ALBANY, N.Y. (WROC) — More than 250 nursing homes across New York State are protesting a new law on how they can spend their money.
These nursing homes are now turning to a federal court seeking to throw out a Cuomo-era spending law taking effect in the new year.
A federal lawsuit filed Wednesday aims to overturn a new state law that would require the facilities to spend at least 70 percent of their revenue on direct resident care, and at least 40 percent on staff who deal with residents, with the companies running the homes not being allowed more than 5 percent profits.
Stephen Hanse, CEO of the New York State Health Facilities Association, claims the nursing homes he represents are already struggling to recover from COVID losses and a major staffing shortage. They can`t afford to change how they spend their money.
“It ignores those issues, it ignores the unique nature of every nursing home in the state of New York, and just seeks to take money.” said Hanse
The civil rights complaint claims the law violates constitutional amendments against undue seizure, excessive fines, and due process – and claims the state has not provided any guidance, despite the impending start date.