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History
- Referred to health
Full text
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Title of bill
An act to amend the public health law, in relation to real property capital construction costs
Purpose
To enhance the ALP rates to include the cost of new capital construction for any facility which commenced operations after December thirty first two thousand nine.
Summary of provisions
Section is an addition as subdivision 6-c of section 3614 of the public health law.
Justification
The New York State Department of Health has been in the process of eliminating approximately 6,000 nursing home beds from the statewide bed total. Through different projects, this target has not been met. Currently, approximately one third of the counties in the state have no operational ALP beds or an extraordinarily low number of ALP beds relative to other counties. Between the Burger Commission recommendations and the 1584 bed ALP application, DOH is trying to add over 1,800 new ALP beds statewide. The basis of the Burger Commission recommendations was to eliminate under utilized health care beds in different regions of the State and/or replace those beds with a lower operating cost bed. Also, the HEAL-12 project utilized the same theory of replacing/closing more expensive nursing home beds for less expensive ALP beds.
With New York State trying to reduce the overall cost of Medicaid throughout the State, fiscally sensible projects have not met these targets. Approval of this amendment, opens different regions to be enhanced to convert nursing home beds for ALP beds.
The current capital construction cost enhancement to the regionally based ALP rates 3614(6) (b) are restrictive to not for profit programs in counties with a population greater than two hundred eighty thousand persons. This amendment opens the criteria of consideration of proprietary sponsorship and other counties which do not meet the population requirement. Also, with the Burger Commission recommendations, buildings which contained all nursing home beds that were designated for conversion did not qualify to the 95 percent of certified bed requirement.
Therefore, this additional paragraph to Article 3614(6) will enhance the probability of converting nursing home beds to ALP beds, still achieve an overall cost savings to the State and add a maximum allowable construction cost bed limit similar to nursing homes which was not included in 3614(6) (b). With an effective date of April first two thousand ten for any program which commenced operations December thirty first two thousand nine, it limits this rate enhancement only to new programs.
The cost of capital construction cost and any related mortgage interest, will be allocated over the useful life of the building with cost savings from the conversion of nursing home beds to ALP beds achieved immediately.
Legislative history
None.
Fiscal implications
To be determined with the goal of overall state savings.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.