HCRA Compliance Reviews
November 18, 2002 - Announcement
New York State's enactment of Chapter 639 of the Laws of 1996, otherwise known as the New York Health Care Reform Act of 1996 (HCRA), substantially deregulated the State's inpatient hospital reimbursement system. It also authorized a series of payor and provider surcharges and assessments to largely fund health care initiatives which had been historically supported under the prior regulated system. The New York Health Care Reform Act (HCRA) of 2000, which was signed into law on December 30, 1999, continues this system of deregulated inpatient hospital rates and pools supported through the aforementioned surcharges and assessments. This law also provided that an allocation of pooled funds be used to audit affected payor and provider compliance with the surcharge and assessment requirements set forth in sections 2807-j, 2807-s, 2807-t of the New York State Public Health Law.
The Department of Health is pleased to announce that we have contracted with the accounting and auditing firm of KPMG LLP of Albany, New York to conduct payor and provider surcharge compliance audits. In the event that an entity to be audited has a current or recent client relationship with KPMG LLP, the alternate auditing firm of Fust Charles Chambers LLP will perform the compliance audit. The audits will enable the Department to verify that all affected organizations are uniformly complying with pool funding obligations established by law.