DOH Lifted the Moratorium on LHCSAs
On or about August 17, 2022, the New York State Department of Health (“DOH”) lifted its moratorium on the issuance of new licenses to operate as Licensed Home Care Services Agencies and implemented new requirements regarding the issuance of same. These requirements take effect retroactively, and as such, as of April 1, 2020, all license applications for Licensed Home Care Services Agencies (“LHCSA”) are subject to be reviewed based on new public need and financial feasibility standards in addition to existing character and competence review processes. As such, applications for licensure may only be approved only if –
The public need for the existence of the licensed home health care service agency at the time and place and under the circumstances proposed
The character, competence and standing in the community of the applicant‘s incorporators, directs, sponsors, stockholders, or operators
The financial resources of the proposed licensed home health care service agency and its sources of financial revenues
Such other matters as it shall deem pertinent
Applications for licensure because of a change in ownership for LHCSAs actively serving at least 25 patients are not subject to public need review and are instead evaluated on financial feasibility and the character and competence of the operator.
Also exempt from public need methodology, only if the agency exclusively serves patients with the programs that follow: Assisted Living Program (ALP), Program of All-Inclusive Care for the Elderly (PACE), Nurse Family Partnership (NFP), or Continuing Care Retirement Community (CCRC). If agency applies to serve patients outside of the specific program, they will be subject to the need methodology.
Financial Feasibility
Standards for the financial feasibility review requires (at a minimum)
an examination of the sources of available working capital that the proposed licensed home care services agency operators have, with a minimum requirement equal to at least two months of estimated operating expenses of the agency;
that the application passes a reasonableness test with respect to the financial capability of the agency or sources for start-up funding; and
an examination of the financial feasibility of the agency or projections indicating that the agency‘s revenues, including but not limited to operating revenue, will be equal to or greater than projected expenditures over time.
Requirements for Approval
Applicants must go through the Public Health and Health Planning Council to obtain approval. Applicants must satisfactorily demonstrate to the council that there is a public need for the services and have adequate finance and sources of future revenue in order illustrate the ability to provide the services, to the minimum requirements.
The application is “Licensed Home Care Services Agency Application” Article 36. The application lays out which parts need to be filled out in correspondence to the services you are applying to offer.
If you have any questions regarding this new update, please do not hesitate to contact our office.