S T A T E   O F   N E W   Y O R K
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                                  8248

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 8, 2011
                               ___________

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

AN ACT to amend the public health law, in relation to capitated rates of
  payment for services provided by assisted living programs

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

  Section  1. Paragraphs (a) and (b) of subdivision 6 of section 3614 of
the public health law, paragraph (a) as amended by section 17 of part  D
of  chapter 58 of the laws of 2009 and paragraph (b) as added by chapter
645 of the laws of 2003, is amended to read as follows:
  (a) The commissioner shall, subject  to  the  approval  of  the  state
director  of  the  budget,  establish  capitated  rates  of  payment for
services provided by assisted living programs as  defined  by  paragraph
(a) of subdivision one of section four hundred sixty-one-l of the social
services  law.  Such rates of payment shall be related to costs incurred
by residential health care facilities. The rates shall reflect  (I)  the
wage equalization factor established by the commissioner for residential
health  care  facilities  in  the  region  in  which the assisted living
program is provided, and  (II) real property capital construction  costs
associated  with the construction of (A) a free-standing assisted living
program, OR (B) OTHER ASSISTED LIVING PROGRAMS FOR WHICH THE COMMISSION-
ER DETERMINES THAT SUCH REAL PROPERTY CAPITAL CONSTRUCTION COST  ADJUST-
MENT  WOULD  PROVIDE  NET  FISCAL  SAVINGS TO THE STATE; such rate shall
include a payment equal to the cost of interest  owed  and  depreciation
costs  of  such construction. The rates shall also reflect the efficient
provision of a quality and quantity of  services  to  patients  in  such
residential  health  care facilities, with needs comparable to the needs
of residents served in such assisted  living  programs.  Such  rates  of
payment  shall  be equal to fifty percent of the amounts which otherwise
would have been expended, based upon the mean prices for  the  first  of
July,  nineteen  hundred  ninety-two (utilizing nineteen hundred eighty-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11023-04-1
              

A. 8248                             2

three costs) for freestanding, low  intensity  residential  health  care
facilities  with  less than three hundred beds, and for years subsequent
to nineteen hundred ninety-two, adjusted  for  inflation  in  accordance
with  the  provisions of subdivision ten of section twenty-eight hundred
seven-c of this chapter, to provide the appropriate level  of  care  for
such  residents  in residential health care facilities in the applicable
wage equalization  factor  regions  plus  an  amount  equal  to  capital
construction  costs  associated  with  the  construction  of an assisted
living program facility as provided for in this subdivision.
  (b)  For  purposes  of  this  subdivision,   real   property   capital
construction  costs  shall  only  be  included  in  rates of payment for
assisted living programs if: (i) the facility is operated by a  not-for-
profit corporation; (ii) the facility commenced operation after nineteen
hundred  ninety-eight  and at least ninety-five percent of the certified
approved ADULT CARE FACILITY beds, AS APPLICABLE, are provided to  resi-
dents  who  are  subject  to the assisted living program; and (iii) WITH
RESPECT TO AN ASSISTED LIVING PROGRAM UNDER CLAUSE (A)  OF  SUBPARAGRAPH
(II)  OF  PARAGRAPH (A) OF THIS SUBDIVISION, the assisted living program
is in a county with a population of no  less  than  two  hundred  eighty
thousand  persons.   The methodology used to calculate the rate for such
capital construction costs shall be the same methodology used to  calcu-
late  the  capital construction costs at residential health care facili-
ties for such costs.
  S 2. This act shall take effect immediately.