S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2712

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
  Committee on Health

AN ACT to amend the public health law,  in  relation  to  directing  the
  commissioner of health to establish demonstration projects authorizing
  equity  investment in the operation of residential health care facili-
  ties

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  2801-a  of  the  public health law is amended by
adding a new subdivision 17 to read as follows:
  17. (A) THE COMMISSIONER SHALL ON OR BEFORE DECEMBER THIRTY-FIRST, TWO
THOUSAND FIFTEEN, ESTABLISH UP TO TWO DEMONSTRATION PROJECTS TO DEVELOP,
EVALUATE AND IMPLEMENT AN  INNOVATIVE  APPROACH  TO  ENCOURAGING  EQUITY
INVESTORS  TO  PROVIDE NEEDED FINANCIAL RESOURCES FOR AND HOLD AN EQUITY
INTEREST AS OPERATORS OF RESIDENTIAL HEALTH CARE FACILITIES. ONE PROJECT
SHALL BE IN THE UPSTATE REGION OF THE STATE.   THE  OTHER  DEMONSTRATION
PROJECT  SHALL BE IN A DOWNSTATE REGION IN THE STATE. IN ANTICIPATION OF
THE FINANCIAL IMPACT ON RESIDENTIAL  HEALTH  CARE  FACILITIES  FROM  THE
STATE'S  EXPANSION OF MANDATORY MANAGED CARE TO LONG TERM CARE SERVICES,
THE DEMONSTRATIONS SHALL BE DESIGNED TO PROMOTE THE DEVELOPMENT  OF  NEW
SOURCES  OF CAPITAL FOR THE OPERATION OF RESIDENTIAL HEALTH CARE FACILI-
TIES, AND TO MEASURE THE ABILITY OF SUCH INVESTMENT TO POSITIVELY IMPACT
FACILITIES IN TERMS OF CAPITAL IMPROVEMENTS, INVESTMENT IN NEW TECHNOLO-
GY, AND IMPROVEMENT TO THE QUALITY OF  CARE  AND  QUALITY  OF  LIFE  FOR
FACILITY RESIDENTS MEASURED BY BROADLY ACCEPTED INDUSTRY METRICS INCLUD-
ING, BUT NOT LIMITED TO, THOSE RELATED TO REDUCTION IN RATES OF REHOSPI-
TALIZATON,  MDS QUALITY INDICATORS, END OF LIFE CARE, MEDICAL ORDERS FOR
LIFE-SUSTAINING TREATMENT AND NURSING FACILITY "CULTURE  CHANGE"  INITI-
ATIVES.  THE  FACILITIES  PARTICIPATING  IN  THE  DEMONSTRATIONS AND THE
COMMISSIONER SHALL MUTUALLY DEVELOP THE APPROPRIATE METRICS  TO  MEASURE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01319-01-5

              

A. 2712                             2

SUCH  IMPACT WHICH SHALL SERVE AS THE BASIS FOR THE REPORT TO THE GOVER-
NOR AND THE LEGISLATURE REQUIRED BY PARAGRAPH (H) OF THIS SUBDIVISION.
  (B)  FOR PURPOSES OF SUCH DEMONSTRATIONS, THE COMMISSIONER MAY APPROVE
DEMONSTRATION PROJECTS EACH INVOLVING THE  PURCHASE  OF  UP  TO  FIFTEEN
EXISTING  RESIDENTIAL  HEALTH  CARE  FACILITIES  WHICH HAVE HISTORIES OF
PROVIDING HIGH QUALITY CARE TO RESIDENTS.
  (C) THE EQUITY INVESTOR SHALL PARTICIPATE IN EACH FACILITY THROUGH THE
CREATION OF LIMITED LIABILITY COMPANIES ESTABLISHED TO OPERATE THE RESI-
DENTIAL HEALTH CARE FACILITIES.
  (D) THE RESIDENTIAL HEALTH CARE FACILITIES MAY BE OPERATED BY  LIMITED
LIABILITY  COMPANIES  FORMED  PURSUANT  TO THE LIMITED LIABILITY COMPANY
LAW, WHOSE MEMBERS ARE NOT NATURAL PERSONS  SO  LONG  AS  AT  LEAST  ONE
MEMBER OF SUCH LIMITED LIABILITY COMPANIES IS A NATURAL PERSON OF SUFFI-
CIENT  EXPERIENCE  AND  EXPERTISE IN DELIVERING HIGH QUALITY NURSING AND
HEALTH RELATED CARE TO WHOM THE EQUITY INVESTOR HAS  DELEGATED,  TO  THE
SATISFACTION OF THE PUBLIC HEALTH AND HEALTH PLANNING COUNCIL, RESPONSI-
BILITY FOR THE DAY TO DAY MANAGEMENT AND OPERATION OF THE FACILITY.
  (E) THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION THREE AND PARAGRAPH
(C)  OF  SUBDIVISION  FOUR OF THIS SECTION SHALL NOT APPLY TO THE EQUITY
INVESTOR OR ITS OWNERS; PROVIDED, HOWEVER, THAT THE  PUBLIC  HEALTH  AND
HEALTH  PLANNING  COUNCIL MAY REQUIRE COMMERCIALLY REASONABLE DISCLOSURE
OF THE IDENTITY OF LIMITED LIABILITY COMPANY MEMBERS, PROVIDED THAT  THE
NUMBER OF INVESTORS IS NOT GREATER THAN THIRTY-FIVE.
  (F)  THE  PROVISIONS  OF PARAGRAPHS (E) AND (F) OF SUBDIVISION FOUR OF
THIS SECTION SHALL NOT APPLY TO RESIDENTIAL HEALTH CARE FACILITIES OPER-
ATED PURSUANT TO THIS SUBDIVISION. NOTHING IN THIS SECTION SHALL PROHIB-
IT A LIMITED LIABILITY COMPANY FROM BEING THE SOLE MEMBER OF THE LIMITED
LIABILITY COMPANIES REFERRED TO IN PARAGRAPH (C) AND (D) OF THIS  SUBDI-
VISION  PROVIDED  THAT  THE FORMER LIMITED LIABILITY COMPANY OR AT LEAST
ONE OF ITS MEMBERS CONFORMS TO THE REQUIREMENTS OF SUCH PARAGRAPHS.
  (G) RESIDENTIAL HEALTH CARE FACILITIES PARTICIPATING  IN  THIS  DEMON-
STRATION  PROGRAM  SHALL  BE  SUBJECT  TO ALL OPERATING STANDARDS AS SET
FORTH IN THIS ARTICLE AND THE REGULATIONS PROMULGATED  PURSUANT  THERETO
AND  SHALL  BE  SUBJECT TO ANY PROVISIONS OF THIS CHAPTER FOR FAILURE TO
COMPLY WITH SUCH STANDARDS.  ADDITIONALLY,  FACILITIES  IN  THIS  DEMON-
STRATION PROGRAM SHALL COMPLY WITH ALL DEPARTMENT REGULATIONS PERTAINING
TO ADMISSIONS OF MEDICAID PATIENTS.
  (H)  NO LATER THAN TWO YEARS AFTER THE FIRST FACILITY COMMENCES OPERA-
TION PURSUANT TO THIS  DEMONSTRATION  PROGRAM,  THE  COMMISSIONER  SHALL
PROVIDE  THE  GOVERNOR,  THE  TEMPORARY  PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE ASSEMBLY WITH A WRITTEN EVALUATION OF  THE  DEMONSTRATION
PROGRAMS.    SUCH  EVALUATION SHALL ADDRESS THE OVERALL EFFECTIVENESS OF
THE PROGRAM IN PROVIDING ACCESS TO  CAPITAL  INVESTMENT  BY  RESIDENTIAL
HEALTH CARE FACILITIES AND EVALUATE THE IMPACT PRIVATE EQUITY INVESTMENT
HAS  ON  THE QUALITY OF CARE AS EVIDENCED BY STAFF RETENTION AND QUALITY
INDICATORS, AND ACCESS TO CARE FOR VARIOUS RESIDENT POPULATIONS.
  (I) RESIDENTIAL HEALTH CARE FACILITIES PARTICIPATING  IN  THIS  DEMON-
STRATION  PROGRAM SHALL SUBMIT SUCH QUALITY REPORTS AS SHALL BE REQUIRED
AND DIRECTED BY THE COMMISSIONER, INCLUDING INFORMATION ON PATIENT  CARE
QUALITY  INDICATORS, STAFFING LEVELS AND PATTERNS AND ACCESS TO CARE FOR
VARIOUS PATIENT POPULATIONS.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have  become  a  law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule  or  regulation  necessary
for  the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.