New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter XI - Limits On Administrative Expenses And Executive Compensation › Part 1002 - Limits On Administrative Expenses And Executive Compensation › Section 1002.3 - Limits on executive compensation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Limits on
				executive compensation. Except if a covered provider has obtained a waiver
				pursuant to section
				1002.4 of this Part, a covered
				provider as defined in this regulation shall not use State funds or
				State-authorized payments for executive compensation given directly or
				indirectly to a covered executive in an amount greater than $199,000 per annum,
				provided, however, that the department shall review this figure annually to
				determine whether adjustment is necessary based on appropriate factors and
				subject to the approval of the Director of the Division of the Budget.
				Commencing on July 1, 2013, the limits on executive compensation pursuant to
				this Part shall be effective and applicable to each covered provider on the
				first day of each covered provider's respective covered reporting
				period.
(b) Program services
				rendered by covered executives. The limit on executive compensation pursuant to
				this Section shall not be applied to limit reimbursement with State funds or
				State-authorized payments for reasonable compensation paid to a covered
				executive for program services, including but not limited to supervisory
				services performed to facilitate the covered provider's program services,
				rendered by the executive outside of his or her managerial or policy-making
				duties. Documentation of such program services rendered shall be used by the
				covered provider to determine that percentage, if any, of the covered
				executive's compensation that is attributable to program services and that
				compensation shall not be considered in the calculation of his or her executive
				compensation. Such documentation shall be maintained and provided to the
				department or its designee upon request. Clinical and program personnel in a
				hospital or other entity providing program services, including chairs of
				departments, heads of service, chief medical officers, directors of nursing, or
				similar types of personnel fulfilling administrative functions that are
				nevertheless directly attributable to and comprise program services shall not
				be considered covered executives for purposes of limiting the use of State
				funds or State-authorized payments to compensate them.
(c) Covered providers with multiple sources
				of State funds or State-authorized payments. If a covered provider receives
				State funds or State-authorized payments from multiple sources, the provider's
				compliance with the limits on executive compensation in subdivision (a) shall
				be determined based upon the total amount of such funding received and the
				reimbursements received from all sources of State funds or State-authorized
				payments. As set forth in section
				1002.5 of this Part, the covered
				provider shall report all of such State funds and State-authorized payments in
				the form specified by the department or its designee.
(d) Subcontractors and agents of covered
				providers. The limits on executive compensation in subdivision (a) of this
				section and the reporting requirements in section
				1002.5 of this Part shall apply to
				subcontractors and agents of covered providers if and to the extent that such a
				subcontractor or agent has received State funds or State-authorized payments
				from the covered provider to provide program or administrative services during
				the reporting period and would otherwise meet the definition of a covered
				provider but for the fact that it has received State funds or State-authorized
				payments from the covered provider rather than directly from a governmental
				agency. A covered provider shall incorporate into its agreement with such a
				subcontractor or agent the terms of these regulations by reference to require
				and facilitate compliance. Upon request, covered providers shall promptly
				report to the funding or authorizing agency the identity of such subcontractors
				and agents, along with any other information requested by that agency or by the
				department or its designee. A covered provider shall not be held responsible
				for a subcontractor's or agent's failure to comply with these
				regulations.
(e) Covered providers
				receiving State funds or State-authorized payments from county or local
				government or an entity contracting on its behalf. The department or its
				designee, rather than the county or local unit of government or an entity
				contracting on behalf of such government, shall be responsible for obtaining
				the necessary reporting from and compliance by such covered providers, and
				shall issue guidance to affected county and local governments to set forth the
				procedures by which the department or its designee shall do so.
(f) Other limits on executive compensation.
				If the contract, grant, or other agreement is subject to more stringent limits
				on executive compensation, whether through law or contract, such limits shall
				control and shall not be affected by the less stringent limits imposed by these
				regulations. However, the definition and interpretation of terms in this Part
				shall not be affected or limited by the definition or interpretation of terms
				in other regulations or agreements.
(g) A covered provider's contract or other
				agreement with a covered executive agreed to prior to July 1, 2012 shall not be
				subject to the limits in this section during the term of the contract, except
				that:
(1) covered providers must apply for a
				waiver for any contracts or agreements with covered executives for executive
				compensation that exceeds or otherwise fails to comply with these regulations
				if such contracts or agreements extend beyond April 1, 2015; and
(2) renewals of such contracts or agreements
				after the completion of their term must comply with these
				regulations.