Universal Settlement Update

Esq. Stephen B. Hanse and Carl J. Pucci in Finance & Reimbursement

The deadline for completing the universal settlement on-line response form was recently concluded. At the present time, 680 responses have been received. Of these responses, 658 voted in favor of the settlement and 22 voted against the settlement, for an overall response acceptance rate of approximately 97 percent. Pursuant to the settlement Term Sheet, the State will determine whether this response is sufficiently “universal” to allow the process to proceed.

Assuming that the State deems the response sufficient to proceed, there are several matters that must be addressed before the universal settlement is in place and payments are made. These matters include the following:

  • Each facility participating in the universal settlement will have to sign and return to the State a yet to be created settlement agreement and release accepting the terms of the settlement;
  • Each facility participating in the universal settlement must submit to the Department of Health (“DOH”) a list setting forth all appeals and litigation they consider excluded from the settlement (the DOH must concur that the listed appeals and litigation are excluded); and
  • CMS must approve the universal settlement.

As previously noted, the general terms of the universal settlement would settle all known and unknown claims, appeals or litigation brought by a current or former owner relating to the State’s pre-pricing rate methodology utilized prior to January 1, 2012 and filed before or after January 1, 2012. The settlement also covers certain actions commenced subsequent to January 1, 2012. The universal settlement would allocate approximately $850M to be paid out over a five year term ($170M annually).

NYSHFA continues to encourage member facilities to review their inventories of unprocessed rate appeals and outstanding litigation in order to ensure excluded appeals and litigation are preserved.

NYSHFA will continue to provide regular Member Mailing updates as the universal settlement process continues.


Stephen B. Hanse, Esq.
Vice President & Counsel, Governmental Affairs
518-462-4800 x25

Carl J. Pucci
Director, Finance & Reimbursement
518-462-4800 x36