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NYS Department of Health Releases New Application Requirements for Licensed Home Care Services Agencies

8/31/2022

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​Stay Tuned! The HCAOA New York Chapter will hold a virtual meeting in late September to review the new LHCSA application and process, as well as the October 1 institution of the new minimum wage for home care providers. Details will be shared soon.
 
On August 17, 2022, the New York State Department of Health (DOH) released a long-awaited Dear Administrator Letter (DAL) setting forth application changes for licensed home care services agencies (LHCSAs) in New York, a new application required for LHCSA licensure, and a Frequently Asked Questions (FAQ) document regarding application requirements. 
Overview of New LHCSA Licensure Application and Process
 
Applications for LHCSA licensure now require an updated application process, which includes both new public need and financial feasibility standards, in addition to the character and competence review that existed as part of the previous LHCSA licensure process.
 
This licensure application process applies to organizations seeking to establish a new LHCSA (See NY PHL Section 3605), obtain required approval for a change of ownership or control, or expand a restricted license. Below is a brief overview of the new process. (For more details, see NY PHL Section 3611-a. In addition, application requirements for Article 36 transfers of ownership can be found in the DOH “Transfers of Ownership” matrix.)
 
New Application Process Highlights

  • Applications for LHCSA licensure should be submitted electronically through the New York State Electronic Certificate of Need (NYSE-CON) system and continue to require an application fee of $2,000.
  • A new public need methodology will apply to all applications for licensure submitted on or after April 1, 2020.
  • However, applications for licensure based on a change of ownership for LHCSAs “actively serving” at least 25 patients will not be subject to public need review. (“Actively serving” means an agency has a plan of care in place for the patient and is providing services to the patient in their home.)
  • The standards for financial feasibility have been updated to better align with the financial review of other health care providers undergoing certificate of need review in New York, though there are important variations that are unique to the new LHCSA review process, including input from a certified public accountant (CPA).
 
Important Next Steps and Considerations for Agencies

  • Organizations that submitted LHCSA applications for licensure that were not acknowledged by the NY DOH during the 2018–2020 moratorium period are now required to submit a new application using the new application in order to obtain licensure. However, if an application was accepted and acknowledged by DOH during this time frame (e.g., as a result of an exception to the moratorium for a special program, serious concern or consolidation),6 DOH has indicated that it will review the pending application and reach out for additional information, as needed.
  • Corporate transactions accomplished during the LHCSA moratorium using an affidavit of no control require submission of a new LHCSA application within 30 days.
  • Existing LHCSAs seeking to add a new service, expand into new counties, add additional sites or close are not subject to the new licensure process.
  • Transfers of ownership interest to existing partners or members of limited liability companies (LLCs) already approved by PHHPC, transfers of less than 10 percent interest to new partners or new members of LLCs, and transfers of stock or voting rights in business corporations to persons already approved by PHHPC for the agency may still proceed upon a filing of the required notice with DOH, at least either 90 or 120 days prior to the intended effective date of the transaction, depending on the type of corporation.
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  • Membership Resources
    • Member Login
    • Code of Conduct
    • Resources
    • Newsletters
    • Product & Services Guide
    • Join HCAOA
    • Benefits: Agency Membership
    • Benefits: Associate Membership
  • State Chapters
    • Alabama
    • Arizona
    • California
    • Connecticut
    • Florida
    • Georgia
    • Illinois
    • Massachusetts
    • Michigan
    • New Jersey
    • New York
    • Ohio
    • South Carolina
    • Virginia
    • Washington
    • West Virginia
    • Wisconsin
  • Education/Events
    • Calendar
    • National Home Care Conference >
      • 2023 Call for Speakers
  • Advocacy/Policy
    • Bring the Vote Home
    • Advocacy Fund
    • State of Home Care: Industry at Crossroads
    • Home Care Workforce Action Alliance
    • Caring for Seniors: Value of Home Care
    • Home Care by the Numbers
    • Issues & Positions
    • Legislative Action Network
    • State Legislation Tracker
    • Federal Legislation Tracker
  • About HCAOA
    • Mission & Vision
    • Board of Directors
    • Staff
    • Caregiver of the Year Award
    • News Releases
    • Advertising & Marketing
    • The Voice
    • Contact Us
  • Find a Job