DOH Issues Revised Equity Withdrawal Form

Carl J. Pucci in Finance & Reimbursement

DOH has posted the revised Owners’ Equity Withdrawal form and related DAL to the HCS website.

Notable revisions are as follows: 

  • Adapts 2010 amended statute reflecting three percent threshold of total annual revenue vs. Medicaid revenue;
  • Now requires sixty days notice of anticipated withdrawal;
  • Maintains existing provision that equity withdrawal include withdrawals made for the purpose of paying federal and/or state taxes (notwithstanding the Court of Appeals decision in Brightonian v. Daines which stated, among other things, that payments for taxes are not counted towards the three percent threshold);
  • Requires additional information related to equity distributions paid to owners for salaries, as well as to affiliated entities;
  • Requires disclosure of any outstanding owner loan balances to the facility;
  • Requires inclusion of monthly cash flow and balance sheet for the current period;
  • Now requires electronic filing to the nfrates@health.ny.gov address.

NYSHFA is providing an audio conference next Tuesday, September 12, 2017 from 10:00 am to noon on Withdrawal of Equity. Attached is a link to the conference brochure.

In addition, a video of the 7/13/17 capital webinar (along with the PowerPoint and FAQ’s) is also posted to the HCS. Both items are located within the Nursing Home Cost Report section of the HCS.

NYSHFA CONTACT:

Carl J. Pucci
Chief Financial Officer
518-462-4800 x36