Health Law Wire: Court Invalidates DOH Retroactive Clinic Rate Changes (6/15)

The Appellate Division Fourth Department recently invalidated DOH’s attempts to retroactively revise Diagnostic & Treatment Center (D&TC) rates and upheld statutory requirements for 30 day advance notice of capital rate changes. In Charles T. Sitrin Health Care Center, Inc. v. Commissioner of Health et al, the Court agreed with the clinic that it was entitled to thirty (30) days advance notice of capital rate changes pursuant to Public Health Law §2807 (7-b)(a). While this advance notice requirement was suspended by the legislature for purposes of the Department’s introduction of the APG (ambulatory patient groups) rate methodology for operating rates retroactive to September 1, 2009, the Court held that the APG legislation and advance notice suspension did not support retroactive changes to the capital rate methodology.

The Reimbursement Rate team at Bond, Schoeneck & King’s LTC practice group represented the clinic in this litigation. The full decision may be viewed at: http://www.nycourts.gov/courts/ad4/clerk/decisions/2015/06-19-15/PDF/0479.pdf.