Executive Order No. 38

Esq. Cornelius Murray

MEMBERSHIP ALERT – GOVERNOR CUOMO’S EXECUTIVE ORDER NO. 38 LIMITING EXECUTIVE COMPENSATION AND ADMINISTRATIVE EXPENSE

NYSHFA is aware that recently a law firm has invited health care providers to participate in a “conference call” to discuss a “potential challenge” to Governor Cuomo’s Executive Order No. 38 that places a limit on executive compensation and administrative expense.

Please be aware that ALL members of NYSHFA are already represented in a lawsuit that is presently pending in New York State Supreme Court, Albany County, challenging the validity of that Executive Order.  That suit was filed jointly with Leading Age on behalf of all Leading Age members as well.

Accordingly, there is no need for NYSHFA members to participate in yet another lawsuit.

Finally, please be advised that there are a number of other lawsuits that have been filed around the State, some of which have been decided.  The results are mixed.  All such cases are being appealed, and so it is premature to conclude at this time whether the Executive Order will or will not ultimately survive the various legal actions.  One fact, however, seems virtually certain: no matter what the initial legal decisions in the lower courts are, the final legal decision will likely not be forthcoming until the New York State’s highest court, the New York State Court of Appeals, renders a final determination.  It is too early to predict when that will occur.

To reiterate, however, no further action by NYSHFA members is necessary at this time.  We will keep you advised of all legal developments.  If you have any questions, please contact NYSHFA’s general counsel, Cornelius D. Murray, at 518-462-5601, extension 3305, or e-mail him at cmurray@oalaw.com.