September 27, 2022

Volume XII, Number 270

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September 27, 2022

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September 26, 2022

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New York State Legislature Passes Act Enacting Moratorium on For-Profit Hospices

On June 2, 2022, the New York State Legislature passed A08472, “An Act to Amend the Public Health Law, in Relation to the Establishment, Incorporation, Construction, or Increase in Capacity of For-Profit Hospice” (“the Act”). The Act prohibits the Public Health and Health Planning Council (PHHPC) of the New York Department of Health (DOH) from approving any new applications for the establishment, incorporation, or construction of a for-profit hospice.    Additionally, the bill prohibits PHHPC from approving any increases in capacity to existing for-profit hospices in the state. The two current for-profit hospices will remain approved but cannot expand capacity.  The Act will now be presented to the Governor for signature. Once signed by the Governor, the Act will become effective immediately.

The justification provided by the New York State Legislature for enacting the Act refers to quality of care concerns at for-profit entities, particularly those owned by private equity firms or publicly traded companies.  In May 2021, an article was published in the Journal of the American Medical Association analyzing hospice tax status and ownership and quality of care provided.[1]  The article is cited by the Legislature as justification that for-profit entities do not advance the care of patients as effectively as those hospices owned by not-for-profits and have higher rates of complaint allegations and deficiencies. The Act is aimed at ensuring the prioritization of safety and care of patients by controlling ownership.  



ENDNOTES

[1] Melissa D. Aldridge, Hospice Tax Status and Ownership Matters for Patients and Families, JAMA Internal Med. (May 3, 2021).

 

*This post was co-authored by Erin Howard, legal intern at Robinson+Cole. Erin is not admitted to practice law.

Copyright © 2022 Robinson & Cole LLP. All rights reserved.National Law Review, Volume XII, Number 154
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About this Author

Leslie Levinson Health Business Attorney
Partner

Leslie Levinson is co-chair of the firm's Transactional Health Law Group and a member of both the Health Law and Business Transaction Groups. He has represented private and public businesses throughout his more than 30-year career. Although Les maintains an active business law practice, he concentrates on the transactional, regulatory, and compliance representation of health care and life science clients, including home care and hospice companies, physician practices, hospitals, information technology and medical device companies, health care equipment providers, and health care investors...

212-451-2979
Danielle H. Tangorre Attorney Health Law Robinson Cole Law Firm Albany
Partner

Danielle H. Tangorre represents and advises a broad range of health care providers, including clinical laboratories, long-term care facilities, behavioral health providers, substance abuse providers, physician group practices and licensed healthcare providers. She is a member of the Health Law Group. 

Regulatory

Danielle advises clients on operational and compliance issues, federal and state fraud and abuse laws, including the Stark law, Anti-Kickback Statute and the Eliminating Kickbacks in Recovery...

212-451-2964
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