New York Assembly Bill A08738

New York 2025-2026 Regular Session

• Introduced: 6/2/25
• Refer: 6/2/25
• Report Pass: 6/16/25
• Refer: 6/16/25
• Report Pass: 6/17/25

Caption

Authorizes the commissioner of health to approve certain reimbursement rates for certain programs established by not-for-profit and public skilled nursing facilities in upstate New York nursing home regions that are designed to work collaboratively on efforts to improve nursing home efficiency, staffing, and quality of care.

Summary

A08738 would amend the Public Health Law to authorize the Commissioner of Health to approve certain reimbursement rates for collaborative programs created by not-for-profit and public skilled nursing facilities in upstate New York’s five nursing home regions. The bill is aimed at regional programs that are designed to work together to improve nursing home efficiency, staffing, and quality of care. Under the bill, a regional program could be approved only if the commissioner is satisfied that it is a genuine collaborative effort and that it includes safeguards to prevent collusion or anti-competitive conduct. The measure is framed as a targeted exception to existing law, allowing these facilities to pursue shared regional initiatives while still subjecting them to state oversight.

Impact

The bill would add a new subdivision to section 2826 of the Public Health Law, giving the health commissioner explicit authority to approve reimbursement arrangements for eligible regional programs in upstate New York nursing home regions. Its practical effect would be to create a pathway for not-for-profit and public skilled nursing facilities to coordinate on staffing, efficiency, and quality-improvement efforts without running afoul of reimbursement rules, so long as the commissioner approves the program and anti-collusion safeguards are in place. The bill would primarily affect skilled nursing facilities, regional provider networks, and the Department of Health.

Sentiment

The available voting history suggests strong support and little opposition: the Assembly Ways and Means Committee advanced the bill unanimously, and the Assembly Rules Committee also reported it favorably with no dissenting votes. The bill’s framing around improving staffing and quality of care likely contributed to the positive reception. No committee transcript is available, so there is no recorded floor or hearing debate to indicate broader disagreement.

Contention

The main policy tension in the bill is between encouraging collaboration among nursing facilities and preventing anti-competitive behavior. Supporters appear to favor the ability of regional not-for-profit and public facilities to coordinate reimbursement and operations to improve care, staffing, and efficiency. The bill itself anticipates possible concerns by requiring structural safeguards against collusion and by leaving approval to the commissioner’s discretion. Any opposition would likely center on whether such collaborative programs could distort competition or create uneven reimbursement treatment across regions.