New York Ends COVID Liability Immunity & Caps Nursing Home Profits
New York Governor Cuomo has made two impactful moves in the last two weeks directed at the skilled nursing industry. On April 6 Cuomo signed S5177 into law, fully repealing the blanket liability immunity New York had granted to healthcare facilities and nursing homes from civil and criminal actions. New York legislators have already revoked the immunity from liability related to treatment under conditions resulting from circumstances associated with COVID-19 and its corresponding public health emergency. S5177 now ends the immunity from liability as a result of the diagnosis or treatment of individuals with COVID-19.
In addition, starting in January 2022, Governor Cuomo’s office announced that nursing home operators in New York will be required to return all profits in excess of 5% to the state pursuant to the budget deal reached this week. The Enacted Budget also establishes minimum thresholds for nursing home spending on direct resident care and staffing and includes plans to invest $32 million annually to implement the reforms.