Public Health Law


Article 28

HOSPITALS

Section 2800. Declaration of policy and statement of purpose. 2801. Definitions. 2801-a. Establishment or incorporation of hospitals. 2801-b. Improper practices in hospital staff appointments and extension of professional privileges prohibited. 2801-c. Injunctions. 2801-d. Private actions by patients of residental health care facilities. 2802. Approval of construction. 2803. Commissioner and council; powers and duties. 2803-a. Authority to contract. 2803-b. Uniform reports and accounting systems for hospital costs. 2803-c. Rights of patients in certain medical facilities. 2803-d. Reporting abuses of persons receiving care or services in residential health care facilities. 2803-e. Reporting incidents of possible professional misconduct. 2803-e*. Residential health care facilities; return and redistribution of unused medication. 2803-f. Respite projects. 2803-g. Board of visitors in county owned residential health care facility. 2803-h. Health related facility; pet therapy programs. 2803-i. General hospital inpatient discharge review program. 2803-j. Information for maternity patients. 2803-j. Nursing home nurse aide registry. 2803-k. In-patient nasogastric feeding procedures. 2803-l. Community service plans. 2803-m. Discharge of hospital patients to adult homes. 2803-n. Hospital care for maternity patients. 2803-o. Hospital care for mastectomy, lumpectomy, and lymph node dissection patients. 2803-p. Disclosure of information concerning family violence. 2804. Units for hospital and health-related affairs. 2804-a. State task force on clinical practice guidelines and medical technology assessment. 2805. Approval of hospitals; operating certificates. 2805-a. Disclosure of financial transactions. 2805-b. Admission of patients and emergency treatment of nonadmitted patients. 2805-c. (enacted without heading) 2805-d. Limitation of medical, dental or podiatric malpractice action based on lack of informed consent. 2805-e. Reports of residential health care facilities. 2805-f. Money deposited or advanced for admittance to nursing homes; waiver void; administration expenses. 2805-g. Maintenance of records. 2805-h. Immunizations against poliomyelitis, mumps, measles, diptheria and rubbella. 2805-i. Treatment of sexual offense victims and maintenance of evidence in a sexual offense. 2805-j. Medical, dental and podiatric malpractice prevention program. 2805-k. Investigations prior to granting or renewing privileges. 2805-l. Incident reporting. 2805-m. Confidentiality. 2805-n. Child abuse prevention. 2805-o. Identification of veteran by nursing homes and residential health care facilities. 2806. Hospital operating certificates; suspension or revocation. 2806-b. Residential health care facilities; revocation of operating certificate. 2807. Hospital reimbursement provisions; generally. 2807-a. General hospital nineteen hundred eighty-six and nineteen hundred eighty-seven inpatient rates and charges. 2807-b. Diagnostic and treatment centers; grants. 2807-c. General hospital inpatient reimbursement for annual rate periods beginning on or after January first, nineteen hundred eighty-eight. 2807-d. Hospital assessments. 2807-e. Uniform bills. 2807-f. Health maintenance organization payment factor. 2807-g. Health workforce retraining program. 2807-h. Health occupation development and workplace demonstration programs. 2807-i. Service and quality improvement grants. 2807-j. Patient services payments. 2807-k. General hospital indigent care pool. 2807-l. Health care initiatives pool distributions. 2807-m. Distribution of the professional education pools. 2807-p. Comprehensive diagnostic and treatment centers indigent care program. 2807-r. Grants for expansion of cancer services. 2807-s. Professional education pool funding. 2807-t. Assessments on covered lives. 2807-u. Transfers for tax credits. 2807-v. Tobacco control and insurance initiatives pool distributions. 2807-w. High need indigent care adjustment pool. 2808. Residental health care facilities; rates of payment. 2808-a. Liability of certain persons. 2808-b. Certification of financial statements and financial information. 2808-c. Reimbursement of general hospital inpatient services. 2808-d. Nursing home quality improvement demonstration program. 2809. Residential health care facilities; powers to require security. 2810. Residential health care facilities; receivership. 2811. Discounts and splitting fees with medical referral services; prohibited. 2812. Construction. 2813. Separability. 2814. Health networks, global budgeting, and health care demonstrations. 2815. Health facility restructuring program. 2816. Statewide planning and research cooperative system. S 2800. Declaration of policy and statement of purpose. Hospital and related services including health-related service of the highest quality, efficiently provided and properly utilized at a reasonable cost, are of vital concern to the public health. In order to provide for the protection and promotion of the health of the inhabitants of the state, pursuant to section three of article seventeen of the constitution, the department of health shall have the central, comprehensive responsibility for the development and administration of the state`s policy with respect to hospital and related services, and all public and private institutions, whether state, county, municipal, incorporated or not incorporated, serving principally as facilities for the prevention, diagnosis or treatment of human disease, pain, injury, deformity or physical condition or for the rendering of health-related service shall be subject to the provisions of this article. S 2801. Definitions. The following words or phrases, as used in this article, shall have the following meanings, unless the context otherwise requires: 1. "Hospital" means a facility or institution engaged principally in providing services by or under the supervision of a physician or, in the case of a dental clinic or dental dispensary, of a dentist, for the prevention, diagnosis or treatment of human disease, pain, injury, deformity or physical condition, including, but not limited to, a general hospital, public health center, diagnostic center, treatment center, dental clinic, dental dispensary, rehabilitation center other than a facility used solely for vocational rehabilitation, nursing home, tuberculosis hospital, chronic disease hospital, maternity hospital, lying-in-asylum, out-patient department, out-patient lodge, dispensary and a laboratory or central service facility serving one or more such institutions, but the term hospital shall not include an institution, sanitarium or other facility engaged principally in providing services for the prevention, diagnosis or treatment of mental disability and which is subject to the powers of visitation, examination, inspection and investigation of the department of mental hygiene except for those distinct parts of such a facility which provide hospital service. The provisions of this article shall not apply to a facility or institution engaged principally in providing services by or under the supervision of the bona fide members and adherents of a recognized religious organization whose teachings include reliance on spiritual means through prayer alone for healing in the practice of the religion of such organization and where services are provided in accordance with those teachings. 2. "Nursing home" means a facility providing therein nursing care to sick, invalid, infirm, disabled or convalescent persons in addition to lodging and board or health-related service, or any combination of the foregoing, and in addition thereto, providing nursing care and health-related service, or either of them, to persons who are not occupants of the facility. 3. "Residential health care facility" means a nursing home or a facility providing health-related service. 4. (a) "Hospital service" means the preadmission, out-patient, in-patient and post discharge care provided in or by a hospital, and such other items or services as are necessary for such care, which are provided by or under the supervision of a physician for the purpose of prevention, diagnosis or treatment of human disease, pain, injury, disability, deformity or physical condition, including, but not limited to, nursing service, home-care nursing and other paramedical service, ambulance service, service provided by an intern or resident in training, laboratory service, medical social service, drugs, biologicals, supplies, appliances, equipment, bed and board. (b) "Health-related service" means service in a facility or facilities which provide or offer lodging, board and physical care including, but not limited to, the recording of health information, dietary supervision and supervised hygienic services incident to such service. 5. "Construction" means the erection, building, or substantial acquisition, alteration, reconstruction, improvement, extension or modification of a hospital, including its equipment; the inspection and supervision thereof; and the studies, surveys, designs, plans, working drawings, specifications, procedures and other actions necessary thereto. 6. "Council" means the state hospital review and planning council. 7. "Government agency" means a department, board, bureau, division, office, agency, public benefit or other corporation, or any other unit, however described, of the state or a political subdivision thereof. 8. "Caretaker" means a person appointed pursuant to the provisions of section twenty-eight hundred six-b of this article, to act as a fiduciary responsible to the court which appoints him for the conserving and preserving of the rights and property of the operator of a residential health care facility, while also preserving and providing for the rights of the patients in such facility to care appropriate to their needs in a clean and wholesome environment in accordance with applicable federal and state laws and regulations. 9. "Out-patient lodge" means a facility affiliated with an institution providing hospital service, which provides therein food and overnight lodging to the chronically ill undergoing out-patient treatment for cancer at such institution. 10. "General hospital" means a hospital engaged in providing medical or medical and surgical services primarily to in-patients by or under the supervision of a physician on a twenty-four hour basis with provisions for admission or treatment of persons in need of emergency care and with an organized medical staff and nursing service, including facilities providing services relating to particular diseases, injuries, conditions or deformities. The term general hospital shall not include a residential health care facility, public health center, diagnostic center, treatment center, out-patient lodge, dispensary and laboratory or central service facility serving more than one institution. S 2801-a. Establishment or incorporation of hospitals. 1. No hospital, as defined in this article, shall be established except with the written approval of the public health council. No certificate of incorporation of a business membership or not-for-profit corporation shall hereafter be filed which includes among its corporate purposes or powers the establishment or operation of any hospital, as defined in this article, or the solicitation of contributions for any such purpose, or two or more of such purposes, except with the written approval of the public health council, and when otherwise required by law of a justice of the supreme court, endorsed on or annexed to the certificate of incorporation. No articles of organization of a limited liability company established pursuant to the New York limited liability company law which includes among its powers or purposes the establishment or operation of any hospital as defined in this article, shall be filed with the department of state except upon the approval of the public health council. 2. With respect to the incorporation or establishment of any hospital, as defined in this article, the public health council shall give written approval after all of the following requirements have been met. An application for approval of the proposed certificate of incorporation, articles of organization or establishment shall be filed with the public health council together with such other forms and information as shall be prescribed by, or acceptable to, the public health council. Thereafter, the public health council shall forward a copy of the proposed certificate or application for establishment, and accompanying documents, to the state hospital review and planning council and the health systems agency having geographical jurisdiction of the area where the proposed institution is to be located. The public health council shall act upon such application after the state council and the health systems agency have had a reasonable time to submit their recommendations. At the time members of the public health council are notified that an application is scheduled for consideration, the applicant and the health systems agency shall be so notified in writing. The public health council shall afford the applicant an opportunity to present information in person concerning the application to a committee designated by the council. The public health council shall not take any action contrary to the advice of either the state council or the health systems agency until it affords to either an opportunity to request a public hearing and, if so requested, a public hearing shall be held. If the public health council proposes to disapprove the application it shall afford the applicant an opportunity to request a public hearing. The public health council may hold a public hearing on the application on its own motion. Any public hearing held pursuant to this subdivision may be conducted by the public health council, or by any individual designated by the public health council. Beginning on January first, nineteen hundred ninety-four, and each year thereafter, a complete application received between January first and June thirtieth of each year shall be reviewed by the appropriate health systems agency and the department and presented to the state hospital review and planning council for its consideration prior to June thirtieth of the following year and a complete application received between July first and December thirty-first of each year shall be reviewed by the appropriate health systems agency and the department presented to the state hospital review and planning council for consideration prior to December thirty-first of the following year. 2-a. (a) Notwithstanding any provision of law to the contrary, the commissioner is authorized to approve a certificate of incorporation or articles of organization for establishment of a hospital, provided that: (i) the certificate of incorporation or articles of organization reflects solely a change in the form of the business organization of an existing entity which had been approved by the public health council; and (ii) every incorporator, stockholder, member, director and sponsor of the new entity shall have been an owner, partner, incorporator, stockholder, member, director or sponsor of the existing entity; and (iii) the distribution of ownership, interests and voting rights in the new entity shall be the same as in the existing entity; and (iv) there shall be no change in the operator of a hospital other than the form of its business organization, as a result of the approval of such certificate of incorporation or articles of organization. Any approval by the public health council of a person as an owner, incorporator, stockholder, member, director or sponsor in the existing entity shall be deemed to be approval for the same degree of participation in the new entity. If the proposal is acceptable to the commissioner an amended operating certificate shall be issued. In the event the commissioner determines that the proposed transfer is not approvable the application shall be referred to the public health council for its review and action. If the public health council proposes to disapprove the application, it shall afford the applicant an opportunity to request a public hearing and, if so requested, a public hearing shall be held. Any public hearing held pursuant to this subdivision may be conducted by the public health council, or by any individual designated by the public health council. 3. The public health council shall not approve a certificate of incorporation, articles of organization or application for establishment unless it is satisfied, insofar as applicable, as to (a) the public need for the existence of the institution at the time and place and under the circumstances proposed, provided, however, that in the case of an institution proposed to be established or operated by an organization defined in subdivision one of section one hundred seventy-two-a of the executive law, the needs of the members of the religious denomination concerned, for care or treatment in accordance with their religious or ethical convictions, shall be deemed to be public need; (b) the character, competence, and standing in the community, of the proposed incorporators, directors, sponsors, stockholders, members or operators; with respect to any proposed incorporator, director, sponsor, stockholder, member or operator who is already or within the past ten years has been an incorporator, director, sponsor, member, principal stockholder, principal member, or operator of any hospital, private proprietary home for adults, residence for adults, or non-profit home for the aged or blind which has been issued an operating certificate by the state department of social services, or a halfway house, hostel or other residential facility or institution for the care, custody or treatment of the mentally disabled which is subject to approval by the department of mental hygiene, no approval shall be granted unless the public health council, having afforded an adequate opportunity to members of health systems agencies having geographical jurisdiction of the area where the institution is to be located to be heard, shall affirmatively find by substantial evidence as to each such incorporator, director, sponsor, principal stockholder or operator that a substantially consistent high level of care is being or was being rendered in each such hospital, home, residence, halfway house, hostel, or other residential facility or institution with which such person is or was affiliated; for the purposes of this paragraph, the public health council shall adopt rules and regulations, subject to the approval of the commissioner, to establish the criteria to be used to determine whether a substantially consistent high level of care has been rendered, provided, however, that there shall not be a finding that a substantially consistent high level of care has been rendered where there have been violations of the state hospital code, or other applicable rules and regulations, that (i) threatened to directly affect the health, safety or welfare of any patient or resident, and (ii) were recurrent or were not promptly corrected; (c) the financial resources of the proposed institution and its sources of future revenues; and (d) such other matters as it shall deem pertinent. 3-a. Notwithstanding any other provisions of this chapter, the public health council is hereby empowered to approve the establishment, for demonstration purposes, of not more than one existing hospital within the geographical jurisdiction of each health systems agency established under the provisions of subdivision (c) of section twenty-nine hundred four of this chapter. The purposes of such hospitals shall be to offer and provide nursing home services, board and lodging to persons requiring such services within one hospital. The public health council may approve the establishment of such hospitals without regard to the requirement of public need as set forth in subdivision three of this section. 4. (a) Any change in the person who is the operator of a hospital shall be approved by the public health council in accordance with the provisions of subdivisions two and three of this section. Notwithstanding any inconsistent provision of this paragraph, any change by a natural person who is the operator of a hospital seeking to transfer part of his or her interest in such hospital to another person or persons so as to create a partnership shall be approved in accordance with the provisions of paragraph (b) of this subdivision. (b) (i) Any transfer, assignment or other disposition of ten percent or more of an interest or voting rights in a partnership or limited liability company, which is the operator of a hospital to a new partner or member, shall be approved by the public health council in accordance with the provisions of subdivisions two and three of this section, except that: (A) any such change shall be subject to the approval by the public health council in accordance with paragraph (b) of subdivision three of this section only with respect to the new partner or member, and any remaining partners or members who have not been previously approved for that facility in accordance with such paragraph, and (B) such change shall not be subject to paragraph (a) of subdivision three of this section. (ii) With respect to a transfer, assignment or disposition involving less than ten percent of an interest or voting rights in such partnership or limited liability company to a new partner or member, no prior approval of the public health council shall be required. However, no such transaction shall be effective unless at least ninety days prior to the intended effective date thereof, the partnership or limited liability company fully completes and files with the public health council notice on a form, to be developed by the public health council, which shall disclose such information as may reasonably be necessary for the public health council to determine whether it should bar the transaction for any of the reasons set forth in item (A), (B), (C) or (D) below. Within ninety days from the date of receipt of such notice, the public health council may bar any transaction under this subparagraph: (A) if the equity position of the partnership or limited liability company, determined in accordance with generally accepted accounting principles, would be reduced as a result of the transfer, assignment or disposition; (B) if the transaction would result in the ownership of a partnership or membership interest by any persons who have been convicted of a felony described in subdivision five of section twenty-eight hundred six of this article; (C) if there are reasonable grounds to believe that the proposed transaction does not satisfy the character and competence criteria set forth in subdivision three of this section; or (D) if the transaction, together with all transactions under this subparagraph for the partnership, or successor, during any five year period would, in the aggregate, involve twenty-five percent or more of the interest in the partnership. The public health council shall state specific reasons for barring any transaction under this subparagraph and shall so notify each party to the proposed transaction. (iii) With respect to a transfer, assignment or disposition of an interest or voting rights in such partnership or limited liability company to any remaining partner or member, which transaction involves the withdrawal of the transferor from the partnership or limited liability company, no prior approval of the public health council shall be required. However, no such transaction shall be effective unless at least ninety days prior to the intended effective date thereof, the partnership or limited liability company fully completes and files with the public health council notice on a form, to be developed by the public health council, which shall disclose such information as may reasonably be necessary for the public health council to determine whether it should bar the transaction for the reason set forth below. Within ninety days from the date of receipt of such notice, the public health council may bar any transaction under this subparagraph if the equity position of the partnership or limited liability company, determined in accordance with generally accepted accounting principles, would be reduced as a result of the transfer, assignment or disposition. The public health council shall state specific reasons for barring any transaction under this subparagraph and shall so notify each party to the proposed transaction. (c) Any transfer, assignment or other disposition of ten percent or more of the stock or voting rights thereunder of a corporation which is the operator of a hospital or which is a member of a limited liability company which is the operator of a hospital to a new stockholder, or any transfer, assignment or other disposition of the stock or voting rights thereunder of such a corporation which results in the ownership or control of more than ten percent of the stock or voting rights thereunder of such corporation by any person not previously approved by the public health council for that corporation shall be subject to approval by the public health council in accordance with the provisions of subdivisions two and three of this section and rules and regulations pursuant thereto; except that: any such transaction shall be subject to the approval by the public health council in accordance with paragraph (b) of subdivision three of this section only with respect to a new stockholder or a new principal stockholder; and shall not be subject to paragraph (a) of subdivision three of this section. In the absence of such approval, the operating certificate of such hospital shall be subject to revocation or suspension. No prior approval of the public health council shall be required with respect to a transfer, assignment or disposition of ten percent or more of the stock or voting rights thereunder of a corporation which is the operator of a hospital or which is a member of a limited liability company which is the owner of a hospital to any person previously approved by the public health council for that corporation. However, no such transaction shall be effective unless at least ninety days prior to the intended effective date thereof, the stockholder completes and files with the public health council notice on forms to be developed by the public health council, which shall disclose such information as may reasonably be necessary for the public health council to determine whether it should bar the transaction. Such transaction will be final as of the intended effective date unless, prior thereto, the public health council shall state specific reasons for barring such transactions under this paragraph and shall notify each party to the proposed transaction. Nothing in this paragraph shall be construed as permitting a person not previously approved by the public health council for that corporation to become the owner of ten percent or more of the stock of a corporation which is the operator of a hospital or which is a member of a limited liability company which is the owner of a hospital without first obtaining the approval of the public health council. (d) No hospital shall be approved for establishment which would be operated by a limited partnership, or by a partnership any of the members of which are not natural persons. (e) No hospital shall be approved for establishment which would be operated by a corporation any of the stock of which is owned by another corporation or a limited liability company if any of its corporate members` stock is owned by another corporation. (f) No corporation shall be a member of a limited liability company authorized to operate a hospital unless its proposed incorporators, directors, stockholders or principal stockholders shall have been approved in accordance with the provisions of subdivision three of this section applicable to the approval of the proposed incorporators, directors or stockholders of any other corporation requiring approval for establishment. (g) A natural person appointed as trustee of an express testamentary trust, created by a deceased sole proprietor, partner or shareholder in the operation of a hospital for the benefit of a person of less than twenty-five years of age, may, as the trustee, apply pursuant to subdivision two of this section for approval to operate or participate in the operation of a facility or interest therein which is included in the corpus of such trust until such time as all beneficiaries attain the age of twenty-five, unless the trust instrument provides for earlier termination, or such beneficiaries receive establishment approval in their own right, or until a transfer of the trust corpus is approved by the public health council in accordance with this subdivision and subdivisions two and three of this section, whichever first occurs. The public health council shall not approve any such application unless it is satisfied as to: (i) the character, competence and standing in the community of each proposed trustee operator pursuant to the provisions of paragraph (b) of subdivision three of this section; and (ii) the ability of the trustee under the terms of the trust instrument to operate or participate in the operation of the hospital in a manner consistent with this chapter and regulations promulgated pursuant thereto. (h) A natural person appointed conservator pursuant to article eighty-one of the mental hygiene law, or a natural person appointed committee of the property of an incompetent pursuant to article eighty-one of the mental hygiene law or a sole proprietor, partner or shareholder of a hospital, may apply pursuant to subdivision two of this section for approval to operate a hospital owned by the conservatee or incompetent for a period not exceeding two years or until a transfer of the hospital is approved by the public health council in accordance with subdivisions two and three of this section, whichever occurs first. The public health council shall not approve any such application unless it is satisfied as to: (i) the character, competence and standing in the community of the proposed conservator operator or committee operator pursuant to the provisions of paragraph (b) of subdivision three of this section; and (ii) the ability of the conservator or committee under the terms of the court order to operate the hospital in a manner consistent with this chapter and regulations promulgated pursuant thereto. 5. Except as otherwise hereinafter provided, no county, city, town, village or other governmental subdivision shall establish or create any agency concerned with the establishment of any hospital as defined in this article without securing the written approval of the public health council in accordance with the requirements and procedures of subdivisions two and three of this section with respect to certificates of incorporation, articles of organization and establishment, except that the requirements relating to the proposed incorporators, directors and sponsors shall not apply. The preceding shall not apply to the establishment of state hospitals by the state of New York or to the establishment of municipal hospitals by the city of New York. 6. No corporation having power to solicit contributions for charitable purposes shall be deemed to have authority to solicit contributions for any purpose for which the approval of the public health council is required, unless the certificate of incorporation specifically makes provision therefor, and the written approval of the public health council is endorsed on or annexed to such certificate. 7. Where such approval has not been obtained the public health council may institute and maintain an action in the supreme court through the attorney general to procure a judgment dissolving and vacating or annulling the certificate of incorporation of (a) any such corporation, or (b) any corporation hereafter incorporated, the name, purposes, objects or the activities of which in any manner may lead to the belief that the corporation possesses or may exercise any of such purposes. 8. No corporation heretofore formed, having among its powers the power to solicit contributions for charitable purposes, may solicit or continue to solicit contributions for a purpose for which the approval of the public health council is required without the written approval of the public health council, except a corporation which, prior to June first, nineteen hundred seventy, had received the approval of the state board of social welfare of a certificate of incorporation containing such power. If such approval is not obtained and the corporation continues to solicit or to receive contributions for such purpose or advertises that it has obtained such approval, the public health council may institute and maintain an action in the supreme court through the attorney general to procure a judgment dissolving and vacating or annulling the certificate of incorporation of any such corporation. 9. Only a natural person, a partnership or limited liability company may hereafter undertake to engage in the business of operating or conducting a hospital, as defined in this article, for profit, except that: (a) a person, partnership or corporation which owned and was operating a hospital on April fourth, nineteen hundred fifty-six, may continue to own and operate such hospital; (b) a business corporation may, with the approval of the public health council, and in accordance with the provisions of subdivisions two and three of this section, undertake to engage in the business of operating or conducting a hospital, as defined in this article for profit, provided that such corporation shall not discriminate because of race, color, creed, national origin or sponsor in admission or retention of patients; (c) a business corporation owning and operating a nursing home on May twenty-second, nineteen hundred sixty-nine, in accordance with applicable provisions of law, may continue to own and operate such nursing home; (d) a person who, or a partnership which, is operating a private proprietary nursing home in accordance with applicable provisions of law may, with the approval of the public health council, and in accordance with the provisions of subdivision three of this section and any rules and regulations thereunder form a business corporation to engage in the business of operating or conducting such nursing home, provided, however, that such corporation shall not discriminate because of race, color, creed, national origin or sponsor in admission or retention of patients; (e) a business corporation operating a nursing home, which corporation was formed with the approval of the state board of social welfare, may continue to own and operate such nursing home. 10. (a) The public health council, by a majority vote of its members, shall adopt and amend rules and regulations, to effectuate the provisions and purposes of this section, and to provide for the revocation, limitation or annulment of approvals of establishment. (b) (i) No approval of establishment shall be revoked, limited or annulled without first offering the person who received such approval the opportunity of requesting a public hearing. (ii) The commissioner, at the request of the public health council, shall fix a time and place for any such hearing requested. (iii) Notice of the time and place of the hearing shall be served in person or mailed by registered mail to the person who has received establishment approval at least twenty-one days before the date fixed for the hearing. (iv) Such person shall file with the department, not less than eight days prior to the hearing, a written answer. (v) All orders or determinations hereunder shall be subject to review as provided in article seventy-eight of the civil practice law and rules. Application for such review must be made within sixty days after service in person or by registered mail of a copy of such order or determination. 11. Any person filing a proposed certificate of incorporation, articles of organization or an application for establishment of a residential health care facility for approval of the public health council shall file with the commissioner such information on the ownership of the property interests in such facility as shall be prescribed by regulation, including the following: (a) The name and address and a description of the interest held by each of the following persons: (i) any person, who directly or indirectly, beneficially owns any interest in the land on which the facility is located; (ii) any person who, directly or indirectly, beneficially owns any interest in the building in which the facility is located; (iii) any person who, directly or indirectly, beneficially owns any interest in any mortgage, note, deed of trust or other obligation secured in whole or in part by the land on which or building in which the facility is located; and (iv) any person who, directly or indirectly, has any interest as lessor or lessee in any lease or sub-lease of the land on which or the building in which the facility is located. (b) If any person named in response to paragraph (a) of this subdivision is a partnership or limited liability company, then the name and address of each partner or member. (c) If any person named in response to paragraph (a) of this subdivision is a corporation, other than a corporation whose shares are traded on a national securities exchange or are regularly quoted in an over-the-counter market or which is a commercial bank, savings bank or savings and loan association, then the name and address of each officer, director, stockholder and, if known, each principal stockholder and controlling person of such corporation. (d) If any corporation named in response to paragraph (a) of this subdivision is a corporation whose shares are traded on a national securities exchange or are regularly quoted in an over-the-counter market or which is a commercial bank, savings bank or savings and loan association, then the name and address of the principal executive officers and each director and, if known, each principal stockholder of such corporation. 12. The following definitions shall be applicable to this section: (a) "Controlling person" of any corporation, partnership, limited liability company or other entity means any person who by reason of a direct or indirect ownership interest (whether of record or beneficial) has the ability, acting either alone or in concert with others with ownership or membership interests, to direct or cause the direction of the management or policies of said corporation, partnership, limited liability company or other entity. Neither the commissioner nor any employee of the department nor any member of a local legislative body of a county or municipality, nor any county or municipal official except when acting as the administrator of a residential health care facility, shall, by reason of his or her official position, be deemed a controlling person of any corporation, partnership, limited liability company or other entity, nor shall any person who serves as an officer, administrator or other employee of any corporation, partnership, limited liability company or other entity or as a member of a board of directors or trustees of any corporation be deemed to be a controlling person of such corporation, partnership, limited liability company or other entity as a result of such position or his or her official actions in such position. (b) "Principal stockholder" of a corporation means any person who beneficially owns, holds or has the power to vote, ten percent or more of any class of securities issued by said corporation. (c) "Principal member" of a limited liability company means any person who beneficially owns, holds or has the power to vote, ten percent or more interest determined by such member`s share in the current profits of the limited liability company. 13. Any person who operates a hospital without the written approval of the public health council shall be liable to the people of the state for a civil penalty not to exceed ten thousand dollars for every such violation. 14. (a) The public health council may approve the establishment of not-for-profit rural health networks as defined in article twenty-nine-A of this chapter, pursuant to the provisions of subdivisions two and three of this section, except that the public health council shall not consider the public need for and financial resources and sources of future revenues of such networks which do not seek approval to operate a hospital. In addition to character and competence, the public health council may take into consideration available network plans. (b) The board of directors or trustees of a not-for-profit rural health network shall be comprised of a representative or representatives of participating providers and members of the general public residing in the area served by such network. S 2801-b. Improper practices in hospital staff appointments and extension of professional privileges prohibited. 1. It shall be an improper practice for the governing body of a hospital to refuse to act upon an application for staff membership or professional privileges or to deny or withhold from a physician, podiatrist, optometrist or dentist staff membership or professional privileges in a hospital, or to exclude or expel a physician, podiatrist, optometrist or dentist from staff membership in a hospital or curtail, terminate or diminish in any way a physician`s, podiatrist`s, optometrist`s or dentist`s professional privileges in a hospital, without stating the reasons therefor, or if the reasons stated are unrelated to standards of patient care, patient welfare, the objectives of the institution or the character or competency of the applicant. It shall be an improper practice for a governing body of a hospital to refuse to act upon an application or to deny or to withhold staff membership or professional privileges to a podiatrist based solely upon a practitioner`s category of licensure. 2. Any person claiming to be aggrieved by an improper practice as defined in this section may, by himself or his attorney, make, sign and file with the public health council a verified complaint in writing which shall state the name and address of the hospital whose governing body is alleged to have committed the improper practice complained of and which shall set forth the particulars thereof and contain such other information as may be required by the council. 3. After the filing of any such complaint, the public health council shall make a prompt investigation in connection therewith. In conducting such investigation, the public health council is authorized to receive reports from the governing body of the hospital and the complainant, as the case may be, and the furnishing of such information to the public health council, or by the council to the governing body or complainant, shall not subject any person or hospital to any action for damages or other relief. Such information when received by the public health council, or its authorized representative, shall be kept confidential and shall be used solely for the purposes of this section and the improvement of the standards of patient care and patient welfare. The records of such proceedings shall not be admissible as evidence in any other action of any kind in any court or before any other tribunal, board, agency, or person. If the council shall determine after such investigation that cause exists for crediting the allegations of the complaint, the council shall promptly so advise the governing body of the hospital against which the complaint was made, and shall direct that such governing body make a review of the actions of such body in denying or withholding staff membership or professional privileges from the complainant physician, podiatrist, optometrist or dentist or in excluding or expelling such physician, podiatrist, optometrist or dentist from staff membership or in curtailing, terminating or in any way diminishing such physician`s, podiatrist`s, optometrist`s or dentist`s professional privileges in the hospital. 4. The provisions of this section shall not be deemed to impair or affect any other right or remedy. S 2801-c. Injunctions. The supreme court may enjoin violations or threatened violations of any provisions of this article; and it may enjoin violations of the regulations of the department adopted thereunder. Upon request of the public health council or the commissioner, the attorney general shall maintain an action in the supreme court in the name of the people of the state to enjoin any such violation. Notwithstanding any limitation of the civil practice law and rules, such court may, on motion and affidavit, and upon proof that such violation is one which reasonably may result in injury to any person, whether or not such person is a party to such action, grant a temporary injunction upon such terms as may be just, pending the determination of the action. No security on the part of the people of this state shall be required. In any action for injunction brought pursuant to this article, any finding of the public health council or the commissioner or hearing officer designated by either shall be prima facie evidence of the fact or facts found therein. S 2801-d. Private actions by patients of residential health care facilities. 1. Any residential health care facility that deprives any patient of said facility of any right or benefit, as hereinafter defined, shall be liable to said patient for injuries suffered as a result of said deprivation, except as hereinafter provided. For purposes of this section a "right or benefit" of a patient of a residential health care facility shall mean any right or benefit created or established for the well-being of the patient by the terms of any contract, by any state statute, code, rule or regulation or by any applicable federal statute, code, rule or regulation, where noncompliance by said facility with such statute, code, rule or regulation has not been expessly authorized by the appropriate governmental authority. No person who pleads and proves, as an affirmative defense, that the facility exercised all care reasonably necessary to prevent and limit the deprivation and injury for which liability is asserted shall be liable under this section. 2. Upon a finding that a patient has been deprived of a right or benefit and that said patient has been injured as a result of said deprivation, and unless there is a finding that the facility exercised all care reasonably necessary to prevent and limit the deprivation and injury to the patient, compensatory damages shall be assessed in an amount sufficient to compensate such patient for such injury, but in no event less than twenty-five percent of the daily per-patient rate of payment established for the residential health care facility under section twenty-eight hundred seven of this article or, in the case of a residential health care facility not having such an established rate, the average daily total charges per patient for said facility, for each day that such injury exists. In addition, where the deprivation of any such right or benefit is found to have been willful or in reckless disregard of the lawful rights of the patient, punitive damages may be assessed. 3. A patient residing in a residential health care facility may also maintain an action pursuant to this section for any other type of relief, including injunctive and declaratory relief, permitted by law. 4. Any damages recoverable pursuant to this section, including minimum damages as provided by subdivision two of this section, may be recovered in any action which a court may authorize to be brought as a class action pursuant to article nine of the civil practice law and rules. The remedies provided in this section are in addition to and cumulative with any other remedies available to a patient, at law or in equity or by administrative proceedings. Exhaustion of any available administrative remedies shall not be required prior to commencement of suit hereunder. 5. The amount of any damages recovered by a patient, in an action brought pursuant to this section shall be exempt for purposes of determining initial or continuing eligibility for medical assistance under title eleven of article five of the social services law and shall neither be taken into consideration nor required to be applied toward the payment or part payment of the cost of medical care or services available under said title eleven. 6. If judgment in an action maintained under this section is rendered in favor of the plaintiff, in its discretion the court may, if justice requires, award attorneys` fees to the plaintiff based on the reasonable value of legal services rendered and payable by the defendant. 7. Any waiver by a patient or his legal representative of the right to commence an action under this section, whether oral or in writing, shall be null and void and without legal force or effect. 8. Any party to an action brought under this section shall be entitled to a trial by jury and any waiver of the right to a trial by a jury, whether oral or in writing, prior to the commencement of an action, shall be null and void, and without legal force or effect. 9. No insurance premium or part thereof paid by any residential health care facility which is attributable solely to insurance against liability pursuant to this section shall be allowed as a reimbursable cost for purposes of any proposed rate schedule for payments for hospital or health-related service which the commissioner shall determine and certify pursuant to section twenty-eight hundred seven of this chapter. 10. a. No person shall discriminate against any patient of a residential health care facility because such patient has brought or caused to be brought any action pursuant to this section, or against any patient or employee of a residential health care facility because such patient or employee has given or provided or is to give or provide testimony or other evidence for purposes of said action. b. Any patient who has reason to believe that he or she may have been discriminated against in violation of this subdivision may, within thirty days after such alleged violation occurs, file a complaint with the commissioner. The commissioner shall investigate any such complaint, and shall, if such complaint is deemed meritorious, serve upon the administrator of the subject facility, in his capacity as a representative of the facility, either by personal service or by certified mail addressed to the administrator in care of the facility, return receipt requested, a complaint stating the substance of the alleged discrimination with reasonable particularity. A hearing shall be conducted in accordance with section twelve-a of this chapter within thirty days of the service of such complaint. The hearing officer shall make a report of his findings to the commissioner, who, if he determines that a violation of this subdivision has occurred, may grant whatever relief is necessary and appropriate to remedy the violation, including, but not limited to readmittance of patients wrongfully discharged. Any such order of the commissioner shall be appealable by a proceeding under article seventy-eight of the civil practice law and rules. c. Whenever the commissioner has issued an order as provided in this subdivision he may apply to any court of competent jurisdiction for the enforcement of such order. d. Any action taken by the commissioner in accordance with the provisions of this subdivision shall not be exclusive, and may be taken in conjunction with an action for a civil penalty for a violation of paragraph a of this subdivision, or any private civil action brought by an injured party, or both. e. Any employee who has reason to believe that he or she may have been discriminated against in violation of this subdivision may bring a proceeding in accordance with the provisions of article fifteen of the executive law. S 2802. Approval of construction. The construction of a hospital, whether public or private, incorporated or not incorporated, shall require the prior approval of the commissioner. 1. An application for such construction shall be filed with the department, together with such other forms and information as shall be prescribed by, or acceptable to, the department. Thereafter the department shall forward a copy of the application and accompanying documents to the state hospital review and planning council and the health systems agency having geographical jurisdiction of the area where the hospital is located. 2. The commissioner shall not act upon an application for construction of a hospital until the state hospital review and planning council and the health systems agency have had a reasonable time to submit their recommendations, and unless (a) the applicant has obtained all approvals and consents required by law for its incorporation or establishment (including the approval of the public health council pursuant to the provisions of this article) provided, however, that the commissioner may act upon an application for construction by an applicant possessing a valid operating certificate when the application qualifies for review without the recommendation of the council pursuant to regulations adopted by the council and approved by the commissioner; and (b) the commissioner is satisfied as to the public need for the construction, at the time and place and under the circumstances proposed, provided however that, in the case of an application by a hospital established or operated by an organization defined in subdivision one of section four hundred eighty-two-a of the social services law, the needs of the members of the religious denomination concerned, for care or treatment in accordance with their religious or ethical convictions, shall be deemed to be public need. 2-a. The council shall afford the applicant an opportunity to present information in person concerning an application to a committee designated by the council. 2-b. Beginning on January first, nineteen hundred ninety-four, and each year thereafter, a complete application received between January first and June thirtieth of each year shall be reviewed by the appropriate health systems agency and the department and presented to the state hospital review and planning council for its consideration prior to June thirtieth of the following year and a complete application received between July first and December thirty-first of each year shall be reviewed by the appropriate health systems agency and the department and presented to the state hospital review and planning council for consideration prior to December thirty-first of the following year. 3. Subject to the provisions of paragraph (b) of subdivision two, the commissioner in approving the construction of a hospital shall take into consideration and be empowered to request information and advice as to (a) the availability of facilities or services such as preadmission, ambulatory or home care services which may serve as alternatives or substitutes for the whole or any part of the proposed hospital construction; (b) the need for special equipment in view of existing utilization of comparable equipment at the time and place and under the circumstances proposed; (c) the possible economies and improvements in service to be anticipated from the operation of joint central services including, but not limited to laboratory, research, radiology, pharmacy, laundry and purchasing; (d) the adequacy of financial resources and sources of future revenue; and (e) whether the facility is currently in substantial compliance with all applicable codes, rules and regulations, provided, however, that the commissioner shall not disapprove an application solely on the basis that the facility is not currently in substantial compliance, if the application is specifically: (i) to correct life safety code or patient care deficiencies; (ii) to correct deficiencies which are necessary to protect the life, health, safety and welfare of facility patients, residents or staff; (iii) for replacement of equipment that no longer meets the generally accepted operational standards existing for such equipment at the time it was acquired; and (iv) for decertification of beds and services. 3-a. Review of applications from hospitals in epidemic areas and hospitals serving state correctional facilities to renovate or provide for capital improvement for the purpose of controlling the spread of tuberculosis infection may be approved by the commissioner, who to the extent practicable may, but shall not be required to, consider the recommendations of the health systems agency and the state hospital review and planning council for applications for which he grants approval. In such cases the commissioner shall take further measures necessary to expedite departmental reviews for such approval. 3-b. Review of applications from rural hospitals seeking approval in the swing bed program, authorized pursuant to section twenty-eight hundred three of this article, may be approved by the commissioner who, to the extent practicable, may consider the recommendations of the respective health systems agency. In such cases, the commissioner shall take further measures necessary to expedite departmental reviews for such approval. 3-c. An application shall state the proposed site or location of the proposed construction. Where the applicant changes the site or location after approval of the application, the commissioner may, subject to regulations under this article, approve the change upon a finding that the change is in the best interest of the service area. In making such determination, the commissioner may seek a review of the proposed change by the state hospital review and planning council and the health systems agency having geographical jurisdiction. 4. No government agency shall construct any hospital without securing the written approval of the commissioner in accordance with the applicable requirements and procedures of the preceding subdivisions. 5. If the commissioner proposes to disapprove an application for construction of a hospital, he shall afford the applicant an opportunity to request a public hearing. The commissioner shall not take any action contrary to the advice of the health systems agency until he affords an opportunity to the agency to request a public hearing and, if so requested, a public hearing shall be held. 6. The commissioner, on his own motion, may hold a public hearing on an application for construction of a hospital. 7. The commissioner shall charge to applicants for construction of hospitals the following fees and charges for administrative services so as to recover departmental costs in performing these functions. Each applicant for construction of a hospital shall pay to the department an application fee of one thousand two hundred fifty dollars. At such time as the commissioner`s written approval is granted, each applicant shall pay an additional fee of forty-five hundredths of one percent of the total capital value of the application, provided that only those applications requiring review by the State Hospital Review and Planning Council shall be subject to such fee. The fees and charges paid by an applicant pursuant to this subdivision for any application for construction of a hospital approved in accordance with this section shall be deemed allowable capital costs in the determination of reimbursement rates established pursuant to this article. The cost of such fees and charges shall not be subject to reimbursement ceiling or other penalties used by the commissioner for the purpose of establishing reimbursement rates pursuant to this article. All fees pursuant to this section shall be payable to the department of health for deposit into the special revenue funds - other, miscellaneous special revenue fund - 339, certificate of need account. S 2803. Commissioner and council; powers and duties. 1. (a) The commissioner shall have the power to inquire into the operation of hospitals and to conduct periodic inspections of facilities with respect to the fitness and adequacy of the premises, equipment, personnel, rules and by-laws, standards of medical care, hospital service, including health-related service, system of accounts, records, and the adequacy of financial resources and sources of future revenues. The commissioner or persons designated by him shall conduct at least one unannounced comprehensive inspection of each residential health care facility not later than fifteen months after the previous such inspection to determine the adequacy of care being rendered. Such comprehensive inspection shall include, but not be limited to, a survey to determine compliance by the facility with applicable statutes and regulations, and observation of a representative sample of all patients or residents and their medical records to determine the quality and adequacy of the care and treatment provided. Additional visits shall be made to facilities as needed to determine whether violations or deficiencies have been corrected, to investigate any report made pursuant to section twenty-eight hundred three-d of this article or any other complaint, and for any other purpose deemed necessary and appropriate by the commissioner. Any employee of the department who gives or causes to be given advance notice of such unannounced inspection to any unauthorized person shall, in addition to any other penalty provided by law, be suspended by the commissioner from all duties without pay for at least five days or for such greater period of time as the commissioner shall determine. Any such suspension shall be made by the commissioner in accordance with all other applicable provisions of law. (b) The purpose of such inspection shall be to determine compliance by residential health care facilities with statutes, and with regulations promulgated under the provisions of those statutes, governing minimum standards of construction, quality and adequacy of care, rights of patients, rates of payment and reimbursement. At least one such inspection every fifteen months shall include, but shall not be limited to, full on-site examination of the medical, nursing care, dietary and social services records of the facility. (c) The commissioner shall establish, in consultation with the state office for the aging, a consumer information system for residential health care facilities with respect to their compliance with the standards set forth in this section designed to provide accurate and comprehensible information to consumers on the quality of facilities which shall incorporate a summary of the findings and results of the inspections conducted pursuant to the provisions of this section. Such summary of results and findings shall include, but need not be limited to, a listing of areas in which items were found at the time of such inspections to be not in compliance with such standards and the nature of such non-compliance. Each residential health care facility shall be issued a summary of the findings of inspections of such facility conducted since the issuance of the previous summary of findings, which shall be posted conspicuously within such facility, and any other information relating to the facility available through the consumer information system. The commissioner shall promulgate rules and regulations necessary to implement the provisions of this paragraph. A facility may appeal the accuracy of a summary findings to the commissioner within twenty days after receipt of such summary. The results and findings of any prior inspections, and any penalties thereby assessed, which have not been previously appealed and overruled, shall not be subject to review. (d) (i) Notwithstanding any inconsistent provision of law, the commissioner or his designee shall determine the necessity and appropriateness of care and services provided by hospitals to patients eligible for medical assistance pursuant to title eleven of article five of the social services law and shall further determine whether a general hospital has taken an action that results in the admission of patients unnecessarily, unnecessary multiple admissions of the same patients, inappropriate discharge of patients, inappropriate transfer of patients between hospitals or between distinct units of a hospital, inappropriate diagnosis-related group coding, or other inappropriate medical or other practices with respect to hospitalized inpatients eligible for medical assistance pursuant to title eleven of article five of the social services law. In making such determinations the commissioner may utilize the services of department personnel or other authorized representatives. The hospitals shall provide such information, facilities and services as may be required by the commissioner to make such determinations. The commissioner, in implementing this paragraph, shall adopt necessary rules and regulations including but not limited to those for determining the necessity or appropriate level of admission, controlling the length of stay, the provision of surgery and other services, and the methods and procedures for making such determinations. (ii) In the event the commissioner or his designee makes a determination pursuant to this paragraph that a general hospital or physician has taken an inappropriate action resulting in a denial or adjustment of payment determined in accordance with section twenty-eight hundred seven-c of this article, the general hospital or physician which is the subject of such determination shall be entitled to a review before the commissioner or an appeal agent designated for such purposes by the commissioner at which such hospital or physician may challenge such determination. In order to be entitled to such review, such hospital or physician must provide the commissioner or his designee, as appropriate, with a written request for such review within thirty days of receipt of the written determination. During such review, the hospital or physician may present documentation or evidence in support of its challenge to the determination, and representatives of the commissioner or his designee may present documentation or evidence in support of the determination. In the event that the determination is sustained, the hospital or physician may seek judicial review of the decision pursuant to article seventy-eight of the civil practice law and rules. (iii) The commissioner shall certify to the social services officials responsible for making payments for authorized hospital services that specified items of care and services for specified individuals eligible for medical assistance pursuant to title eleven of article five of the social services law are inappropriate or unnecessary and are not authorized for payment or are authorized for payment at the appropriate level of care under the medical assistance program and, for general hospitals, for rate periods beginning on or after January first, nineteen hundred eighty-eight through March thirty-first, nineteen hundred ninety-seven, at the appropriate case based rate of payment determined pursuant to section twenty-eight hundred seven-c of this article. (e) Notwithstanding any inconsistent provision of law, the commissioner or his designee shall, not later than July first, nineteen hundred seventy-six, determine on an individual patient basis whether identifiable periods of in-patient care in a general hospital are required beyond the maximum length of stay established pursuant to section three hundred sixty-five-a of the social services law, and whether deferral of surgical procedures specified by such commissioner in accordance with paragraph (c) of subdivision five of such section may jeopardize life or essential function, or cause severe pain. In making such determinations the commissioner may utilize the services of department personnel or other authorized representatives. The hospitals shall provide such information, facilities and services as may be required by the commissioner to make such determinations. The commissioner, in implementing this paragraph, shall adopt necessary rules and regulations including but not limited to the methods and procedures for making such determinations and the utilization of any department staff or other authorized representatives located at such hospital in performing other functions relating to assuring that public funds for medical assistance are utilized exclusively to provide items of care and services in amount, duration and scope specifically authorized under the medical assistance program. The commissioner shall certify to the social services officials responsible for making payments for authorized hospital services that specified items of care and services for specified individuals are not authorized for payment under the medical assistance program. (f) Notwithstanding any inconsistent provision of law, the commissioner shall establish standards for determining the necessity of care and service for alcoholism and alcohol abuse provided by hospitals. In implementing this paragraph the commissioner, in consultation with the director of the division of alcoholism and alcohol abuse, shall adopt necessary rules and regulations including but not limited to those for determining the necessity or appropriate level of admission, controlling the length of stay, the provision of services and establishing the methods and procedures for making such determinations. (g) The commissioner shall require that every general hospital adopt and make public an identical statement of the rights and responsibilities of patients, including a patient complaint and quality of care review process, a right to an appropriate patient discharge plan and for patients other than beneficiaries of title XVIII of the federal social security act (medicare) a right to a discharge review in accordance with section twenty-eight hundred three-i of this article. The form and content of such statement shall be determined in accordance with rules and regulations adopted by the council and approved by the commissioner. A patient who requires continuing health care services in accordance with such patient`s discharge plan may not be discharged until such services are secured or determined by the hospital to be reasonably available to the patient. Each general hospital shall give a copy of the statement to each patient, or the appointed personal representative of the patient at or prior to the time of admission to the general hospital, as long as the patient or the appointed personal representative of the patient receives such notice no earlier than fourteen days before admission. Such statement shall also be conspicuously posted by the hospital and shall be a part of the patient`s admission package. Nothing herein contained shall be construed to limit any authority vested in the commissioner pursuant to this article related to the operation of hospitals and care and services provided to patients. (h) Every hospital providing treatment to alleged victims of family offenses as defined in article eight of the family court act and section 530.11 of the criminal procedure law shall be responsible for providing a copy of a notice to victims of family offenses as described in section eight hundred twelve of the family court act and subdivision six of section 530.11 of the criminal procedure law. The commissioner shall promulgate such rules and regulations as may be necessary and proper to carry out effectively the provisions of this paragraph. (h) The statement regarding patient rights and responsibilities which the commissioner shall approve as provided under paragraph (g) of this subdivision shall include a provision stating that every patient shall have the right to authorize those family members and other adults who will be given priority to visit consistent with the patient`s ability to receive visitors. (i) The statement regarding patient rights and responsibilities, required pursuant to paragraph (g) of this subdivision, shall include provisions informing the patient of his or her right to make organ, tissue or whole body donations, and the means by which the patient may make such a donation. The commissioner shall promulgate any rules and regulations necessary to implement the provisions of this paragraph. 2. (a) The council, by a majority vote of its members, shall adopt and amend rules and regulations, subject to the approval of the commissioner, to effectuate the provisions and purposes of this article, including, but not limited to: (i) the establishment of requirements for a uniform statewide system of reports and audits relating to the quality of medical and physical care provided, hospital utilization, and costs in accordance with section twenty-eight hundred three-b of this article, (ii) establishment by the department of schedules of rates, payments, reimbursements, grants and other charges for hospital and health-related services as provided in sections twenty-eight hundred seven, twenty-eight hundred seven-a, twenty-eight hundred seven-c and twenty-eight hundred eight of this article. The schedules established shall be reasonable and adequate to meet the costs which must be incurred by efficiently and economically operated facilities. In adopting regulations related to the computation of general hospital inpatient payments, the council shall take into consideration the elements of cost, geographical differentials in the elements of cost considered, economic factors in the area in which the hospital is located, costs of hospitals of comparable size, and the need for incentives to improve services and institute economies. The council shall exclude from consideration in the regulations adopted nonallowable costs such as the costs for research and those parts of the costs for educational salaries which the council determines to be not directly related to hospital service, (iii) the identification of appropriate and reasonable standards for the development of acceptable collection procedures used by general hospitals in an effort to collect unpaid bills prior to the determination that the unpaid bill is a bad debt eligible for reimbursement consideration pursuant to paragraphs (e) and (f) of subdivision eight of section twenty-eight hundred seven-a or paragraph (b) of subdivision fourteen of section twenty-eight hundred seven-c and twenty-eight hundred seven-k of this article, (iv) subject to the provisions of paragraph (e) of subdivision eleven of section twenty-eight hundred seven-a of this article or subdivision nine of section twenty-eight hundred seven-c of this article, the establishment of guidelines regarding the time to resolve appeals submitted by general hospitals. The council may consider different periods depending upon whether the basis for the appeal is related to a general hospital`s existing costs or anticipated future costs, (v) standards and procedures relating to hospital operating certificates, provided however, that the council shall establish minimum acceptable standards and procedures equal to the standards and procedures which federal law and regulation require for hospitals to qualify as providers pursuant to titles XVIII and XIX of the federal social security act. The existing state standards and procedures in effect on the date that this subdivision becomes effective shall be deemed to constitute maximum standards and procedures for purposes of limiting medical assistance reimbursement pursuant to the social services law. Such standards and procedures may thereafter be changed or added to by the council only upon the recommendation of the commissioner. For the purposes of ensuring that the health and safety of the residents of hospitals are not endangered, the council may promulgate changes in the minimum acceptable standards and procedures referred to herein upon recommendation of the commissioner, and (vi) the establishment of a system of accounts and cost findings to be used by hospitals, including a classification of such hospitals and the prescription of a system of accounts and cost finding for each class in accordance with sections twenty-eight hundred three-b and twenty-eight hundred five-a of this article. (b) The commissioner may propose rules and regulations and amendments thereto for consideration by the council. 3. The commissioner may enter into contracts with any political subdivision, voluntary non-profit agency or health systems agency and such entities are authorized to enter into contracts with the commissioner to effectuate the purposes of this article, however, contracts with voluntary non-profit agencies may not provide for payment for general hospital out-patient and emergency services or for treatment or diagnostic center services unless the commissioner is satisfied that the costs incurred for such services are approvable pursuant to the provisions of section twenty-eight hundred seven of this article. 4. At the request of the commissioner, hospitals shall furnish to the department such reports and information as it may require to effectuate the provisions of this article. 5. The commissioner may institute or cause to be instituted in a court of competent jurisdiction proceedings to compel compliance with the provisions of this article or the determinations, rules, regulations and orders of the commissioner or the council. 6. The council, by a majority vote of its members and subject to the approval of the commissioner, shall adopt rules and regulations to establish (a) a system of penalties of up to one thousand dollars per day for continuing violations of rules and regulations promulgated pursuant to article twenty-eight of this chapter and pertaining to patient care by residential health care facilities, specifying the violations and the amount of the penalty to be assessed in connection with each such violation, and (b) a system by which the rate of payment approved for a residential health care facility pursuant to section twenty-eight hundred seven of this chapter and certified to the department of social services for purposes of reimbursement in the medical assistance program, is reduced in sufficient amount to collect such penalties. Any reduction of rate to collect penalties shall be limited to five percent of the otherwise established per diem rate or that portion of the per diem rate which represents the owner`s return on equity, as defined by regulation, whichever is less. 7. The commissioner shall have the power to assess penalties in accordance with the system of penalties adopted pursuant to subdivision six of this section and pursuant to a hearing conducted in accordance with section twelve-a of this chapter. No penalty shall be assessed pursuant to subdivision six of this section unless the facility has received at least thirty days written notice of the existence of the violation, the amount of the penalty for which it may become liable and the steps which must be taken to rectify the violation. If the facility fails to rectify the violation within said thirty day period, it shall thereafter be liable for such penalty. Any such penalties shall be subject to release and compromise by the commissioner in the same manner as a penalty provided by subdivision one of section twelve of this chapter. Any penalty assessed pursuant to subdivision six of this section shall be subject to recovery in the same manner as a penalty provided by subdivision one of section twelve of this chapter or pursuant to the system for reduction of the rate of payment to the facility adopted pursuant to clause (b) of subdivision six of this section. Any such penalty assessed pursuant to subdivision six of this section shall be additional and cumulative to all other penalties or remedies existing for violations of rules and regulations promulgated pursuant to article twenty-eight of this chapter. The provisions of this subdivision shall not be applicable to nor limit any power to assess penalties pursuant to section twelve of this chapter; provided, however, that if a penalty is assessed for a violation pursuant to this subdivision, no penalty shall be assessed for such violation pursuant to section twelve of this chapter, and if a penalty is assessed for a violation pursuant to section twelve of this chapter, no penalty shall be assessed for such violation pursuant to this subdivision. 8. (a) Notwithstanding any inconsistent provision of law, the commissioner shall establish procedures to be followed by hospitals for notification to mothers and reporting under section three hundred sixty-six-g of the social services law. (b) Notwithstanding any inconsistent provision of section twelve of this chapter or any other law, the commissioner may impose a civil penalty of up to three thousand five hundred dollars for each violation of the requirements of subdivision one of section three hundred sixty-six-g of the social services law or the rules and regulations promulgated pursuant to such section, pertaining to reporting to the department, or such other entity designated by the department, of each live birth to a woman receiving medical assistance or services under the prenatal care assistance program under title two of article twenty-five of this chapter. Any such civil penalties shall be assessed subject to the applicable provisions of sections twelve and twelve-a of this chapter. 9. (a) General hospitals shall, no later than April first, two thousand, submit to the commissioner a plan for compliance with part four hundred five of the official compilation of codes, rules and regulations of the state of New York regarding the working conditions of and limits on working hours for certain members of a hospital`s medical staff and postgraduate trainees in such form and manner as specified by the commissioner. (b) The commissioner shall audit each hospital for compliance with its plan and the applicable regulation on an annual basis. Based upon an initial written audit finding of noncompliance the commissioner shall assess a civil penalty of six thousand dollars for each instance of noncompliance identified in such initial audit. (c) Within thirty days after the hospital`s receipt of written notice of noncompliance the hospital shall submit a plan of correction in such form and manner as specified by the commissioner for achieving compliance with its plan and with the applicable regulations. The commissioner shall audit each such hospital for compliance with its plan and the applicable regulations within a reasonable time after submission of such plan of correction. Upon a written finding by the commissioner within one hundred eighty days of the initial audit finding of noncompliance that the hospital has failed to substantially adhere to its plan of correction the commissioner shall assess the hospital a civil penalty of twenty-five thousand dollars. Upon a further subsequent written finding by the commissioner within one hundred eighty days of the initial audit finding of noncompliance that the hospital has failed to substantially adhere to its plan of correction the commissioner shall assess the hospital a civil penalty of fifty thousand dollars. Upon each and every subsequent written finding by the commissioner within three hundred sixty days of the initial audit finding of noncompliance that the hospital has failed to substantially adhere to its plan of correction the commissioner shall assess the hospital a civil penalty of fifty thousand dollars. (d) The penalties assessed pursuant to paragraph (c) of this subdivision shall be subject to the provisions of section twelve-a of this chapter. (e) Hospitals shall submit to the commissioner any data necessary to perform audits pursuant to this subdivision. Any hospital which fails to produce data or documentation requested in furtherance of such audit within thirty days of such request may be assessed by the commissioner a civil penalty of ten thousand dollars. S 2803-a. Authority to contract. Hospitals, including hospitals described in subdivision ten of section 1.03 of the mental hygiene law, are hereby authorized, under such rules and regulations as the council may authorize, to enter into contracts and make arrangements among themselves and among other municipal, state, federal or privately owned hospitals, or any medical schools, or other health related facilities having or utilizing hospital services or facilities or voluntary ambulance services registered or certified pursuant to article thirty of the public health law or nutrition programs that receive federal, state or local government funding, whether or not located in this state or elsewhere, for the 1. mutual use, or exchange of medical resources including, but not limited to, real or personal property or employment of personnel; 2. joint purchases of goods, supplies and services; or 3. development of medical information, techniques and facilities useful in the progress of the medical art; reduction of medical costs and promotion of a more efficient and effective approach to the delivery of health care services. Any contract between any such hospitals and such voluntary ambulance services shall be limited to joint purchases of goods and supplies necessary for the support of such ambulance services or otherwise used by such hospitals. S 2803-b. Uniform reports and accounting systems for hospital costs. 1. The council, after public hearings with respect to its proposed systems of uniform hospital accounting and reporting, shall, by majority vote of its members and subject to approval of the commissioner, adopt and amend approved systems of uniform hospital accounting and reporting which are designed to enable hospitals to fairly, accurately and efficiently prepare the financial reports required by subdivision three of this section. Existing systems of accounting and reporting used by hospitals shall be examined and taken into consideration by the council in carrying out its function pursuant to this section. The council shall take such steps as are necessary to adopt the approved system of uniform hospital accounting and reporting by January first, nineteen hundred seventy-five. 2. The council, where appropriate to reflect differences in hospital size and services or in the method of providing or paying for hospital and related services, may allow for modifications in the accounting systems approved pursuant to subdivision one of this section. 3. Every organization which operates, conducts or maintains a hospital, and the officers thereof, shall furnish to the department with respect to each licensed hospital operated, conducted or maintained by the organization, within one hundred twenty days after the close of each fiscal year commencing after the adoption of systems of uniform hospital accounting and reporting approved under subdivision one of this section, all of the following reports on forms specified by the council: (a) A balance sheet detailing the assets, liabilities and net worth of the hospital at the end of its fiscal year; (b) A statement of income, expenses, and operating surplus or deficit for the annual period ending on the balance sheet date; (c) A statement detailing the source of application of all funds expended by the hospital for the period encompassed by the income statement required by paragraph (b) of this subdivision; (d) A report of hospital expenditures which allocates the costs of nonrevenue-producing departments of a hospital to the other nonrevenue-and revenue-producing centers which they serve. This report shall be accompanied by a sufficiently detailed statistical report containing data describing the hospital`s basic services and patient statistics which identifies costs related to categories of hospital services delivered to patients by each department of the hospital, in accordance with a list of such services required by the council pursuant to subdivision one of this section. 4. The commissioner shall adopt forms of authentication for use by hospital officers or licensed accountants preparing reports under this section stating that each such officer or accountant making the authentication believes that to the extent of his knowledge and information each statement in the report is true. 5. The council shall report annually to the legislature and the executive department no later than the fifteenth day of January, developments under this section and methods currently in use to implement the provisions of section twenty-eight hundred seven of this article. S 2803-c. Rights of patients in certain medical facilities. 1. The principles enunciated in subdivision three hereof are declared to be the public policy of the state and a copy of such statement of rights and responsibilities shall be posted conspicuously in a public place in each facility covered hereunder. 2. The commissioner shall require that every nursing home and facility providing health related service, as defined in subdivision two and paragraph (b) of subdivision four of section twenty-eight hundred one of this article, shall adopt and make public a statement of the rights and responsibilities of the patients who are receiving care in such facilities, and shall treat such patients in accordance with the provisions of such statement. 3. Said statement of rights and responsibilities shall include, but not be limited to the following: a. Every patient`s civil and religious liberties, including the right to independent personal decisions and knowledge of available choices, shall not be infringed and the facility shall encourage and assist in the fullest possible exercise of these rights. b. Every patient shall have the right to have private communications and consultations with his or her physician, attorney, and any other person. c. Every patient shall have the right to present grievances on behalf of himself or herself or others, to the facility`s staff or administrator, to governmental officials, or to any other person without fear of reprisal, and to join with other patients or individuals within or outside of the facility to work for improvements in patient care. d. Every patient shall have the right to manage his or her own financial affairs, or to have at least a quarterly accounting of any personal financial transactions undertaken in his or her behalf by the facility during any period of time the patient has delegated such responsibilities to the facility. e. Every patient shall have the right to receive adequate and appropriate medical care, to be fully informed of his or her medical condition and proposed treatment unless medically contraindicated, and to refuse medication and treatment after being fully informed of and understanding the consequences of such actions. f. Every patient shall have the right to have privacy in treatment and in caring for personal needs, confidentiality in the treatment of personal and medical records, and security in storing personal possessions. g. Every patient shall have the right to receive courteous, fair, and respectful care and treatment and a written statement of the services provided by the facility, including those required to be offered on an as-needed basis. h. Every patient shall be free from mental and physical abuse and from physical and chemical restraints, except those restraints authorized in writing by a physician for a specified and limited period of time or as are necessitated by an emergency in which case the restraint may only be applied by a qualified licensed nurse who shall set forth in writing the circumstances requiring the use of restraint and in the case of use of a chemical restraint a physician shall be consulted within twenty-four hours. i. A statement of the facility`s regulations and an explanation of the patient`s responsibility to obey all reasonable regulations of the facility and to respect the personal rights and private property of the other patients. j. A statement that should the patient be adjudicated incompetent and not be restored to legal capacity, or if a conservator should be appointed for the patient, the above rights and responsibilities shall be exercised by the appointed committee or conservator in a representative capacity. k. Every patient shall have the right to receive upon request kosher food or food products prepared in accordance with the Hebrew orthodox religious requirements. l. Pursuant to regulations promulgated by the commissioner, no facility or individual and no general hospital providing medical care to persons having been admitted from such facilities or from adult care facilities covered by the provisions of section four hundred sixty-one-b of the social services law, or to applicants for readmission to such facilities or to adult care facilities covered by the provisions of section four hundred sixty-one-b of the social services law, shall restrict or prohibit the access to the facility or general hospital nor interfere with the performance of the official duties, including confidential visits with residents, of duly designated persons participating in the long term care ombudsman program as provided for in sections five hundred forty-four and five hundred forty-five of the executive law. m. Pursuant to regulations promulgated by the commissioner in consultation with the director of the office for the aging, no facility shall restrict or prohibit access by records access ombudsmen specially designated under section five hundred forty-four of the executive law to the medical or personal records of any patient or resident if such patient or resident, or, where appropriate, committee for an incompetent, has given express written consent to such disclosure; provided, however, that (i) in the case of medical records, disclosure may be exclusive of the personal notes of the physician as defined in such regulations and (ii) access may be limited to such times as may be specified in such regulations. Such records shall be made available by a member or members of the facility`s staff who shall be designated by the facility to provide access to and, where necessary, interpretation of such records to such records access ombudsman, who shall have the right to photocopy such records. The facility may charge a reasonable fee for photocopying pursuant to such regulations. Disclosure to a records access ombudsman of records of any patient or resident pursuant to the written consent of such patient or resident shall not give rise to any claim against the facility, its staff, or the patient`s or resident`s physician based solely on the fact of such disclosure pursuant to such written consent. Nothing in this paragraph shall be construed to limit or abridge any right of access to records, including financial records, otherwise available to ombudsmen, patients or residents, or any other person. n. Pursuant to regulations promulgated by the commissioner in consultation with the director of the office for the aging, no facility or individual shall retaliate or take reprisals against any resident, employee, or other person for having filed a complaint with, or having provided information to, any long term care patient ombudsman functioning in accordance with section five hundred forty-four or five hundred forty-five of the executive law, nor shall any facility or individual interfere with the official duties of any such ombudsman. Such regulations shall provide for appropriate sanctions with respect to such retaliation, reprisals, or interference. (o) Every patient shall have the right to authorize those family members and other adults who will be given priority to visit consistent with the patient`s or resident`s ability to receive visitors. p. A statement informing the patient of his or her right to make organ, tissue or whole body donations, and the means by which the patient may make such a donation. The commissioner shall promulgate any rules and regulations necessary to implement the provisions of this paragraph. 4. Each facility shall give a copy of the statement to each patient at or prior to the time of admission to the facility, or to the appointed personal representative at the time of appointment and to each member of the facility`s staff. 5. Each facility shall prepare a written plan and provide appropriate staff training to implement each patient`s right included in the statement. S 2803-d. Reporting abuses of persons receiving care or services in residential health care facilities. 1. The following persons are required to report in accordance with this section when they have reasonable cause to believe that a person receiving care or services in a residential health care facility has been physically abused, mistreated or neglected by other than a person receiving care or services in the facility: any operator or employee of such facility, any person who, or employee of any corporation, partnership, organization or other entity which, is under contract to provide patient care services in such facility, and any nursing home administrator, physician, medical examiner, coroner, physician`s associate, specialist`s assistant, osteopath, chiropractor, physical therapist, occupational therapist, registered professional nurse, licensed practical nurse, dentist, podiatrist, optometrist, pharmacist, psychologist, certified social worker, speech pathologist and audiologist. 2. In addition to those persons required to report suspected physical abuse, mistreatment or neglect of persons receiving care or services in residential health care facilities, any other person may make such a report if he or she has reasonable cause to believe that a person receiving care or services has been physically abused, mistreated or neglected in the facility. 3. Reports of suspected physical abuse, mistreatment or neglect made pursuant to this section shall be made immediately by telephone and in writing within forty-eight hours to the department. Written reports shall be made on forms supplied by the commissioner and shall include the following information: the identity of the person making the report and where he can be found; the name and address of the residential health care facility; the names of the operator and administrator of the facility, if known; the name of the subject of the alleged physical abuse, mistreatment or neglect, if known; the nature and extent of the physical abuse, mistreatment or neglect; the date, time and specific location of the occurrence; the names of next of kin or sponsors of the subject of the alleged physical abuse, mistreatment or neglect, if known; and any other information which the person making the report believes would be helpful to further the purposes of this section. Such written reports shall be admissible in evidence, consistent with the provisions of paragraph (f) of subdivision six of this section, in any actions or proceedings relating to physical abuse, mistreatment or neglect of persons receiving care or services in residential health care facilities. Written reports made other than on forms supplied by the commissioner which contain the information required herein shall be treated as if made on such forms. 4. Any person who in good faith makes a report pursuant to this section shall have immunity from any liability, civil or criminal, for having made such a report. For the purpose of any proceeding, civil or criminal, the good faith of any person required to report instances of physical abuse, mistreatment or neglect of persons receiving care or services in residential health care facilities shall be presumed. 5. Notwithstanding the provisions of section two hundred thirty of this chapter, any licensed person who commits an act of physical abuse, mistreatment or neglect of a person receiving care or services in a residential health care facility and any licensed person required by this section to report an instance of suspected physical abuse, mistreatment or neglect of a person receiving care or services in a residential health care facility who fails to do so shall be guilty of unprofessional conduct in the practice of his or her profession. 6. (a) Upon receipt of a report made pursuant to this section, the commissioner shall cause an investigation to be made of the allegations contained in the report. Notification of the receipt of a report shall be made immediately by the department to the appropriate district attorney if a prior request in writing has been made to the department by the district attorney. Prior to the completion of the investigation by the department, every reasonable effort shall be made to notify, personally or by certified mail, any person under investigation for having committed an act of physical abuse, mistreatment or neglect. The commissioner shall make a written determination, based on the findings of the investigation, of whether or not sufficient credible evidence exists to sustain the allegations contained in the report or would support a conclusion that a person not named in such report has committed an act of physical abuse, neglect or mistreatment. A copy of such written determination, together with a notice of the right to a hearing as provided in this subdivision, shall be sent by registered or certified mail to each person who the commissioner has determined has committed an act of physical abuse, neglect or mistreatment. A letter shall be sent to any other person alleged in such report to have committed such an act stating that a determination has been made that there is not sufficient evidence to sustain the allegations relating to such person. A copy of each such determination and letter shall be sent to the facility in which the alleged incident occurred. (b) The commissioner may make a written determination, based on the findings of the investigation, that sufficient credible evidence exists to support a conclusion that a person required by this section to report suspected physical abuse, mistreatment or neglect had reasonable cause to believe that such an incident occurred and failed to report such incident. A copy of such written determination, together with a notice of the right to a hearing as provided in this subdivision, shall be sent by registered or certified mail to each person who the commissioner has determined has failed to report as required by this section. (c) All information relating to any allegation which the commissioner has determined would not be sustained shall be expunged one hundred twenty days following notification of such determination to the person who made the report pursuant to this section, unless a proceeding pertaining to such allegation is pending pursuant to article seventy-eight of the civil practice law and rules. Whenever information is expunged, the commissioner shall notify any official notified pursuant to paragraph (a) of this subdivision that the information has been expunged. (d) At any time within thirty days of the receipt of a copy of a determination made pursuant to this section, a person named in such determination as having committed an act of physical abuse, neglect or mistreatment, or as having failed to report such an incident, may request in writing that the commissioner amend or expunge the record of such report, to the extent such report applies to such person, or such written determination. If the commissioner does not comply with such request within thirty days, such person shall have the right to a fair hearing to determine whether the record of the report or the written determination should be amended or expunged on the grounds that the record is inaccurate or the determination is not supported by the evidence. The burden of proof in such hearing shall be on the department. Whenever information is expunged, the commissioner shall notify any official notified pursuant to paragraph (a) of this subdivision that the information has been expunged. (e) Except as hereinafter provided, any report, record of the investigation of such report and all other information related to such report shall be confidential and shall be exempt from disclosure under article six of the public officers law. (f) Information relating to a report made pursuant to this section shall be disclosed under any of the following conditions: (i) pursuant to article six of the public officers law after expungement or amendment, if any, is made in accordance with a hearing conducted pursuant to this section, or at least forty-five days after a written determination is made by the commissioner concerning such report, whichever is later; provided, however, that the identity of the person who made the report, the victim, or any other person named, except a person who the commissioner has determined committed an act of physical abuse, neglect or mistreatment, shall not be disclosed unless such person authorizes such disclosure; (ii) as may be required by the penal law or any lawful order or warrant issued pursuant to the criminal procedure law; or (iii) to a person who has requested a hearing pursuant to this section, information relating to the determination upon which the hearing is to be conducted; provided, however, that the identity of the person who made the report or any other person who provided information in an investigation of the report shall not be disclosed unless such person authorizes such disclosure. (g) Where appropriate, the commissioner shall report instances of physical abuse, mistreatment or neglect or the failure to report as required by this section, to the appropriate committee on professional conduct for the professions enumerated in subdivision one of this section when a determination has been made after the commissioner has provided an opportunity to be heard. The commissioner shall report instances of physical abuse, mistreatment, neglect or misappropriation of resident property by a nurse aide or other unlicensed individual and any brief statement by the nurse aide or other unlicensed individual disputing the finding to the nursing home nurse aide registry established pursuant to section twenty-eight hundred three-j of this article when a determination has been made after the commissioner has provided an opportunity to be heard. 7. In addition to any other penalties prescribed by law, any person who commits an act of physical abuse, neglect or mistreatment, or who fails to report such an act as provided in this section, shall be deemed to have violated this section and shall be liable for a penalty pursuant to section twelve of this chapter after an opportunity to be heard pursuant to this section. 8. No residential health care facility or officer or employee thereof shall discharge or in any manner discriminate or retaliate against any person in any residential health care facility, or any relative, or sponsor thereof, or against any employee of the facility, or against any other person because such person, relative, legal representative, sponsor or employee has made, or is about to make, a report pursuant to this section, or has testified, or is about to testify, in any proceeding relating to physical abuse, mistreatment or neglect of a person receiving care or services in a residential health care facility. The supreme court may grant injunctive relief to any person subject to such retaliation or discrimination. Any violation of this subdivision shall be punishable pursuant to section twelve of this chapter. 9. No later than March fifteenth of every year the commissioner shall prepare and transmit to the governor and the legislature a report on the incidents of physical abuse, mistreatment and neglect of persons receiving care or services in residential health care facilities. No information concerning any individual or facility shall be disclosed in a report made pursuant to this subdivision, or in any other report, except information which would be available pursuant to article six of the public officers law as provided in this section. Nothing in this section shall be construed to prohibit the maintenance or disclosure of, or require the expungement of, statistical data which would not reveal the identity of any person or facility. 10. An investigation shall be made of each incident reported pursuant to this section, but only the provisions of paragraphs (e) and (f) of subdivision six, and subdivisions two, four, eight and nine shall apply to physical abuse by persons receiving care or services in residential health care facilities. 11. The commissioner shall adopt rules and regulations necessary to implement this section. * S 2803-e. Residential health care facilities; return and redistribution of unused medication. 1. Notwithstanding any inconsistent provision of law, rule or regulation to the contrary, the commissioner is hereby authorized and directed to permit either a resident or consultant pharmacist in a residential health care facility to return to the pharmacy from which it was purchased any unused medication provided that such medication is sealed in unopened, individually packaged units and within the recommended period of shelf life, and provided that such medication is not a controlled substance as defined in section thirty-three hundred six of the public health law. 2. The pharmacy to which such medication as described in subdivision one of this section is returned shall be permitted to receive, restock and redistribute that medication. 3. The pharmacy to which such medication as described in subdivision one of this section is returned shall be required to reimburse or credit the purchaser of that medication for the unused medication that is restocked and redistributed. No pharmacy shall be required to accept any medication returned under subdivision one of this section. 4. Neither an individual patient or the state, if a patient is a recipient of a state funded program, shall be charged for unused medication which according to the provisions of this law is returned for reimbursement or credit. * NB There are 2 S 2803-e`s * S 2803-e.* Reporting incidents of possible professional misconduct. 1. (a) Hospitals and other facilities approved pursuant to this article shall make a report or cause a report to be made within thirty days of the occurrence of any of the following: the suspension, restriction, termination or curtailment of the training, employment, association or professional privileges or the denial of the certification of completion of training of an individual licensed pursuant to the provisions of title eight of the education law or of a medical resident with such facility for reasons related in any way to alleged mental or physical impairment, incompetence, malpractice or misconduct or impairment of patient safety or welfare; the voluntary or involuntary resignation or withdrawal of association or of privileges with such facility to avoid the imposition of disciplinary measures; or the receipt of information which indicates that any professional licensee or medical resident has been convicted of a crime; the denial of staff privileges to a physician if the reasons stated for such denial are related to alleged mental or physical impairment, incompetence, malpractice, misconduct or impairment of patient safety or welfare. (b) Hospitals and other facilities approved pursuant to this article shall make a report or cause a report to be made within thirty days of obtaining knowledge of any information which reasonably appears to show that a physician is guilty of professional misconduct as defined in section sixty-five hundred thirty or sixty-five hundred thirty-one of the education law. A violation of this paragraph shall not be subject to the provisions of section twelve-b of this chapter. 2. Reports of possible professional misconduct made pursuant to this section shall be made in writing to the education department with respect to all individuals licensed pursuant to title eight of the education law except that such reports shall be made to the department of health in the case of physicians, physician`s assistants and specialist`s assistants. Written reports shall include the following information: (a) name, address, profession and license number of the individual; (b) a description of the action taken by the hospital including the reason for the action and the date thereof, or the nature of the action or conduct which led to the resignation or withdrawal, and the date thereof, stated with sufficient specificity to allow a reasonable person to understand which of the reasons enumerated in subdivision one of this section led to the action of the hospital or the resignation or withdrawal of the individual, and, if the reason was an act or omission of the individual, the particular act or omission; (c) any criminal conviction of which the hospital has knowledge; and (d) such other information as the education department or the department of health shall require. 3. (a) Any report or information furnished to the education department or department of health in accordance with the provisions of this section shall be deemed a confidential communication and shall not be subject to inspection or disclosure in any manner except upon formal written request by a duly authorized public agency or pursuant to a judicial subpoena issued in a pending action or proceeding. (b) Any person, facility or corporation which makes a report pursuant to this section in good faith and without malice shall have immunity from any liability, civil or criminal, for having made such a report. For the purpose of any proceeding, civil or criminal, the good faith of any person required to make a report shall be presumed. * NB There are 2 S 2803-e`s S 2803-f. Respite projects. Residential health care facilities shall be permitted, with the prior approval of the commissioner in consultation with the director of the state office for the aging, to participate in respite projects pursuant to section five hundred thirty-six-f of the executive law. No person shall receive services providing respite in a residential health care facility unless such person is medically eligible for admission to such facility. Reimbursement for services in a residential health care facility shall be as provided in sections twenty-eight hundred seven and twenty-eight hundred eight of this article for skilled nursing facility services or health-related services. The commissioner, in consultation with the director of the state office for the aging, shall promulgate rules and regulations to implement the provisions of this section. S 2803-g. Board of visitors in county owned residential health care facility. 1. Each public residential health care facility owned by a county may have a board of visitors consisting of at least seven members. Members shall be appointed by the county executive of the county in which the facility is located where the county charter or, in the absence of such, county law provides that members of county boards, commissions, authorities or agencies are to be appointed by such an officer. Such appointments shall be made with the approval of the local legislative body of that county. In those counties without a county executive, appointments shall be made by the legislative body of the county. A visitor may be removed by the county legislative body for cause after notice and an opportunity for hearing on the charges. 2. Unless provided otherwise by local law, each board shall elect annually one member to serve as president of the board and one member to serve as secretary. 3. Visitors shall not receive compensation but may be reimbursed for their actual expenses in connection with their service as visitors by the facility they serve. 4. The board of visitors shall hold no less than six regular meetings annually, but a greater number of regular meetings may be scheduled by the board. The conditions under which special meetings may be called shall be established by local law or in by-laws of the board. The board may require the head administrator of the facility to submit a report at each meeting. The board shall keep a record of its proceedings and activities. A member of a board of visitors who has failed to attend three consecutive meetings shall be considered to have vacated his office unless the board has adopted rules to the contrary. 5. Upon the request of the head administrator of the facility or upon the board`s initiative, the board shall consult, advise and work with the director with respect to community relations, conditions at the facility, preliminary plans for construction and alterations and programs and activities of the facility. 6. The board or any member of the board may visit and inspect the facility at any time without prior notice and may report on conditions to the local legislative body or the county executive and the commissioner of the New York state department of health. In addition, the board shall insure that a member or a committee of members shall inspect the facility once every three months without prior notice. A member of a board of visitors who has failed to visit and inspect the facility at least twice a year shall be considered to have vacated his office unless otherwise ordered by the board. 7. The board shall have the power to investigate all charges against the administrator of the facility, all cases of alleged patient abuse or mistreatment, and any other complaint filed against the facility. The board shall receive from the facility copies of all accident reports and any reports of abuse or neglect involving patients of the facility. The board or any member of the board shall have the right to examine any books or papers of the facility at anytime, except that access to patient medical records shall be with the written consent of the patient or his legal representative. Unless provided otherwise by local law, the board shall have the power, in accordance with the civil practice law and rules, to require the production of any books or papers deemed relevant to the investigation. The board or a member may include in the report of their investigation or separately at any time, any matter pertaining to the management and affairs of the facility and may make recommendations to the county executive, or in the absence of such, the county legislative body and to the commissioner. 8. Once each year, the board shall make an independent assessment of conditions at the facility and shall submit a report on the assessment and recommendations to the commissioner and to the county executive, or in the absence of such, the county legislative body. 9. The county executive or the local legislative body shall notify the board of visitors of a residential health care facility of the proposed appointment of a head administrator to such facility with a request that the board report an expression of its opinion of the appointment and, if it objects thereto, the reasons for such an objection. 10. The board may establish by-laws which shall be available for public inspection at the facility and the office of the county attorney. 11. Members of the board of visitors shall be considered officers of the county by which they are compensated for purposes of section four hundred nine of the county law. The county legislative body shall establish a code of ethics for the members of such board, including but not limited to provisions on conflict of interest and course of conduct. S 2803-h. Health related facility; pet therapy programs. Notwithstanding any inconsistent provision of law, rule or regulation to the contrary, and subject to the approval of the commissioner, every residential health care facility, as defined in section twenty-eight hundred one of this article, may, at the discretion of such facility, board animals in such facility where such boarding would, in the determination of the commissioner and such facility, tend to promote the general well-being of the residents of such facility. The commissioner shall adopt rules and regulations necessary to implement the provisions of this section. S 2803-i. General hospital inpatient discharge review program. 1. A general hospital inpatient discharge review program applicable to all patients other than beneficiaries of title XVIII of the federal social security act (medicare) shall be established in accordance with this section. No general hospital inpatient subject to the provisions of this section may be discharged on the basis that inpatient hospital service in a general hospital is no longer medically necessary and that an appropriate discharge plan has been established unless a written notice of such determinations and a copy of the discharge plan have been provided to the patient or the appointed personal representative of the patient. The patient or the appointed personal representative of the patient shall have the opportunity to sign the notice and a copy of the discharge plan and receive a copy of both signed documents. Every general hospital shall use a common notice developed and disseminated in accordance with rules and regulations adopted by the council and approved by the commissioner which shall indicate that the patient is to be discharged, shall state the reasons therefor and shall state that the patient may request a review of such determinations. The patient, or the appointed personal representative of the patient may request a review of such determinations by the appropriate independent professional review agent (or "review agent") in accordance with subdivision four of this section. Notwithstanding that the patient discharge review process provided in accordance with federal law and regulation shall apply to beneficiaries of title XVIII of the federal social security act (medicare), a written copy of the discharge plan, and discharge notice shall be provided to the beneficiary or the appointed personal representative of the beneficiary. The beneficiary or the appointed personal representative of the beneficiary shall have the opportunity to sign the documents and receive a copy of the signed documents. 2. (a) For patients eligible for payments by state governmental agencies for general hospital inpatient services as the patient`s primary payor, an independent professional review agent shall mean the commissioner or his designee. In conducting general hospital inpatient discharge reviews in accordance with this section, the commissioner may utilize the services of department personnel or other authorized representatives, including a review agent approved in accordance with paragraph (b) of this subdivision. (b) For patients who are not beneficiaries of title XVIII of the federal social security act (medicare) nor eligible for payments by state governmental agencies as the patient`s primary payor, an independent professional review agent shall mean a third party payor of hospital services or other corporation approved by the commissioner in writing for purposes of conducting general hospital inpatient discharge reviews in accordance with this section. For a third party payor of hospital services or other corporation to be approved as an independent professional review agent in accordance with this paragraph, such third party payor or other corporation must meet the following criteria: (i) the review agent shall employ or otherwise secure the services of adequate medical personnel qualified to determine the necessity of continued inpatient hospital services and the appropriateness of hospital discharge plans; (ii) the review agent shall demonstrate the ability to render review decisions in a timely manner as provided in this section; (iii) the review agent shall agree to provide ready access by the commissioner to all data, records and information it collects and maintains concerning its review activities under this section; (iv) the review agent shall agree to provide to the commissioner such data, information and reports as the commissioner determines necessary to evaluate the review process provided pursuant to this section; (v) the review agent shall provide assurances that review personnel shall not have a conflict of interest in conducting a discharge review for a patient based on hospital or professional affiliation; and (vi) the review agent meets such other performance and efficiency criteria regarding the conduct of reviews pursuant to this section established by the commissioner. The commissioner may withdraw approval of an independent professional review agent where such review agent fails to continue to meet approval criteria established pursuant to this paragraph. (c) (i) Each general hospital shall enter into contracts with one or more independent professional review agents approved by the commissioner in accordance with paragraph (b) of this subdivision for purposes of conducting general hospital inpatient discharge reviews in accordance with this section for patients, including uncompensated care patients, who are not beneficiaries of title XVIII of the federal social security act (medicare) nor eligible for payments by state governmental agencies as the patients` primary payor; provided, however, a payor of hospital service included in the payor categories specified in paragraph (a) of subdivision one of section twenty-eight hundred seven-c of this article, other than state governmental agencies, may designate the review agent for their subscribers or beneficiaries or enrolled members and shall reimburse such designated review agent for costs of the discharge review program. (ii) Notwithstanding any inconsistent provision of law, general hospital contract costs incurred in accordance with subparagraph (i) of this paragraph may be included as an additional charge for general hospital inpatient services in determining patient charges for payors included in the payor categories specified in paragraph (c) of subdivision one of section twenty-eight hundred seven-c of this article, or as a charge in addition to rates of payment for general hospital inpatient services in determining payment due for payors included in the payor categories specified in paragraph (b) of subdivision one of section twenty-eight hundred seven-c of this article, or paragraph (a) of such subdivision one if a payor has not designated a review agent for such payor`s subscribers or beneficiaries or enrolled members, or paragraph (a) or (b) of subdivision two of section twenty-eight hundred seven-c of this article. Such additional charges shall not be subject to maximum charge or rate of payment ceilings determined in accordance with section twenty-eight hundred seven-c of this article for such payors. 3. (a) If a general hospital and the attending physician agree that inpatient hospital service in a general hospital is no longer medically necessary for a patient, other than a beneficiary of title XVIII of the federal social security act (medicare), and an appropriate discharge plan has been established for such patient, at that time the hospital shall provide the patient or the appointed personal representative of the patient with a written discharge notice and a copy of the discharge plan, meeting the requirements of subdivision one of this section. (b) If a general hospital has determined that inpatient hospital service in a general hospital is no longer medically necessary for a patient, other than a beneficiary of title XVIII of the federal social security act (medicare)