Assembly approves ban on new for‑profit hospice facilities; existing providers grandfathered

The Assembly passed Assembly Bill 565 on Wednesday to prohibit the establishment, incorporation, construction or increase in bed capacity of for‑profit hospice facilities in New York state.

Miss Pollan, the bill’s sponsor and chair of the health committee, told colleagues the legislation seeks to prevent a proliferation of for‑profit hospice providers and said surveys and analyses indicate for‑profit hospices provide fewer visits and rely more on lower‑skilled staff. “We know that for‑profit across the country have been problematic,” she said on the floor, adding that the bill would grandfather the two for‑profit hospices already operating in the state and would not prevent those providers from expanding non‑bed services such as home‑based hospice or hospital partnerships.

Opponents questioned whether the bill would reduce access in areas with limited hospice care and asked why the Assembly would act before the state’s forthcoming master plan on aging. Mister Jensen and others asked whether existing Department of Health certificate‑of‑need and licensing requirements already provide sufficient oversight; Pollan replied that regulating entry is preferable to relying on oversight after problems arise.

Supporters said the measure preserves quality and nonprofit mission in an area of care where New York has lower usage than many other states; critics said the state should instead focus on boosting funding and referrals for hospice services and allow the Department of Health’s licensing and certificate‑of‑need process to vet new entrants.

The roll call recorded 106 ayes and 43 noes; the bill passed and will go to the governor. Sponsors acknowledged the measure does not itself expand capacity or fund services, but argued it is intended to shape the future market for hospice care in New York.