New York Gov. Kathy Hochul signed an executive order Dec. 31 delaying a new law requiring nursing homes to spend at least 70 percent of revenue on direct resident care, and at least 40 percent on staff who care for residents for 30 days.
The new law also caps nursing home profits at 5 percent and requires owners to redirect any additional funds to the state's nursing home "quality pool," which rewards nursing homes providing high quality care.
More than 250 New York nursing homes and trade groups filed a federal lawsuit seeking to block the new laws Dec. 30, alleging that it violated the Constitution and contradicted the Supremacy Clause.
While nursing homes are encouraged to comply with the laws, facilities will not be penalized if they don’t comply throughout the duration of the order, expiring Jan. 30.