New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter II - Administrative Rules and Regulations › Subchapter L - Hospitals and Related Facilities › Part 86 - Reporting and Rate Certifications for Facilities › Subpart 86-2 - Residential Health Care Facilities › Section 86-2.26 - Related organizations

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
					 related organization shall be defined as any entity which the residential
					 health care facility is in control of or is controlled by, either directly or
					 indirectly, or an organization or institution whose actions or policies the
					 facility has the power, directly or indirectly, to significantly influence or
					 direct, or a special purpose organization, or where an association of material
					 interest exists in an entity which supplies goods and/or services to the
					 residential health care facility, or any entity which is controlled directly or
					 indirectly by the immediate family of the operator. Immediate family shall
					 include each parent, child, spouse, brother, sister, first cousin, aunt and
					 uncle, whether such relationship arises by reason of birth, marriage or
					 adoption.
(b) The costs of goods
					 and/or services furnished to a residential health care facility by a related
					 organization are includable in the computation of the basic rate at the lower
					 of the cost to the related organization, or the market price of comparable
					 goods and/or services available in the residential health care facility's
					 region within the course of normal business operations.
(c) If the residential health care facility
					 has incurred any costs in connection with a related organization, the final
					 payment rate shall include the costs of such goods and/or services.
(d) A special purpose organization shall be
					 defined as an organization which is established to conduct certain of the
					 provider's patient-care-related or non-patient-care-related activities. The
					 special purpose organization shall be considered to be related if:
(1) the facility controls the special purpose
					 organization through contracts or other legal documents that allow direct
					 authority over the organization's activities, management and policies;
					 or
(2) the facility is, for all
					 practical purposes, the sole beneficiary of the special organization's
					 activities. The facility shall be considered the special purpose organization's
					 sole beneficiary if one or more of the three following circumstances exist:
(i) a special purpose organization has
					 solicited funds in the name of and with the expressed or implied approval of
					 the facility, and substantially all the funds solicited by the organization
					 were intended by the contributor or were otherwise required to be transferred
					 to the facility or used at its discretion or direction;
(ii) the facility has transferred some of its
					 resources to a special purpose organization, substantially all of whose
					 resources are held for the benefit of the facility; or
(iii) the facility has assigned certain of
					 its functions (such as the operation of a dormitory) to a special purpose
					 organization that is operating primarily for the benefit of the
					 facility.