OMH-25-12-00007-P Rates of Reimbursement - Hospitals Licensed by the Office of Mental Health

6/20/12 N.Y. St. Reg. OMH-25-12-00007-P

NEW YORK STATE REGISTER

VOLUME XXXIV, ISSUE 25

June 20, 2012

RULE MAKING ACTIVITIES

OFFICE OF MENTAL HEALTH

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. OMH-25-12-00007-P

Rates of Reimbursement - Hospitals Licensed by the Office of Mental Health

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rule making to amend Part 577 of Title 14 NYCRR.

Statutory authority:

Mental Hygiene Law, sections 7.09 and 43.02

Subject:

Rates of Reimbursement - Hospitals Licensed by the Office of Mental Health.

Purpose:

To continue the 2011 rates paid to freestanding psychiatric hospitals for the 2013 rate year, effective January 1, 2013.

Text of proposed rule:

Subdivision (a) of Section 577.7 of Title 14 NYCRR is amended to read as follows:

(a) Payment rates shall be established on a prospective basis effective January 1, 1992 and each January 1st thereafter, except that the rate of payment effective January 1, 2012 through December 31, 2012, and January 1, 2013 through December 31, 2013, shall be a continuance of the rate of payment effective December 31, 2011, and shall be provisional pending the completion of an audit in accordance with section 577.6 of this Part.

Text of proposed rule and any required statements and analyses may be obtained from:

Sue Watson, NYS Office of Mental Health, 44 Holland Avenue, Albany, NY 12229, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

This rule making is filed as a Consensus rule on the grounds that its purpose is to conform to non-discretionary statutory requirements.

Chapter 53 of the Laws of 2012 includes a series of programmatic changes and cost-containment measures that are expected to generate savings in fiscal year 2012-2013 and restrain growth in future years. The 2012-2013 enacted State Budget prohibits any cost of living adjustments for the purpose of establishing rates of payment, contracts or any other form of reimbursement for mental health providers. This proposed rule ensures consistency with the enacted State Budget by amending 14 NCYRR Part 577 by freezing rates paid to freestanding psychiatric hospitals that are licensed under Article 31 of the Mental Hygiene Law and issued an operating certificate in accordance with 14 NYCRR Part 582. This rate freeze will be effective as of January 1, 2013, and shall continue the rate of payment in effect as of December 31, 2011. This continuation of current rates is consistent with the 2012-2013 enacted State budget and is the result of the serious fiscal condition of the State.

Statutory Authority: Sections 7.09 and 43.02 of the Mental Hygiene Law grant the Commissioner of the Office of Mental Health the authority and responsibility to adopt regulations that are necessary and proper to implement matters under his/her jurisdiction and to establish standards and methods for determining rates of payment made by government agencies pursuant to Title 11 of Article 5 of the Social Services Law for services provided by facilities, including hospitals, licensed by the Office of Mental Health pursuant to Article 31 of the Mental Hygiene Law. All payments by such agencies shall be at rates certified by the Commissioner and approved by the Director of the Budget. Chapter 53 of the Laws of 2012 prohibits the application of any cost of living adjustments for the purpose of establishing rates of payments, contracts or any other form of reimbursement for mental health providers.

Job Impact Statement

A Job Impact Statement is not submitted with this notice because it is evident from the subject matter of the rule making that there will be no impact upon jobs and employment opportunities. The rule is needed to provide consistency with the enacted State budget by freezing rates of payments to freestanding psychiatric hospitals that are licensed under Article 31 of the Mental Hygiene Law and issued an operating certificate in accordance with 14 NYCRR Part 582. The rate freeze will be effective January 1, 2013.