Relates to conditions under which certain residential health care facilities may withdraw equity or assets totaling five percent of reported annual revenue for patient care services without prior notification

Care homes face stricter withdrawal rules

New York residential health care facilities not run by government have a limited route to withdraw assets without advance notice. The limit is 5% of reported annual patient-care revenue, using the latest available data. Facilities must meet staffing rules during the two latest consecutive quarters with state data. They must also be outside the federal Special Focus Facility program and free of federal payment bans for new admissions. No state or federal enforcement action may have found a deficiency in the previous 18 months. Facilities using this route must still notify the state health commissioner by certified or registered mail, using an accepted form. Facilities that do not qualify must request written approval. The commissioner must decide within 60 days after receiving the request. The review can consider financial distress, money owed to the state health department, and serious care problems. Approved withdrawals can proceed; rejected facilities can pursue other remedies allowed by law. After an opportunity for a hearing, the commissioner can require repayment of assets withdrawn without prior approval. A penalty can also reach 10% of the amount withdrawn. Some provisions take effect immediately; others start one year later or follow a related 2025 law's effective date.