Cash Receipts Assessment Program

May 4, 2005

Dear Administrator/Controller:

Re: Health Facility Cash Receipts Assessment Program - Hospitals

This letter is to advise you of the recent enactment of a .35% Health Facility Cash Receipts Assessment applicable to cash received by general hospitals licensed under Article 28 of the Public Health Law (PHL) for the period April 1, 2005 through March 31, 2007.

Section 18 of Part C of Chapter 58 of the Laws of 2005 contains the following provisions authorizing this assessment:

<"Notwithstanding any contrary provisions of this paragraph or any other provision of law or regulation, for general hospitals the assessment shall be thirty-five hundredths of one percent of each general hospital's gross receipts received from all patient care services and other operating income on a cash basis for the period April first, two thousand five through March thirty-first two thousand seven for hospital or health-related services, including, but not limited to inpatient service, outpatient service, emergency service, referred ambulatory service and ambulatory surgical services, but not including residential health care facilities services or home health care services. Provided, however, the assessment shall not be collected in excess of one hundred six million fifteen thousand dollars for each of the periods April first, two thousand five through March thirty-first, two thousand six and April first, two thousand six through March thirty-first, two thousand seven. The amount of the assessment collected in excess of such amount shall be refunded to general hospitals based on the ratio which a general hospital's assessment for such period bears to the total of the assessments for such period paid by general hospitals."

Section 20 of this same Chapter Law, as amended by Chapter 63 of the Laws of 2005, defers the first collection of this surcharge to December 1, 2005, and requires that obligations attributable for the months of April through November 2005, be proportionately added to amounts otherwise due for the December 2005 through March 2006 assessment months. Consequently, hospitals should defer submission of required assessment payments until receipt of further notification from the Department. A future DOH transmittal will be issued to provide relevant payment and reporting instructions.

Should you have any questions concerning this matter, please contact Mr. Walter Susko or Ms. Karla Knuth of the Bureau of Financial Management and Information Support at (518) 473-4653.

Sincerely,

Mark H. Van Guysling
Assistant Director
Division of Health Care Financing