2014-15 Executive Budget Summary

Esq. Stephen B. Hanse and Carl J. Pucci in Legislative

Governor Cuomo unveiled his 2014-15 Executive Budget today. The following is a brief summary of certain initiatives affecting skilled nursing and assisted living providers included within the Governor’s the Health and Mental Hygiene Article VII budget bill.  NYSHFA/NYSCAL will follow up with a more detailed discussion of these and other provisions included within the Executive Budget.

Specifically, the Governor’s 2014-15 Executive Budget proposes to:

  • Restore the 2 percent across-the-board provider rate cut effective April 1, 2014;
  • Establish a shared savings dividend program for distributing available savings under the Medicaid Global Cap to providers and health care plans. This proposal would allow for 50 percent of available distributions to be directed to financially distressed providers;
  • Establish a $1.2 billion “Capital Restructuring Financing Program” under the joint administration of the DOH and DASNY to support bond financing of capital projects for residential health care facilities, hospitals, diagnostic and treatment centers and certain clinics;
  • Require that the nursing home fee-for-service rate shall be the guaranteed rate of payment (benchmark rate) in the absence of a negotiated rate of payment between a nursing home and a managed care plan;
  • Limit a residential health care providers’ case mix increase to a maximum of two percent for any six month period prior to January 1, 2016, or such earlier date as the Commissioner may determine;
  • Require managed care contracts with nursing homes to support “standard rates of compensation” for employees who provide inpatient nursing homes services;
  • Authorize up to five business corporations to participate in a private equity health care facility demonstration program to encourage the investment of private capital in certain health care facilities (publically traded entities would not be permitted to participate);
  • Authorize Health Facility Restructuring Program loans to include not-for-profit nursing homes and diagnostic and treatment centers;
  • Require spousal support for the costs of community-based long term care;
  • Extend the VAP program to include licensed home care services agencies providing home health services to Medicaid patients;
  • Extend for three years, through March 31, 2017, authorization for certain nursing home upper payment limits and intergovernmental transfers.

Assisted Living

With regard to assisted living providers in New York, the Governor’s budget proposes to:

  • Allow for an expedited approval process for transfers of ownership of less than 10 percent and for conversions of business organizations and operators of facilities licensed as residential care programs;
  • Extend for two years, through 2016, the planning period under which the Commissioner of Health would be authorized to phase in 6,000 ALP beds;
  • Increase the maximum respite stays for temporary residential care to non-residents within adult care facilities from 6 weeks to 120 days;
  • Reduce the look-back period for character and competence reviews from 10 to 7 years for adult care facilities and assisted living residents;
  • Create an expedited review process for the approval for up to 9 additional beds, increased from the current maximum of 5 beds, in existing enhanced assisted living residences and special needs assisted living residents;
  • Extend for three years, through March 31, 2017, authorization for non-resident services within adult homes, residences for adults, and enriched housing programs; and
  • Extend the VAP program to include licensed home care services agencies providing home health services to Medicaid patients.

As noted above, NYSHFA/NYSCAL will follow up with a more detailed discussion of these and other provisions included within the Executive Budget.

  NYSHFA CONTACT: Stephen B. Hanse, Esq.
Vice President, Governmental Affairs
518-462-4800 x25