If you own or invest in assisted living facilities in New York, recent legal changes might impact how you run your business and may even be helpful. While most of us are not in New York, we can learn from what is happening there, and may even use this information to evaluate New York for our own future investments. Here’s a simplified breakdown of what you need to know.
Several changes in law and regulations for Adult Care Facilities have occurred since September 2023:
Words Matter
The legal definition of an adult care facility has been set out comprehensively. An adult-care facility is a family-type home for adults, a shelter for adults, a residence for adults or an adult home, which provides temporary or long-term residential care and services to adults who, though not requiring continual medical or nursing care as provided by facilities licensed or operated under specific parts of the Public Health Law or Mental Hygiene Law, are by reason of physical or other limitations associated with age, physical or mental disabilities or other factors, unable or substantially unable to live independently.
Resident Fee Increases and Building Standards
In New York, the Commissioner of the Department of Health exceeded his authority in issuing regulations pertaining to the structural and environmental standards for assisted living residences (ALRs), as well as regulations governing the rights of ALR residents to notice of fee increases. The regulation on fee increases was nullified because it placed notice conditions on a change in services not contemplated by the Assisted Living Reform Act. Both regulations were found to exceed the scope of the Commissioner’s authority under the Assisted Living Reform Act and were nullified.
What this Means for RALs/Adult Care Facilities
With these changes, you now have definitive guidelines on when and how to increase fees, providing much-needed financial clarity and eliminating sudden regulatory surprises. This transparency is likely to build trust with residents, who will appreciate the predictability regarding fee changes. Additionally, you no longer need to undertake expensive structural changes to your facility, allowing you to allocate resources to other priorities. The licensing process has also become more straightforward and less burdensome, enabling quicker and less costly compliance. These developments reduce unnecessary regulatory burdens, allowing you to focus more on providing high-quality, flexible care to your residents.
Disclaimer
Please note that this information is presented for educational purposes only and does not constitute legal advice. For specific guidance tailored to your situation, consult with your attorney or contact us for further discussion.
Networking Questions
- What are the different methods for handling fee increases in RALs and what is most likely to be accepted without upsetting residents and their families?
- What are the pros and cons associated with the idea of building fee increases into the resident agreement at a flat rate each year?
