Bill Text: NY A08497 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to a four-year demonstration project to reduce the use of temporary staffing agencies in residential healthcare facilities; removes provisions regarding a joint labor-management nursing home staffing workgroup to review and assess the impact of such demonstration project.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2024-02-07 - signed chap.27 [A08497 Detail]

Download: New_York-2023-A08497-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8497

                   IN ASSEMBLY

                                     January 4, 2024
                                       ___________

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

        AN  ACT to amend the public health law and a chapter of the laws of 2023
          amending the public health law relating to  establishing  a  four-year
          demonstration  project  and  workgroup  to reduce the use of temporary
          staffing agencies in residential healthcare facilities, as proposed in
          legislative bills numbers S. 6897 and A. 7328, in relation to a demon-
          stration project to reduce the use of temporary staffing  agencies  in
          residential healthcare facilities

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

     1    Section 1. Subparagraphs (ii) and (iii) of paragraph (c)  of  subdivi-
     2  sion  1  of section 2828 of the public health law, as added by a chapter
     3  of the laws of 2023 amending the public health law  relating  to  estab-
     4  lishing  a  four-year  demonstration project and workgroup to reduce the
     5  use of temporary staffing agencies in residential healthcare facilities,
     6  as proposed in legislative bills  numbers  S.  6897  and  A.  7328,  are
     7  amended to read as follows:
     8    (ii) [The commissioner shall establish a four-year (January first, two
     9  thousand twenty-three -- December thirty-first, two thousand twenty-six)
    10  demonstration  project to reduce the use of temporary staffing agencies.
    11  Any remittance or amounts owed to the state pursuant to subparagraph (i)
    12  of this paragraph, including, but not limited to, amounts owed  relating
    13  to  excess  revenue,  or  the  difference  between  the minimum spending
    14  requirement and the actual amount of spending on resident-facing  staff-
    15  ing  or  direct  care  staffing, as the case may be, shall be reduced as
    16  follows for reporting periods beginning on January first,  two  thousand
    17  twenty-three  and  ending on December thirty-first, two thousand twenty-
    18  six, and, to the extent the demonstration project continues, years ther-
    19  eafter:
    20    (A) a fifty percent reduction, if a  residential  healthcare  facility
    21  which  has  a  fifty  percent  or  lower use of resident-facing staffing
    22  contracted out to a temporary staffing agency for services  provided  by
    23  registered  professional nurses, licensed practical nurses, or certified

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11118-03-4

        A. 8497                             2

     1  nurse aids, has reduced its use of such contracted agency services by at
     2  least thirty percent during any year in which such remittance or amounts
     3  owed to the state are payable, as measured by subparagraph (iii) of this
     4  paragraph.
     5    (B)  a  twenty-five  percent  reduction,  if  a residential healthcare
     6  facility which has a fifty  percent  or  lower  use  of  resident-facing
     7  staffing  contracted  out  to  a  temporary staffing agency for services
     8  provided by registered professional nurses, licensed  practical  nurses,
     9  or  certified nurse aides, has reduced its use of such contracted agency
    10  services by at least twenty  percent,  but  less  than  thirty  percent,
    11  during  any  year  in which such remittance or amounts owed to the state
    12  are payable, as measured by subparagraph (iii) of this paragraph.
    13    (iii) In measuring temporary staffing agency  usage  for  purposes  of
    14  determining  the  reductions  provided  for  in  clauses  (A) and (B) of
    15  subparagraph (ii) of this paragraph,  the  following  measuring  periods
    16  shall  apply:  in two thousand twenty-three, the fourth calendar quarter
    17  of two thousand twenty-two shall be  compared  to  the  fourth  calendar
    18  quarter  of  two thousand twenty-three; for two thousand twenty-four and
    19  years thereafter, the average of  the  four  calendar  quarters  of  the
    20  previous  year  shall  be  compared  to the average of the four calendar
    21  quarters of the current year. Temporary staffing shall be measured using
    22  the publicly available U.S. Centers for Medicare and  Medicaid  Services
    23  (CMS) Payroll Based Journal (PBJ) facility-reported data.] Notwithstand-
    24  ing  the  requirements prescribed by subparagraph (i) of this paragraph,
    25  the provisions of a demonstration  project  established  pursuant  to  a
    26  chapter  of  the  laws  of  two  thousand twenty-three that amended this
    27  subparagraph shall apply to those residential health care facilities who
    28  qualify for such demonstration project.
    29    § 2. Paragraph (a) of subdivision 2 of  section  2828  of  the  public
    30  health  law,  as  amended  by a chapter of the laws of 2023 amending the
    31  public health law relating to  establishing  a  four-year  demonstration
    32  project  and  workgroup to reduce the use of temporary staffing agencies
    33  in residential healthcare facilities, as proposed in  legislative  bills
    34  numbers S. 6897 and A. 7328, is amended to read as follows:
    35    (a) "Revenue" shall mean the total operating revenue from or on behalf
    36  of residents of the residential health care facility, government payers,
    37  or third-party payers, to pay for a resident's occupancy of the residen-
    38  tial health care facility, resident care, and the operation of the resi-
    39  dential  health care facility as reported in the residential health care
    40  facility cost reports submitted to the  department;  provided,  however,
    41  that revenue shall exclude:
    42    (i) the capital portion of the Medicaid reimbursement rate;
    43    (ii)  funding  received  as  reimbursement  for  the  assessment under
    44  subparagraph (vi) of paragraph (b) of subdivision two of  section  twen-
    45  ty-eight  hundred  seven-d  of  this  article, as reconciled pursuant to
    46  paragraph (c) of subdivision ten of section twenty-eight hundred seven-d
    47  of this article; and
    48    (iii) any grant funds from the federal government for reimbursement of
    49  COVID-19 pandemic-related expenses, including but not limited  to  funds
    50  received   from  the  federal  emergency  management  agency  or  health
    51  resources and services administration[;
    52    (iv) for the first  year  of  the  demonstration  project  established
    53  pursuant  to  subparagraph  (ii)  of paragraph (c) of subdivision one of
    54  this section, all revenue, other than total Medicaid operating  revenue,
    55  if,  in  the  fourth quarter of two thousand twenty-three, a residential
    56  health care facility uses ten percent or  less  of  its  resident-facing

        A. 8497                             3

     1  staffing  who  are  contracted  out  to  a temporary staffing agency for
     2  services provided by registered professional nurses, licensed  practical
     3  nurses, or certified nurse aides;
     4    (v)  for  the  second  year  of  the demonstration project established
     5  pursuant to subparagraph (ii) of paragraph (c)  of  subdivision  one  of
     6  this  section, all revenue, other than total Medicaid operating revenue,
     7  if, in two thousand twenty-four, a residential health care facility uses
     8  nine percent or less of its resident-facing staffing who are  contracted
     9  out  to  a temporary staffing agency for services provided by registered
    10  professional nurses, licensed practical nurses, or certified nurse aids;
    11  and
    12    (vi) for the third and fourth years, respectively, and, to the  extent
    13  the  demonstration project continues, years thereafter, respectively, of
    14  the demonstration project established pursuant to subparagraph  (ii)  of
    15  paragraph  (c)  of  subdivision  one of this section, all revenue, other
    16  than total Medicaid operating revenue, if, in two  thousand  twenty-five
    17  and two thousand twenty-six, respectively, and, to the extent the demon-
    18  stration  project  continues, years thereafter, respectively, a residen-
    19  tial health care facility uses eight percent or less  of  its  resident-
    20  facing  staffing  who  are contracted out to a temporary staffing agency
    21  for services provided by registered professional nurses, licensed  prac-
    22  tical nurses, or certified nurse aides].
    23    §  3.  Section  2 of a chapter of the laws of 2023 amending the public
    24  health law relating to establishing a  four-year  demonstration  project
    25  and  workgroup to reduce the use of temporary staffing agencies in resi-
    26  dential healthcare facilities, as proposed in legislative bills  numbers
    27  S. 6897 and A. 7328, is amended to read as follows:
    28    §  2.  [Joint labor-management nursing home staffing workgroup. Begin-
    29  ning no later than July 1,  2025,  the  commissioner  shall  convene  an
    30  eight-member labor-management nursing home staffing workgroup that shall
    31  review and assess the impact of the demonstration program. The workgroup
    32  shall consist of an equal number of nursing home operators and represen-
    33  tatives  of  organized  labor who represent nursing home staff. The four
    34  nursing home operator appointees shall consist of a proportionate repre-
    35  sentation of operators, including: (i) both for-profit and  not-for-pro-
    36  fit operators; and (ii) appointees from various regions of the state. In
    37  making  such  nursing home operator appointments, the commissioner shall
    38  seek recommendations from regional or statewide associations  represent-
    39  ing  predominantly for-profit and not-for-profit nursing home operators.
    40  The commissioner and a representative of the office  of  long-term  care
    41  ombudsman shall also be members of the workgroup as ex-officio, non-vot-
    42  ing members.
    43    The  workgroup  shall  study,  evaluate, and make recommendations with
    44  respect to the  demonstration  program,  including  whether  or  not  to
    45  continue or modify the program. The workgroup shall also assess at least
    46  the  following  issues:  (i)  the impact of the demonstration program on
    47  reducing the use of staffing agencies; (ii) the impact of reduced staff-
    48  ing agencies on continued staffing shortages and meeting required staff-
    49  ing levels in various regions of the state;  and  (iii)  the  impact  of
    50  reduced  staffing  agency  employees on quality of care and nursing home
    51  operations.  In conducting its duties the workgroup shall solicit  input
    52  and  recommendations from representatives of consumers, and persons with
    53  experience in nursing home data.
    54    The workgroup shall prepare a report  reflecting  a  majority  of  the
    55  voting  members'  recommendations  no  later  than  October 1, 2026.] 1.
    56  Notwithstanding the requirements of paragraph (c) of subdivision  1  and

        A. 8497                             4

     1  paragraph (a) of subdivision 2 of section 2828 of the public health law,
     2  the  commissioner of health shall establish a four-year (January 1, 2023
     3  through December 31, 2026) demonstration project to reduce  the  use  of
     4  temporary staffing agencies. Any remittance or amounts owed to the state
     5  pursuant to subparagraph (i) of paragraph (c) of subdivision 1 and para-
     6  graph  (a)  of  subdivision  2 of section 2828 of the public health law,
     7  including, but not limited to, amounts owed relating to excess  revenue,
     8  or the difference between the minimum spending requirement and the actu-
     9  al  amount of spending on resident-facing staffing or direct care staff-
    10  ing, as the case may be, shall be reduced as follows for reporting peri-
    11  ods beginning on January 1, 2023 and ending on December 31,  2026,  and,
    12  to the extent the demonstration project continues, years thereafter:
    13    (A)  a  fifty  percent reduction, if a residential healthcare facility
    14  which has a fifty percent  or  lower  use  of  resident-facing  staffing
    15  contracted  out  to a temporary staffing agency for services provided by
    16  registered professional nurses, licensed practical nurses, or  certified
    17  nurse  aides,  has reduced its use of such contracted agency services by
    18  at least thirty percent during any year  in  which  such  remittance  or
    19  amounts  owed  to the state are payable, as measured by paragraph (C) of
    20  this subdivision.
    21    (B) a twenty-five  percent  reduction,  if  a  residential  healthcare
    22  facility  which  has  a  fifty  percent  or lower use of resident-facing
    23  staffing contracted out to a  temporary  staffing  agency  for  services
    24  provided  by  registered professional nurses, licensed practical nurses,
    25  or certified nurse aides, has reduced its use of such contracted  agency
    26  services  by  at  least  twenty  percent,  but less than thirty percent,
    27  during any year in which such remittance or amounts owed  to  the  state
    28  are payable, as measured by paragraph (C) of this subdivision.
    29    (C)  In  measuring  temporary  staffing  agency  usage for purposes of
    30  determining the reductions provided for in this section,  the  following
    31  measuring  periods  shall apply: in 2023, the fourth calendar quarter of
    32  2022 shall be compared to the fourth calendar quarter of 2023; for  2024
    33  and  years  thereafter,  the  average  of the 4 calendar quarters of the
    34  previous year shall be compared to the  average  of  the  four  calendar
    35  quarters of the current year. Temporary staffing shall be measured using
    36  the  publicly  available U.S. Centers for Medicare and Medicaid Services
    37  (CMS) Payroll Based Journal (PBJ) facility reported data.
    38    2. (A) For the first year of  the  demonstration  project  established
    39  pursuant  to  this  section,  the  definition of "revenue" as defined in
    40  paragraph (a) of subdivision 2 of section 2828 of the public health  law
    41  shall  exclude all revenue, other than total Medicaid operating revenue,
    42  if, in the fourth quarter of 2023, a residential  health  care  facility
    43  uses  ten  percent  or  less  of  its  resident-facing  staffing who are
    44  contracted out to a temporary staffing agency for services  provided  by
    45  registered  professional nurses, licensed practical nurses, or certified
    46  nurse aides.
    47    (B) For the second  year  of  the  demonstration  project  established
    48  pursuant to this section, all revenue, other than total Medicaid operat-
    49  ing  revenue,  if, in 2024, a residential health care facility uses nine
    50  percent or less of its resident-facing staffing who are  contracted  out
    51  to  a  temporary  staffing  agency  for  services provided by registered
    52  professional nurses,  licensed  practical  nurses,  or  certified  nurse
    53  aides; and
    54    (C)  for  the third and fourth years, respectively, and, to the extent
    55  the demonstration project continues, years thereafter, respectively,  of
    56  the  demonstration  project  established  pursuant  to this section, all

        A. 8497                             5

     1  revenue, other than total Medicaid operating revenue, if,  in  2025  and
     2  2026  respectively, and, to the extent the demonstration project contin-
     3  ues, years thereafter, respectively, a residential health care  facility
     4  uses  eight  percent  or  less  of  its resident-facing staffing who are
     5  contracted out to a temporary staffing agency for services  provided  by
     6  registered  professional nurses, licensed practical nurses, or certified
     7  nurse aides.
     8    3. For purposes of implementing the  demonstration  program,  after  a
     9  determination  by  the  commissioner of health that a residential health
    10  care facility is not in compliance with paragraph (c) of  subdivision  1
    11  of section 2828 of the public health law, but prior to the remittance or
    12  payment of any funds by such facility, a residential health care facili-
    13  ty  shall submit documentation to the commissioner of health that it has
    14  met the provisions of  the  demonstration  project.  Such  documentation
    15  shall  be  supported  by a verification by a certified public accountant
    16  that, based on the  PBJ  facility  reported  data  and  other  necessary
    17  supporting  documentation,  such facility is eligible for a reduction in
    18  payments pursuant to this section. Upon receipt  of  such  documentation
    19  and  verification, the commissioner will reduce any payments pursuant to
    20  this section.
    21    § 4. This act shall take effect on the  same  date  and  in  the  same
    22  manner  as  a chapter of the laws of 2023 amending the public health law
    23  relating to establishing a four-year demonstration project and workgroup
    24  to reduce the use of temporary staffing agencies in residential  health-
    25  care facilities, as proposed in legislative bills numbers S. 6897 and A.
    26  7328, takes effect.
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