New York A 6336: Directs the commissioner of health to establish demonstration projects providing for equity investment in the operation of residential health care facilities

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A06336 Summary:

BILL NOA06336 

&nbsp

SAME ASNo Same As

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SPONSORPeoples-Stokes

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COSPNSR

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MLTSPNSR

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Amd §2801-a, Pub Health L

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Directs the commissioner of health to establish demonstration projects providing for equity investment in the operation of residential health care facilities.

Go to top A06336 Actions:

BILL NOA06336 

&nbsp

03/04/2025referred to health

01/07/2026referred to health

Go to topA06336 Committee&nbspVotes:

Go to topA06336 Floor&nbspVotes:

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

Go to topA06336 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6336

 2025-2026 Regular Sessions

 IN ASSEMBLY

 March 4, 2025
 ___________

 Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the
 Committee on Health

 AN ACT to amend the public health law, in relation to directing the
 commissioner of health to establish demonstration projects authorizing
 equity investment in the operation of residential health care facili-
 ties

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

 1 Section 1. Section 2801-a of the public health law is amended by
 2 adding a new subdivision 18 to read as follows:
 3 18. (a) The commissioner shall, on or before December thirty-first,
 4 two thousand twenty-six, establish up to two demonstration projects to
 5 develop, evaluate and implement an innovative approach to encouraging
 6 equity investors to provide needed financial resources for and hold an
 7 equity interest as operators of residential health care facilities. One
 8 project shall be in the upstate region of the state. The other demon-
 9 stration project shall be in a downstate region in the state. In antic-
 10 ipation of the financial impact on residential health care facilities
 11 from the state's expansion of mandatory managed care to long term care
 12 services, the demonstrations shall be designed to promote the develop-
 13 ment of new sources of capital for the operation of residential health
 14 care facilities, and to measure the ability of such investment to posi-
 15 tively impact facilities in terms of capital improvements, investment in
 16 new technology, and improvement to the quality of care and quality of
 17 life for facility residents measured by broadly accepted industry
 18 metrics including, but not limited to, those related to reduction in
 19 rates of rehospitalizaton, MDS quality indicators, end of life care,
 20 medical orders for life-sustaining treatment and nursing facility
 21 "culture change" initiatives. The facilities participating in the demon-
 22 strations and the commissioner shall mutually develop the appropriate
 23 metrics to measure such impact which shall serve as the basis for the

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02026-01-5

 A. 6336 2

 1 report to the governor and the legislature required by paragraph (h) of
 2 this subdivision.
 3 (b) For purposes of such demonstrations, the commissioner may approve
 4 demonstration projects each involving the purchase of up to fifteen
 5 existing residential health care facilities which have histories of
 6 providing high quality care to residents.
 7 (c) The equity investor shall participate in each facility through the
 8 creation of limited liability companies established to operate the resi-
 9 dential health care facilities.
 10 (d) The residential health care facilities may be operated by limited
 11 liability companies formed pursuant to the limited liability company
 12 law, whose members are not natural persons so long as at least one
 13 member of such limited liability companies is a natural person of suffi-
 14 cient experience and expertise in delivering high quality nursing and
 15 health related care to whom the equity investor has delegated, to the
 16 satisfaction of the public health and health planning council, responsi-
 17 bility for the day to day management and operation of the facility.
 18 (e) The provisions of paragraph (b) of subdivision three and paragraph
 19 (c) of subdivision four of this section shall not apply to the equity
 20 investor or its owners; provided, however, that the public health and