The State of New York has enacted new regulations limiting executive compensation for covered providers of services paid for by “State funds” and “State-authorized payments.” State-authorized payments are funds that are not State funds, but are distributed or disbursed upon a New York state agency’s approval, and include, but are not limited to, the federal and county portions of Medicaid program payments.
The regulations are in effect for the provider’s first annual reporting period commencing on or after July 1, 2013. Entities covered by the new regulations include both for-profit and not-for-profit entities whose total annual New York “in state” revenue is comprised of 30% or more State funds and State-authorized payments.
The limit for executive compensation for covered providers is $199,000.00. There are exceptions to the limits for clinical and programming personnel. Also, waivers are available in certain circumstances. The rules do not apply to private medical practices. Any other health care providers who receive at least 30% of their revenue from State funds or State-authorized payments must carefully review these new rules to ensure compliance.