New York Legislature Rejects Proposal to Grant Health Commissioner Authority to Appoint Board Members and Operators of Not-for-Profit Health Care Facilities

by Proskauer - Not for Profit/Exempt Organizations
Contact

Earlier this year, Governor Andrew Cuomo proposed changes to the New York Public Health Law which would have given the Commissioner of the Department of Health the power to remove managers of hospitals, diagnostic and treatment centers, and adult care facilities. The Commissioner would have also had the authority to appoint temporary members of the board of directors, and/or a temporary operator, of these facilities if the Commissioner deemed that there had been significant management failures that jeopardized existing or continued access to necessary services within a community (e.g., financial instability). These changes were presented in the Governor’s proposed 2012-13 Executive Budget and Reform Plan on January 17, 2012 (See the Governor’s proposal here, at page 57 – 66 and here, at page 15). The final Budget that was enacted on March 30, 2012, however, did not include the provisions which granted the Commissioner such powers over the not-for-profit health care entities. [Chapter 56 of the Laws of New York, 2012].

The relevant provisions sought to grant the Commissioner authority to:

(1)        Temporarily suspend or limit an operating certificate of a not-for-profit corporation participating in the Medicaid program without a hearing upon: a) repeated violations of PHL § 2806 (e.g., failure of a hospital to comply with the provisions of Article 28 of the public health law and the rules and regulations promulgated thereunder), b) the indictment on felony charges of any member of the hospital’s board of directors, or c) notice from the Attorney General of an action to remove a member of the corporation’s board of directors.

(2)        Temporarily appoint members of the board of directors of such not-for-profit entities during the term of the temporary suspension, as necessary, to preserve access to services within the community.

(3)        Revoke the operating certificate of an entity participating in the Medicaid program if a member of the board of the directors or a member of a limited liability company has been convicted of a class A, B or C felony, in order to ensure the effectiveness of the governing board of the facility.

(4)        Establish an operator of a general hospital, diagnostic and treatment center, or an adult care facility on a temporary basis to preserve the best interests of the residents or patients and community served by the facility when a statement of deficiencies has been issued by the Department of Health for that facility and upon a determination by the Commissioner that significant management failures exist in the facility, including but not limited to, administrative, operational or clinical deficiencies or financial instability.

Although these expansive powers were rejected by the legislature in this year’s Budget proposal, New York not-for-profit health care entities should continue to monitor proposed changes to legislation or regulations pertaining to this issue since this is not the first time that legislation aimed to expand the powers of the Commissioner over not-for-profit health care entity management has been proposed, and the issue may come up again in the future.

In addition, not-for-profit heath care entities should monitor the new reform plan initiatives proposed by Attorney General Eric Schneiderman which we summarized in a previous Blog entry. These initiatives, if enacted, may significantly impact the management and operations of not-for-profit entities in New York.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Proskauer - Not for Profit/Exempt Organizations | Attorney Advertising

Written by:

Proskauer - Not for Profit/Exempt Organizations
Contact
more
less

Proskauer - Not for Profit/Exempt Organizations on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.