June 29, 2022
Along with various rate changes and SPA approvals (see our previous email), today’s the NY State Register also included a Repeal of Limits on Administrative Expenses and Executive Compensation. The NYS Council notified all members of this change earlier this year after speaking with the Governor’s Office who confirmed that Executive Order #6 (an EO issued by Governor Hochul in October 2021 that continued some existing Executive orders while omitting several other Executive Orders that had been implemented by former Governor Cuomo. The Executive Compensation EO was one of the Orders that Governor Hochul intentionally omitted.
—————–NY State Register, June 29, 2022
Repeal of Limits on Administrative Expenses and Executive Compensation I.D. No. HLT-26-22-00003-P 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 repeal Part 1002 of Title 10 NYCRR. Statutory authority: Social Services Law, section 363-a(2); Public Health Law, sections 201(1)(o), (p), 206(3) and (6) Subject: Repeal of Limits on Administrative Expenses and Executive Compensation.
Purpose: Repeal of Limits on Administrative Expenses and Executive Compensation. Text of proposed rule: Pursuant to the authority vested in the Commissioner of Health by section 363-a(2) of the Social Services Law and sections 201(1)(o), 201(1)(p), 206(3) and 206(6) of the Public Health Law, Part 1002 of Title 10 (Health) of the Official Compilation of Codes, Rules and Regulations of the State of New York is repealed and Chapter XI is amended, to be effective upon publication of a Notice of Adoption in the New York State Register, to read as follows: Chapter XI – [Limits on Administrative Expenses and Executive Compensation] Reserved. Text of proposed rule and any required statements and analyses may be obtained from: Katherine Ceroalo, DOH, Bureau of Program Counsel, Reg. Affairs Unit, Room 2438, ESP Tower Building, Albany, NY 12237, (518) 473-7488, email: firstname.lastname@example.org
Data, views or arguments may be submitted to: Same as above. Public comment will be received until: 60 days after publication of this notice. This rule was not under consideration at the time this agency submitted its Regulatory Agenda for publication in the Register.
Consensus Rule Making Determination Statutory Authority: The authority for these regulations is contained in section 363-a(2) of the Social Security Law and in sections 201(1)(o), 201(1)(p), 206(3) and 206(6) of the Public Health Law. Basis: Pursuant to Executive Order No. 38, issued on January 18, 2012 pertaining to limits on state-funded administrative costs and executive compensation the Department of Health was directed to adopt regulations to prevent public funds from being diverted to excessive compensation and unnecessary administrative costs. The Executive Order dictated a set percentage of State financial assistance or State-authorized payments to a provider for operating expenses that must be directed to provide direct care or services rather than go to supporting administrative costs. In addition, reimbursement with State financial assistance or State-authorized payments was not to be provided for compensation paid or given to any executive by such provider in an amount greater than $199,000 per annum, provided, however, that the commissioner of each agency could adjust this figure annually based on appropriate factors and subject to the approval of the Director of the Budget. However, on October 8, 2021, Governor Kathy Hochul issued Executive Order No. 6, discontinuing a number of unnecessary and outdated Executive Orders. Pursuant to Governor Hochul’s Executive Order No. 6, Executive Order 38, issued on January 18, 2012 pertaining to limits on state-funded administrative costs and executive compensation was discontinued. As such, Chapter XI of Title 10 of the NYCRR – Limits on Administrative Expenses and Executive Compensation – is no longer necessary