in the event that a facility faces serious financial instability or conditions in the facility seriously endanger the life, health, or safety of resi- dents or patients. This bill would be a significant step forward in nursing home reform. Nursing homes were excluded from the current scope of the law. However, there is no policy justification for doing so. The temporary operator law is an important process for ensuring oversight of facilities and protection of their residents and patients. This bill would bring-nurs- ing homes into it by amending definitions but does not make other chang- es to the law.   PRIOR LEGISLATIVE HISTORY: 2021-2022: A6964 - similar bill reported to third reading calendar   EFFECTIVE DATE: This act shall take effect immediately.
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A06034 Text:

                STATE OF NEW YORK
                                                                Cal. No. 172
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                     March 30, 2023
        Introduced  by  M.  of A. PAULIN, BICHOTTE HERMELYN, SAYEGH -- read once
          and referred to the Committee on Health -- committee discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- ordered to a third reading -- passed by Assembly and  delivered
          to  the  Senate,  recalled  from  the  Senate, vote reconsidered, bill
          amended, ordered reprinted, retaining its place on the order of  third
        AN  ACT  to  amend  the  public health law, in relation to expanding the
          scope of the temporary operator program
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision 1 of section 2806-a of the public health law,
     2  as added by section 50 of part E of chapter 56  of  the  laws  of  2013,
     3  paragraph  (g) as added by section 7 of part K of chapter 57 of the laws
     4  of 2015, is amended to read as follows:
     5    1. For the purposes of this section:
     6    (a) "adult care facility" shall mean an adult home or enriched housing
     7  program licensed pursuant to article seven of the social services law or
     8  an assisted living residence licensed pursuant to article forty-six-B of
     9  this chapter;
    10    (b) "established operator" shall mean the operator of [an adult  care]
    11  a  facility[,  a  general  hospital or a diagnostic and treatment center
    12  that has been established and issued an operating  certificate  as  such
    13  pursuant to this article];
    14    (c)  "facility"  shall  mean (i) a [general] hospital [or a diagnostic
    15  and treatment center that has been issued an  operating  certificate  as
    16  such pursuant to this article]; or (ii) an adult care facility;
    17    (d) "temporary operator" shall mean any person or entity that:
    18    (i)  agrees  to  operate  a  facility on a temporary basis in the best
    19  interests of its residents or patients and the community served  by  the
    20  facility; and

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

        A. 6034--B                          2
     1    (ii)  has  demonstrated  that [he or she has] they have the character,
     2  competence and financial ability to operate the facility  in  compliance
     3  with applicable standards;
     4    (e)  "serious  financial instability" shall include but not be limited
     5  to defaulting or violating key covenants of loans,  or  missed  mortgage
     6  payments,  or general untimely payment of obligations, including but not
     7  limited to employee benefit fund, payroll  tax,  and  insurance  premium
     8  obligations,  or  failure  to  maintain  required  debt service coverage
     9  ratios or, as applicable, factors that have triggered a written event of
    10  default notice to the department by the dormitory authority of the state
    11  of New York; and
    12    (f)  "extraordinary  financial  assistance"  shall  mean  state  funds
    13  provided  to  a facility upon such facility's request for the purpose of
    14  assisting the facility to address serious  financial  instability.  Such
    15  funds  may  be  derived  from  existing  programs within the department,
    16  special appropriations, or other funds.
    17    (g) "improper delegation of  management  authority  by  the  governing
    18  authority  or  operator" of a [general hospital] facility shall include,
    19  but not be limited to, the delegation to an entity  that  has  not  been
    20  established  as  an  operator  of the [general hospital] facility of (i)
    21  authority to hire or fire the  administrator  or  other  key  management
    22  employees;  (ii) maintenance and control of the books and records; (iii)
    23  authority over the disposition of assets and the  incurring  of  liabil-
    24  ities  on  behalf of the facility; and (iv) the adoption and enforcement
    25  of policies regarding the operation of the facility.  The  criteria  set
    26  forth  in  this paragraph shall not be the sole determining factors, but
    27  indicators to be considered with such other factors that may  be  perti-
    28  nent  in particular instances. Professional expertise shall be exercised
    29  in the utilization of the criteria. All of the listed indicia  need  not
    30  be present in a given instance for there to be an improper delegation of
    31  authority.
    32    §  2.  This act shall take effect immediately; provided the amendments
    33  to section 2806-a of the public health law made by section one  of  this
    34  act  shall  not  affect  the  repeal of such section and shall be deemed
    35  repealed therewith.
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