New York Enacts Legislation to Ban For-Profit Hospices

News Summary

New York has passed a significant bill to ban for-profit hospices, responding to concerns about the quality of care in these facilities. The legislation aims to ensure better patient care by enhancing regulations on hospice providers. Advocates are hopeful this marks a turning point in addressing the challenges faced by vulnerable patients in the state’s healthcare system.

New York Takes Action: For-Profit Hospices Set to be Banned

New York City is witnessing a significant change in its healthcare landscape as a new bill to prohibit the establishment of for-profit hospices has just passed in both legislative houses. This legislation, known as S3437 Krueger/ A565 Paulin, marks a vital step forward in addressing ongoing concerns regarding the quality of care in hospice facilities across the state.

A Long Journey to Legislation

This piece of legislation has been navigating through the twists and turns of the legislative process for three long years. Although it made strides in 2022, having passed both legislative houses, it faced a setback when it was vetoed by Governor Kathy Hochul. In her veto message, the governor expressed a desire for greater stakeholder involvement in discussions around the Master Plan for the Aging before she could lend her signature to the bill.

Fast forward to 2023 and 2024, and the bill found itself in familiar territory, making it through the Senate yet again but only partially through the legislative halls. The momentum has been gathering pace, however, as conversations between key stakeholders have reignited hope that this time around, the governor will finally sign the bill into law.

Guardrails for Patient Care

The Master Plan for Aging has been instrumental in driving discussions on how to strengthen the state’s healthcare framework. Among the recommendations made is a proposal to enhance the existing guardrails on New York’s Certificate of Need (CON) process, which regulates the establishment of new healthcare providers, including hospices.

Quality of Care Under Scrutiny

With growing concern over the potential decline in patient care quality within for-profit hospice settings, evidence has emerged suggesting that they do not measure up when compared to their non-profit counterparts. Investigations from respected institutions, including the Rand Corporation and the federal government, have highlighted significant issues affecting the quality of care at for-profit hospices.

A notable investigation in 2023 by Pro Publica alongside the Journal of the American Medical Association brought these issues to the forefront, revealing alarming facts about how for-profit hospices operate.

The Costly Business Model

One of the fundamental problems lies in the payment structure. Unlike other healthcare services that operate on a fee-for-service model, hospices receive payment on a per-patient, per-day basis. This can lead to scenarios where patients’ needs are neglected as providers focus more on dollars than on compassionate care. The profit-driven business model can forge a troubling pathway where financial gain becomes the priority over patients’ well-being.

The Rise of Investment Firms

Adding to the alarm are recent trends indicating a surge in for-profit hospices being acquired by investors and private equity firms. The concerns surrounding the quality of care have prompted calls for action to prevent less scrupulous operators from entering the hospice market. It is critical to safeguard vulnerable patients and ensure that they receive the compassionate care they deserve at the most sensitive times in their lives.

A Hopeful Outlook

As New York takes strategic steps to establish regulations that prioritize patient care, the enthusiasm among advocates for the bill is palpable. Many believe that this legislation could revolutionize hospice care in the state and protect countless individuals who rely on these services during their final journey. With anticipation now building, all eyes are on the governor for her next move. Will she sign the bill into law and fortify the commitment to prioritizing quality hospice care? Time will tell, and many are hopeful this will be a significant turning point.

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Author: HERE New York

HERE New York

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