Letter to Administrator/Controller regarding 2.4% Hospital Quality Contribution - effective July 1, 2011
July 29, 2011
In my letter to you dated June 24, 2011, you were advised that Section 2807-d-1 of the Public Health Law was established to create the Hospital Quality Contribution (HQC) for all Article 28 general hospitals. This program was designed to collect $30 million dollars for the state fiscal year April 1, 2011 through March 31, 2012 by applying an assessment on inpatient obstetrical patient care service revenues.
This is to advise you that your July 2011 Hospital Quality Contribution report is due on or before August 15, 2011. The new reporting schedule is included as part of the monthly Health Facility Cash Assessment Program report (HFCAP) and will be available as of August 1, 2011.
The due dates for the HQC are the same as the Hospital Cash Assessment reporting schedule and can be found at http://www.health.ny.gov/facilities/cash_assessment/. The report and payment must be submitted on a timely basis to avoid incurring penalty and interest. Timely payments are defined as: (1) payments received (not postmarked) on or before the 15th of the month (adjusted for weekends and holidays), or (2) payments received after the 15th of the month (adjusted for weekends and holidays) that are postmarked by the 13th of the month.
Failure to make payment and/or file reports by the due date, will result in the imposition of interest and penalty charges pursuant to Section 2807-d of the PHL. This section requires that the rate of interest be twelve percent (12%) per annum on the difference between the amount due and the amount actually paid by the due date for the applicable period accruing from the day of the month payment was due until the date of payment. The statutory penalty is five percent (5%) for each month or fraction thereof that the underpayment is outstanding, up to a maximum of twenty-five percent (25%).
Enclosed are the instructions for the Hospital Quality Contribution report. The enclosed reporting schedule will appear immediately following the Hospital Cash Assessment report. You will receive one confirmation number for both reports and will be able to make one payment. If you should have any other questions, please contact Ms. Megan Ryan at DOH at (518) 474-1673.
John E. Ulberg, Jr.
Division of Health Care Financing