S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5739--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     June 1, 2015
                                      ___________
       Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
         printed to be committed  to  the  Committee  on  Health  --  committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN  ACT  to amend the public health law, in relation to rates of payment
         to residential health care facilities based on the historical costs to
         the owner
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Paragraph  (d)  of subdivision 2-a of section 2808 of the
    2  public health law, as amended by section 52 of part B of chapter  57  of
    3  the laws of 2015, is amended to read as follows:
    4    (d)  For  facilities  granted operating certificates on or after March
    5  tenth, nineteen hundred seventy-five, recognition of real property costs
    6  in such regulations shall be based upon historical costs to the owner of
    7  the facility, provided that payment for real property costs shall not be
    8  in excess of the actual debt service, including principal and  interest,
    9  and  payment  with respect to owner's equity, and further provided that,
   10  subject to federal financial participation, and subject to the  approval
   11  of  the  commissioner,  effective April first, two thousand fifteen, the
   12  commissioner may modify  such  payments  for  real  property  costs  for
   13  purposes  of  effectuating  a shared savings program, whereby facilities
   14  share a minimum of fifty percent of savings, for facilities  that  elect
   15  to  refinance  their  mortgage  loans. For purposes of this subdivision,
   16  owner's equity shall be calculated without regard to any surplus created
   17  by revaluation of assets and shall not include  amounts  resulting  from
   18  mortgage  amortization  where  the payment therefor has been provided by
   19  real property cost reimbursement; PROVIDED, HOWEVER,  AS  USED  IN  THIS
   20  SUBDIVISION  THE  TERMS  "HISTORICAL  COSTS"  AND "OWNER'S EQUITY" SHALL
   21  INCLUDE THE FULL REVALUATION OF THE ASSETS OF A FACILITY  PURCHASED  AND
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11453-05-5
       S. 5739--A                          2
    1  TRANSFERRED IMMEDIATELY FOLLOWING THE OPERATION OF SUCH FACILITY UNDER A
    2  COURT-ORDERED RECEIVERSHIP, BUT ONLY IF:
    3    (I) THE FACILITY HAS BEEN CONTINUOUSLY OPERATED AND OCCUPIED PRIMARILY
    4  WITH  PERSONS WHO ARE IN RECEIPT OF MEDICAL ASSISTANCE BENEFITS FROM THE
    5  TIME THAT THE RECEIVERSHIP WAS ESTABLISHED UNTIL THE TIME OF PURCHASE OR
    6  TRANSFER;
    7    (II) THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL HAS CONSIDERED  THE
    8  APPLICATION  FOR  THE  ESTABLISHMENT  OF A NEW OPERATOR OF A RESIDENTIAL
    9  HEALTH CARE FACILITY AT THE SITE OF THE FACILITY;
   10    (III) THE COMMISSIONER HAS REQUIRED SIGNIFICANT UPGRADE TO THE FACILI-
   11  TY'S PHYSICAL PLANT IN CONSIDERATION OF  HIS  OR  HER  APPROVAL  OF  THE
   12  CONSTRUCTION  OF  A  RESIDENTIAL HEALTH CARE FACILITY AT THE SITE OF THE
   13  FACILITY; AND
   14    (IV) THE COMMISSIONER HAS DETERMINED EACH OF THE FOLLOWING  CONDITIONS
   15  IS TRUE:
   16    (1) THERE IS A CONTINUING NEED FOR THE BEDS AT THEIR CURRENT LOCATION;
   17    (2) THE ESTIMATED TOTAL PROJECT COST FOR NEW CONSTRUCTION OF A FACILI-
   18  TY  OF  THE SAME BED CAPACITY IN THE AREA WOULD SUBSTANTIALLY EXCEED THE
   19  COMBINED PURCHASE PRICE AND TOTAL PROJECT COST FOR  APPROVED  RENOVATION
   20  COSTS OF THE REVALUED FACILITY;
   21    (3) THE PURCHASE PRICE IS REASONABLE; AND
   22    (4)  THE  CONTINUED  USE  OF THE FACILITY AS A RESIDENTIAL HEALTH CARE
   23  FACILITY IS IN THE PUBLIC INTEREST.
   24    S 2. This act shall take effect immediately; provided,  however,  that
   25  the  amendments  to  paragraph (d) of subdivision 2-a of section 2808 of
   26  the public health law made by section one of this act shall  not  affect
   27  the  expiration  of  such paragraph and shall be deemed to expire there-
   28  with.