Assembly bars new for‑profit hospice facilities, grandfathering existing providers

The Assembly voted to prohibit the establishment, incorporation, construction or capacity increases for new for‑profit hospice providers in New York State. The bill passed the floor with a recorded vote of 106 ayes and 43 nays.

Sponsor Miss Pollan said the bill is designed to prevent a proliferation of for‑profit hospice operators, which she and supporters said have provided lower levels of nursing visits and fewer skilled staff in some studies cited on the floor. Pollan said the bill would grandfather the two for‑profit providers already operating in the state while encouraging not‑for‑profit providers to fill gaps in care.

Opponents, including Mister Jensen, questioned whether a categorical ban is the right policy in a state with limited hospice access. They argued the Department of Health’s existing certificate‑of‑need and licensing review could be used to screen applicants rather than imposing a blanket prohibition, and warned that limits on new entrants could reduce capacity in areas with shortages.

Members also disputed whether the bill would increase or decrease access; the sponsor and several members noted that New York ranks low on hospice and palliative care access and urged more outreach and referrals to increase utilization. On the floor some factual details were cited: the sponsor said two for‑profit hospice providers currently operate in New York and cited about 39 not‑for‑profit providers; the sponsor said the measure does not prevent those two providers from expanding non‑bed services such as home care or hospital programs.

The clerk read the last section and the bill was recorded as passed.