NYDA Lawsuit Successful

In a State of New York Supreme Court stipulation of dismissal without prejudice agreement reached between NYDA providers and NYS, the State has agreed to not retroactively implement their proposed IRA and day hab rate reductions which were scheduled to take place in 2020 (and moved to 2021). These reductions included the elimination of the IRA occupancy factor, the reduction in the number of IRA therapy days, and the reduction of retainer and therapy day hab payments.

The State has also agreed to file an amended Appendix K if needed to propose a delay to those provisions until six months after the end of the federal public health emergency declared by the DHHS.

Should CMS not approve the Appendix K amendment, the State has also agreed to not retroactively recoup any funds from providers as it relates to these proposed reductions for the period of time in which the rate cuts were not implemented.

This is at least a temporary win for the providers but they could face these reductions in the future as indicated above.

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