PHHPC Announces Ad Hoc Committee on Nursing Home Ownership Transfers
(June 23, 2025) At its June 18th meeting, the Public Health and Health Planning Council (PHHPC) announced that it will be convening an ad hoc committee on nursing home transfers of ownership. The committee, which will be chaired by Scott LaRue, CEO of ArchCare, and Tom Holt, former CEO of Lutheran Family Services, will explore ways to strengthen the character and competence review of applicants, including the evaluation of the adequacy of their relevant experience. The committee will also consider related party transactions and the financial feasibility review. One strategy under consideration to strengthen oversight of new operators is the imposition of conditions on the approval of sales and the appointment of an external reviewer at the expense of the applicant.
The decision to create the ad hoc committee arose out of concerns raised by Mr. LaRue and other PHHPC members regarding three applications to transfer ownership from not-for-profit and county operators to for-profit entities. The concerns primarily related to the ability of the new operators to deliver quality care and maintain the financial viability of the facilities after the completion of the sales. In the past, similar sales have raised concerns regarding the relevant experience of proposed operators.
The three applications – to approve the sales of Wells Rehabilitation and Nursing Center, Clinton County Nursing Home, and Hoosick Falls Rehabilitation and Nursing Center – did not receive sufficient votes to support an approval at the previous PHHPC meeting. They were approved at last week's meeting, with the votes of some members who had declined to support them earlier. In addition, the PHHPC approved the sale of the not-for-profit Silvercrest Nursing and Rehabilitation Center to a for-profit entity.
The PHHPC also adopted new regulations streamlining the certificate of need (CON) construction regulations for Article 28 facilities, by raising the monetary thresholds that trigger each level of review, expanding the scope of projects that are subject only to notice requirements, removing adult day health care programs from administrative review requirements, and allowing the approval of mobile medical vans based upon a limited review.
LeadingAge NY submitted a letter to the PHHPC supporting the streamlining, but asking for additional changes. Specifically, the association's letter noted that capital projects have become extraordinarily challenging for nursing homes due to Medicaid capital cuts and the 25 percent equity contribution requirement. It noted that the 90 percent imputed occupancy requirement further limits the reimbursement available to some nursing homes for capital costs. The letter requested an update in the outdated nursing home construction caps, established in 2007, and an exemption from the health equity impact assessment for nursing home dialysis dens and similar projects. Finally, the association asked the Department and the PHHPC to track the time from application submission to approval by project and facility type in order to pinpoint the sources of delays in processing.
The Department's report from the Deputy Commissioners to the PHHPC included some noteworthy items:
- Statewide IV Capital Awards: The Statewide Transformation IV awards for the Office of Aging and Long-Term Care and the Office of Primary Care and Health Systems Management are "on track to be announced in the near future."
- Community Aging in Place – Advancing Better Living for Elders (CAPABLE) Program: The Department is currently reviewing 43 responses to the Request for Applications seeking 20 qualified organizations to implement and manage the program.
- Master Plan for Aging (MPA): The final MPA report is "under review and will provide the recommendations generated by the drafting process, with responses by applicable State agencies to identify challenges or next steps for implementation."
Contact: Karen Lipson, klipson@leadingageny.org