Executive Order Authorizes New York Commissioner of Health to Revoke Operating Certificates and Place Long-Term Care Companies in Receivership for Non-Compliance
Knowledge

Executive Order Authorizes New York Commissioner of Health to Revoke Operating Certificates and Place Long-Term Care Companies in Receivership for Non-Compliance

Key Takeaways

  • New York Executive Order 202.44 permits the New York State Commissioner of Health to suspend or revoke the operating certificate of any skilled nursing or adult care facility for non-compliance with regulations and directives issued by the Commissioner of Health

  • If a facility is non-compliant, the Commissioner of Health is authorized to appoint a receiver to continue the facility’s operation on 24-hour notice to the current operator

  • It is unclear how long the temporary receivership would be permitted to remain in effect

 

On June 21, 2020, New York Governor Andrew Cuomo signed an executive order that has the potential to substantially impact skilled nursing facilities that the New York State Department of Health finds to be non-compliant with the department’s own directives or regulations.

Specifically, Executive Order 202.44 provides as follows:

The Commissioner of Health is authorized to suspend or revoke the operating certificate of any skilled nursing facility or adult care facility if it is determined that such facility has not adhered to any regulations or directives issued by the Commissioner of Health, and if determined to not be in compliance notwithstanding any law to the contrary the Commissioner may appoint a receiver to continue the operations on 24 hours’ notice to the current operator, in order to preserve the life, health and safety of the people of the State of New York.

If the state Department of Health determines a skilled nursing or adult care facility to be non-compliant with any directives or regulations, the Commissioner of Health is authorized to appoint a receiver to continue the facility’s operation on 24-hour notice to the current operator.

Critically, the order does not specify whether it is limited to directives and regulations the Commissioner of Health has propounded related to the ongoing COVID-19 situation, or if the Commissioner of Health is permitted to institute a temporary receivership for non-compliance with any directive or regulation. The order also fails to define how long the receivership can remain in place, or what a skilled nursing or adult care facility must do in order to terminate the temporary receivership. The order is in effect through July 21, 2020.

Read the order: New York State Executive Order 202.44

Goldberg Segalla’s experienced professional liability attorneys are readily available to assist skilled nursing facilities with interpreting and complying with this order. For more information, contact: