New York A 7801: Sets reimbursement rates for essential safety net hospitals

Bill Text

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A07801 Summary:

BILL NOA07801 

&nbsp

SAME ASNo Same As

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SPONSORWalker

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COSPNSRStirpe, Forrest, Davila, Burdick

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MLTSPNSR

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Amd §2807-c, Pub Health L

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Sets reimbursement rates for essential safety net hospitals at no less than regional average commercial rates for health care services provided by all hospitals in the same geographic region.

Go to top A07801 Actions:

BILL NOA07801 

&nbsp

04/11/2025referred to health

01/07/2026referred to health

Go to topA07801 Committee&nbspVotes:

Go to topA07801 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA07801 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7801

 2025-2026 Regular Sessions

 IN ASSEMBLY

 April 11, 2025
 ___________

 Introduced by M. of A. WALKER, STIRPE, FORREST, DAVILA, BURDICK -- read
 once and referred to the Committee on Health

 AN ACT to amend the public health law, in relation to setting reimburse-
 ment rates for essential safety net hospitals

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Legislative intent. Essential safety net hospitals predomi-
 2 nately serve historically marginalized neighborhoods and communities of
 3 color, with Medicaid and uninsured patients comprising 36 percent or
 4 more of their patient population. Years of disinvestment and the current
 5 financing system impedes the ability of these facilities to provide
 6 equitable care in the communities they serve. The perpetual cycle of
 7 underfunding of these hospitals prevents critical investment in services
 8 and requires annual supplemental state support to simply remain open to
 9 provide care. The legislature seeks to implement a permanent solution to
 10 address decades-long inequities faced by communities served by essential
 11 safety net hospitals. It is the intent of the legislature to provide
 12 enhanced rates to essential safety net hospitals to support investments
 13 to stabilize the safety net workforce, allow for investment in critical
 14 hospital infrastructure, and provide expanded and equitable programs and
 15 services to underserved communities. This legislation will promote
 16 access to care by ensuring that essential safety net hospitals in New
 17 York's most marginalized communities remain open and are better posi-
 18 tioned to successfully meet community needs. It is recognized that this
 19 legislation may require eligible hospitals to waive the receipt of Medi-
 20 caid Disproportionate Share Hospital allotments as a condition of
 21 receiving enhanced reimbursement rates as a result of this legislation.
 22 It is further recognized that an eligible essential safety net hospital
 23 may decline to participate in the reimbursement structure created by
 24 this legislation.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05789-02-5

 A. 7801 2

 1 § 2. Section 2807-c of the public health law is amended by adding a
 2 new subdivision 34-a to read as follows:
 3 34-a. Health equity stabilization and transformation act. (a) For the
 4 purposes of this subdivision, "essential safety net hospital" shall
 5 mean:
 6 (i) Any hospital eligible for participation in the directed payment
 7 template (DPT) preprint submitted by the state to the Centers for Medi-
 8 caid and Medicare Services for fiscal year two thousand twenty-five;
 9 (ii) Any non-state public hospital operated by a county, municipality
 10 or public benefit corporation; or
 11 (iii) Any voluntary hospital certified under this article that is a
 12 general hospital, which, in any of the previous three calendar years,
 13 has met the following criteria:
 14 (A) at least thirty-six percent of inpatient volumes are associated
 15 with Medicaid and uninsured individuals;
 16 (B) at least thirty-six percent of outpatient volumes are associated
 17 with Medicaid and uninsured individuals;
 18 (C) no more than twenty percent of inpatient volumes are associated
 19 with commercially insured individuals; and
 20 (D) the hospital is not part of a private health system with ten
 21 billion dollars or more in annual total patient revenue.
 22 (b) For purposes of this subdivision,