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Governor Signs Nursing Home Transparency and Oversight Bill Into Law

On Dec. 16th, Governor Andrew Cuomo signed into law legislation that will broaden nursing home abuse reporting requirements, authorize independent quality monitors to oversee plans of correction, require increased ownership disclosure, limit certain business transactions, and increase public disclosure of admission agreements and charges. LeadingAge NY had opposed the legislation (A.4757-A/S.5908) based on concerns that it would impede development of non-nursing home services and for other reasons.

A summary of the legislation appears below:

Section 1: Amends Public Health Law (PHL) § 2803-d to expand the duty to all facility employees and contractors to report to the Department of Health (DOH) “abuse” (not just physical abuse), add theft from residents to the report obligation, and require reports not sustained to be sealed rather than expunged.

  • By substituting the term “abuse” for “physical abuse,” the legislation broadens the reporting requirement to include verbal, mental, and sexual abuse as well. It also significantly broadens the requirement for any contractor (not just a contractor that provides patient care services) to report any alleged abuse, neglect, or misappropriation of property. Minimally, facilities will need to educate contractors on these new requirements. DOH plans to develop corresponding reporting forms that will be available online.

Section 2: Adds a new PHL § 2803-w to authorize appointment of independent quality monitors, chosen by DOH, to assure compliance with nursing home written corrective action plans.

  • The legislation will change how directed plans of correction are currently administered by (1) authorizing DOH to select the organization that will act as the quality monitor; and (2) adding a requirement for the quality monitor to furnish reports directly to DOH on implementation of the plan of correction.

Section 3: Adds a new PHL § 2803-x to require disclosure to DOH of any co-owners or contractors with familial ties to the operator, limit debt obligation, and require 90-day notice to DOH of sale, mortgage, or any encumbrance of facility property. This section will also recoup State funds for capital investment if a facility is sold and then used for a purpose other than providing health care.

  • LeadingAge NY is especially concerned with a provision that will preclude a nursing home operator from guaranteeing the debt or other obligation of a party which has not received Certificate of Need establishment approval. LeadingAge NY member organizations that operate nursing homes often seek to develop or operate senior housing, assisted living, and other services not subject to establishment approval using loan guarantees.

Section 4: Adds a new PHL § 2803-y to require notification to prospective residents of residency agreement terms, including rates charged to residents.

  • This will require facilities to post their admission agreement and facility charges online and give copies of this information to prospective residents/families.

The new law takes effect 120 days after it was signed, which is April 14, 2020. LeadingAge NY is actively considering seeking amendments to this new law in the upcoming legislative session.

Contact: Dan Heim, dheim@leadingageny.org, 518-867-8866