Prohibits the public health and health planning council and the commissioner of health from approving the establishment, incorporation, construction, or increase in capacity of for-profit nursing homes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5842
TITLE OF BILL:
An act to amend the public health law, in relation to the establishment,
incorporation, construction, or increase in capacity of for-profit nurs-
PURPOSE OR GENERAL IDEA OF BILL:
To end the establishment or expansion of for-profit nursing homes.
SUMMARY OF SPECIFIC PROVISIONS:
Adds a new Public Health Law § 2802-c to prohibit all future establish-
ment or expansion of bed capacity of a nursing home owned or operated,
in whole or part, by a for-profit entity. Current facilities, and those
with applications pending at the time this act was to become law, may
proceed. Modifications in the ownership of a previously-approved for-
profit nursing home (e.g., deleting or adding a shareholder) would be
In recent years, for-profit nursing homes in New York have grown from
about one-third of the market to two-thirds. National data shows that
for-profit nursing homes score worse on staffing, infection control and
other quality indicators. They have higher rates of patient deaths and
cost more. The State Attorney General's 2021 report documents that dubi-
ous real estate and service contract transactions divert funds from
patient care and had a hand in increasing COVID-19 risks to patients.
This bill prohibits granting of new for-profit nursing home licenses or
expanding the capacity of existing for-profit nursing homes
PRIOR LEGISLATIVE HISTORY:
STATE OF NEW YORK
2021-2022 Regular Sessions
February 26, 2021
Introduced by M. of A. GOTTFRIED -- read once and referred to the
Committee on Health
AN ACT to amend the public health law, in relation to the establishment,
incorporation, construction, or increase in capacity of for-profit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public health law is amended by adding a new section
2 2802-c to read as follows:
3 § 2802-c. No additional or expanded for-profit nursing homes. 1.
4 Notwithstanding any provision of this article to the contrary, the
5 commissioner and the council shall not approve or take any action that
6 would establish, incorporate or approve the construction of any for-pro-
7 fit nursing home or increase the resident capacity of any for-profit
8 nursing home.
9 2. However, with respect to a facility that was established, incorpo-
10 rated or approved for construction as a for-profit nursing home prior to
11 the effective date of this section, this section shall not bar further
12 action relating to the establishment, incorporation or construction of
13 that facility, provided that the action does not approve or result in an
14 increase in the resident capacity of that nursing home.
15 3. As used in this section, "for-profit nursing home" means a nursing
16 home owned or operated, in whole or in part, by a for-profit entity.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.