New York Codes, Rules and Regulations
Title 14 - DEPARTMENT OF MENTAL HYGIENE
Chapter XIII - Office of Mental Health
Part 599 - Clinic Treatment Programs
Section 599.15 - Indigent care

(a) The indigent care program for Mental Health Outpatient Treatment and Rehabilitative Service programs has been established by New York State to offset a portion of the losses from uncompensated care experienced by diagnostic and treatment centers licensed by the New York State Department of Health and mental health Mental Health Outpatient Treatment and Rehabilitative Service programs licensed by the Office that are not also licensed by the New York State Department of Health and/or not directly operated by the Office.

(b) Eligible mental health Mental Health Outpatient Treatment and Rehabilitative Service programs for purposes of this section shall mean non-profit or county-sponsored Mental Health Outpatient Treatment and Rehabilitative Service programs that can demonstrate losses from a disproportionate share of uncompensated care during a base period two years prior to the grant period; with the exception of the transition period to be established by the Office in guidance. Non-profit mental health Mental Health Outpatient Treatment and Rehabilitative Service programs meeting or exceeding profit margins and total net assets established pursuant to subsection (k) of this section shall not be eligible for allocations pursuant to this section.

(c) Uncompensated care need, for purposes of this section, means the following, subject to limitations to be provided in guidance by the Office:

(d) To be eligible for an allocation of funds pursuant to this section, a mental health program must demonstrate that a minimum of five percent of total Mental Health Outpatient Treatment and Rehabilitative Service program visits reported during the applicable base year period meet the eligibility requirements for the pool. For Mental Health Outpatient Treatment and Rehabilitative Service programs operated by an agency that operates more than one Mental Health Outpatient Treatment and Rehabilitative Service program, to be eligible for an allocation of funds pursuant to this section, the agency must demonstrate that a minimum of five percent of its total Mental Health Outpatient Treatment and Rehabilitative Service program visits meets these requirements. To be eligible, Mental Health Outpatient Treatment and Rehabilitative Service programs must further demonstrate that they maintain a sliding fee scale for uninsured individuals.

(e) Documentation of uncompensated care need must be retained by the Mental Health Outpatient Treatment and Rehabilitative Service program and will be subject to an audit by the New York State Office of the Medicaid Inspector General or other party empowered to conduct such audits.

(f) Rules for the reporting of data on uncompensated care visits to the Office will be established in guidance. Providers participating in the uncompensated care pool that do not submit annual data by dates to be established by the Office will be excluded from the pool for that year.

(g) A mental health program qualifying for a distribution pursuant to this section shall provide assurances satisfactory to the Commissioners of Health and Mental Health that it shall undertake reasonable efforts to maintain financial support from community and public funding sources and reasonable efforts to collect payments for services from third-party insurance payers, governmental payers and self-paying patients.

(h) To be eligible for reimbursement pursuant to this section, claims must be consistent with the Medical Assistance billing standards set forth in this Part. Payments from the indigent care pool shall be made in accordance with the payment rules established by the Office and the Department of Health.

(i) The allocations of funds to a mental health Mental Health Outpatient Treatment and Rehabilitative Service program may be reduced if the Office determines that provider management actions or decisions have caused a significant reduction for the grant period in the delivery of mental health services to uncompensated care residents of the community.

(j) The value of uncompensated care payments will be established in guidance issued by the Office.

(k) Except as provided in subdivisions (1) and (2) of this subsection and excluding mental health Mental Health Outpatient Treatment and Rehabilitative Service programs operated by hospitals licensed pursuant to Article 28 of the Public Health Law, providers operating mental health Mental Health Outpatient Treatment and Rehabilitative Service programs generating net profits from the Mental Health Outpatient Treatment and Rehabilitative Service program in excess of fifteen percent of total revenue and which report total net assets in excess of two times their total annual operating budget, as determined by the provider's submissions pursuant to subsection (o) of section 599.6 of this Part, shall implement a provider-specific indigent care compliance plan approved by the Office to serve individuals without creditable coverage or the ability to pay the provider's private pay or sliding fee scale, Such indigent care compliance plan shall include terms regarding the acceptance of referrals to serve such individuals from the Office, Local Government Unit, or community and remain in effect until the Office determines that net profits and assets no longer exceed the levels established in this subsection. A provider that fails to fully comply with this subsection may have limitations placed on its operating certificate or other sanctions imposed, in accordance with state law and regulations.