§ 2805-A — Disclosure of financial transactions

New York § 2805-A

• Jurisdiction: New York
• Law PBH: Public Health
• Art. 28: Hospitals

Text

§ 2805-a. Disclosure of financial transactions. 1. Every general\nhospital operating under the provisions of this article shall file with\nthe commissioner of health within one hundred twenty days after the end\nof its fiscal year a certified report showing its financial condition\nand all of its financial transactions, including receipts and\nexpenditures during the fiscal year.\n The report shall be in such form as shall disclose all financial\ntransactions as the commissioner of health may determine necessary to\ndisclose accurately and specifically the financial condition of each\nhospital and its expenditures for the preceding year including but not\nlimited to:\n (a) Its operations and accomplishments.\n (b) Its receipts and disbursements, or revenues and expenses, during\nsuch fiscal year in accordance with generally accepted accounting\nprinciples by categories, clinical services and departments as set forth\nunder the by-laws of the institution and including but not limited to\nsalaries and other benefits, personnel expenses, operating expenses,\nequipment and supplies, and all other direct and indirect disbursements\nallocated to each department and clinical service.\n (c) Assets and liabilities at the end of its fiscal year including the\nstatus of reserves, depreciation, special or other funds, and including\nthe receipts and payments of these funds.\n (d) Loans and investments, interest, rents and profits from\ninvestments of the hospital.\n (e) The location of any real property owned by the hospital.\n 2. Every general hospital shall also submit:\n (a) A report of hospital expenses incurred in providing services\nduring the period covered by the reports required under this section for\nwhich payment was not received and is not anticipated for such periods\nfor which pool distributions pursuant to section twenty-eight hundred\nseven-c or section twenty-eight hundred seven-k of this article are made\nrelated to such expenses. The report shall be completed in accordance\nwith regulations developed by the council and approved by the\ncommissioner which shall include definitions for bad debts and charity\ncare. The report shall identify as bad debts or charity care the cost of\nservices provided to emergency inpatients, non-emergency inpatients,\nemergency ambulatory patients, clinic patients and referred or private\nambulatory patients for which the hospital did not receive and does not\nanticipate payment.\n (b) A statement of anticipated capital related expenses as defined in\nsubdivision eight of section twenty-eight hundred seven-c of this\narticle for the forthcoming calendar year at least one hundred twenty\ndays, or such shorter period as the commissioner shall determine, prior\nto the commencement of such year. The report shall be completed in\naccordance with subdivision eight of section twenty-eight hundred\nseven-c of this article and any regulations adopted pursuant thereto.\n 3. Every general hospital shall submit a monthly report of gross\ninpatient revenue received and within one hundred twenty days after the\nend of the calendar year a certified annual report of gross inpatient\nrevenue received for hospital inpatient service provided on or after\nJanuary first, nineteen hundred eighty-eight through December\nthirty-first, nineteen hundred ninety-nine and on and after January\nfirst, two thousand. The reports shall be in such form as may be\nprescribed by the commissioner to accurately disclose gross inpatient\nrevenue received.\n * 4. The commissioner may, to effectuate the purpose of this article,\nvary the nature of the report required according to the size or capacity\nof the hospital.\n The contents of all reports submitted hereunder shall be public\ninformation and such reports shall be available for public inspection\nunder such conditions as the commissioner shall prescribe.\n The commissioner of health when he has reasonable cause to believe\nthat the books or records do not accurately reflect the financial\ncondition and/or financial transactions of the hospital, may examine the\nbooks and records of the hospital, subpoena witnesses and documents and\nmake such other investigation as is necessary to enable him to determine\nthe facts relative thereto.\n * NB Effective until October 1, 2025\n * 4. (a) Every general hospital operating under the provisions of this\narticle that is required to file an IRS Form 990 in accordance with\nfederal regulations shall file with the commissioner, by July first of\neach calendar year, a completed copy of the most recent IRS Form 990 as\nsubmitted to the IRS, and the information the general hospital used to\ncomplete the IRS Form 990 in a manner prescribed by the department,\nshowing how the hospital spent community benefit expenses, which shall\ninclude but not be limited to, information to identify the specific\ncommunity benefit expenses supporting the hospital's local community.\nGeneral hospitals operating under the provisions of this article that\nare not required to file an IRS Form 990 shall be required to submit\ninformation, in a manner prescribed by the department, showing how the\nhospital spent community benefit expenses in the same manner.\n (b) The department shall compile the information reported in a report\nissued and posted on the department's website by October first, two\nthousand twenty-six, and on an annual basis thereafter, and delivered to\nthe governor, the speaker of the assembly, the temporary president of\nthe senate, the chair of the assembly health committee, the chair of the\nsenate health committee, the chair of the senate finance committee, the\nchair of the assembly ways and means committee, and the minority leaders\nof the assembly and the senate. The report shall include, at a minimum,\ninformation on:\n (i) Total community benefit expenses in the state reported by each\ngeneral hospital;\n (ii) How such community benefit expenses were distributed in the\naggregate across the following categories:\n (1) Financial assistance at cost, which shall include any free or\ndiscounted services for those who cannot afford to pay and meet the\nhospital's financial assistance criteria;\n (2) Unreimbursed costs from Medicaid;\n (3) Unreimbursed costs from the children's health insurance program or\nother means-tested government programs;\n (4) Community health improvement services and community benefit\noperations, which shall include costs associated with planning or\noperating community benefit programs, but shall not include activities\nor programs if they are provided primarily for marketing purposes or if\nthey are more beneficial to the hospital than to the community;\n (5) Health professions education programs that result in a degree or\ncertificate or training necessary for residents or interns to be\ncertified;\n (6) Subsidized health services, which shall include services with a\nnegative margin, services that meet an identifiable community need and\nservices that if no longer offered would be unavailable or fall to the\nresponsibility of another nonprofit or government agency;\n (7) Research that produces generalizable knowledge and is funded by\ntax-exempt sources; and\n (8) Cash and in-kind contributions for community benefit, for which\nin-kind donations may include the indirect cost of space donated to\ncommunity groups and the direct cost of donated food or supplies;\n (iii) Details on negative-margin services that were reported by\nhospitals as part of community benefit expenses; and\n (iv) Details on community benefit programs reported by hospitals as\npart of community benefit expenses.\n * NB Effective October 1, 2025\n * 5. The commissioner may, to effectuate the purpose of this article,\nvary the nature of the report required according to the size or capacity\nof the hospital.\n The contents of all reports submitted hereunder shall be public\ninformation and such reports shall be available for public inspection\nunder such conditions as the commissioner shall prescribe.\n The commissioner of health when he has reasonable cause to believe\nthat the books or records do not accurately reflect the financial\ncondition and/or financial transactions of the hospital, may examine the\nbooks and records of the hospital, subpoena witnesses and documents and\nmake such other investigation as is necessary to enable him to determine\nthe facts relative thereto.\n * NB Effective October 1, 2025\n