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

                                  5705

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 10, 2011
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation to prior  settlements
  and general hospitals

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

  Section 1. Paragraph (f) of subdivision 8-a of section 2807-j  of  the
public  health law, as amended by a chapter of the laws of 2011 amending
the public health law relating to authorizing the commissioner of health
to extend the use of audit findings  to  subsequent  un-audited  periods
with  regard to payments to patient service providers and assessments on
covered lives as proposed in legislative bills numbers S.  5553  and  A.
8085, is amended to read as follows:
  (f) The commissioner may enter into agreements with designated provid-
ers  of  services, and with third-party payors, in regard to which audit
findings OR PRIOR SETTLEMENTS have been made pursuant to this section or
section twenty-eight hundred seven-s  of  this  article,  extending  and
applying such audit findings OR PRIOR SETTLEMENTS, or a portion thereof,
in settlement and satisfaction of potential audit liabilities for subse-
quent  un-audited periods.  The commissioner may reduce or waive payment
of interest and penalties otherwise applicable to such subsequent  unau-
dited periods when such amounts due as a result of such agreement, other
than  reduced  or waived penalties and interest, are paid in full to the
commissioner  or  the  commissioner's  designee  within  sixty  days  of
execution  of  such  agreement  by  all  parties  to  the agreement. Any
payments made pursuant to agreements entered  into  in  accordance  with
this paragraph shall be deemed to be in full satisfaction of any liabil-
ity  arising under this section and section twenty-eight hundred seven-s
of this article, as referenced in such agreements and for the time peri-
ods covered by such agreements, provided, however, that the commissioner
may audit future retroactive adjustments to payments made for such peri-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13079-01-1
              

S. 5705                             2

ods based on reports filed by providers and payors  subsequent  to  such
agreements.
  S  2.  Paragraph (f) of subdivision 10 of section 2807-t of the public
health law, as amended by a chapter of the laws  of  2011  amending  the
public  health law relating to authorizing the commissioner of health to
extend the use of audit findings to subsequent un-audited  periods  with
regard  to  payments  to  patient  service  providers and assessments on
covered lives as proposed in legislative bills numbers S.  5553  and  A.
8085, is amended to read as follows:
  (f)  The  commissioner may enter into agreements with specified third-
party payors in regard to which audit findings OR PRIOR SETTLEMENTS have
been made pursuant to this section, extending and  applying  such  audit
findings  OR  PRIOR SETTLEMENTS, or a portion thereof, in settlement and
satisfaction of potential audit liabilities  for  subsequent  un-audited
periods.    The commissioner may reduce or waive payment of interest and
penalties otherwise applicable to such subsequent unaudited periods when
such amounts due as a result of such agreement, other  than  reduced  or
waived  interest  and penalties, are paid in full to the commissioner or
the commissioner's designee within  sixty  days  of  execution  of  such
agreement by all parties to the agreement. Any payments made pursuant to
agreements  entered  into  in  accordance  with  this paragraph shall be
deemed to be in full satisfaction of any liability  arising  under  this
section,  as  referenced  in  such  agreements  and for the time periods
covered by such agreements, provided, however, that the commissioner may
audit future retroactive adjustments to payments made for  such  periods
based on reports filed by payors subsequent to such agreements.
  S  3.    Subdivision  18 of section 2807-c of the public health law is
amended by adding a new paragraph (i) to read as follows:
  (I) THE COMMISSIONER MAY ENTER INTO AGREEMENTS WITH GENERAL  HOSPITALS
SUBJECT  TO THIS SUBDIVISION, IN REGARD TO WHICH AUDIT FINDINGS OR PRIOR
SETTLEMENTS HAVE BEEN MADE PURSUANT TO THIS SUBDIVISION,  EXTENDING  AND
APPLYING  SUCH AUDIT FINDINGS OR PRIOR SETTLEMENTS OR A PORTION THEREOF,
IN SETTLEMENT AND SATISFACTION OF POTENTIAL AUDIT LIABILITIES FOR SUBSE-
QUENT UN-AUDITED PERIODS. THE COMMISSIONER MAY REDUCE OR  WAIVE  PAYMENT
OF INTEREST AND PENALTIES OTHERWISE APPLICABLE TO SUCH SUBSEQUENT UN-AU-
DITED PERIODS WHEN SUCH AMOUNTS DUE AS A RESULT OF SUCH AGREEMENT, OTHER
THAN  REDUCED  OR WAIVED PENALTIES AND INTEREST, ARE PAID IN FULL TO THE
COMMISSIONER  OR  THE  COMMISSIONER'S  DESIGNEE  WITHIN  SIXTY  DAYS  OF
EXECUTION  OF  SUCH  AGREEMENT  BY  ALL  PARTIES  TO  THE AGREEMENT. ANY
PAYMENTS MADE PURSUANT TO AGREEMENTS ENTERED  INTO  IN  ACCORDANCE  WITH
THIS PARAGRAPH SHALL BE DEEMED TO BE IN FULL SATISFACTION OF ANY LIABIL-
ITY ARISING UNDER THIS SUBDIVISION, AS REFERENCED IN SUCH AGREEMENTS AND
FOR THE TIME PERIODS COVERED BY SUCH AGREEMENTS, PROVIDED, HOWEVER, THAT
THE  COMMISSIONER  MAY  AUDIT FUTURE RETROACTIVE ADJUSTMENTS TO PAYMENTS
MADE FOR SUCH PERIODS BASED ON REPORTS FILED BY HOSPITALS SUBSEQUENT  TO
SUCH AGREEMENTS.
  S  4.  This  act  shall  take  effect on the same date and in the same
manner as a chapter of the laws of 2011 amending the public  health  law
relating  to authorizing the commissioner of health to extend the use of
audit findings to subsequent un-audited periods with regard to  payments
to  patient  service  providers  and  assessments  on  covered  lives as
proposed in legislative bills numbers S. 5553 and A. 8085 takes  effect;
provided  that  the  amendments  to  paragraph (f) of subdivision 8-a of
section 2807-j of the public health law, made by  section  one  of  this
act,  shall  not  affect the expiration of such section and shall expire
therewith; provided, further, that the amendments to  paragraph  (f)  of

S. 5705                             3

subdivision  10  of  section  2807-t  of  the public health law, made by
section two of this act, shall not affect the expiration of such section
and shall expire therewith.