Relates to prohibiting the establishment of new for-profit hospices

2025 Regular Session Introduced by Nathalia Fernández and 5 co-sponsors

Prohibits establishing, incorporating, constructing, or expanding capacity of for-profit hospices in New York, shifting growth to non-profit or government providers.

COMMITTED TO RULES

Summary of Bill S. 9196 (2025-2026) – New York

This bill would prohibit the establishment, incorporation, construction, or capacity expansion of for-profit hospices in New York, effectively restricting the creation and growth of hospices operated on a for-profit basis.

Purpose and intent

To prevent the establishment of new hospices that are operated for profit or by for-profit entities, in whole or in part.

To restrict increases in capacity of existing hospices that are operated on a for-profit basis.

The measure aims to shift or maintain hospice care within non-profit or public frameworks (as the bill targets for-profit operations).

Key provisions and changes

Amends public health law, section 4004, subdivision 3 by adding a new paragraph (a-1).

Prohibitions:

No approval for establishment, incorporation, or construction of a hospice if the proposed operation would be for-profit (in whole or in part).
No approval for any increase in capacity for an existing hospice that is for-profit (in whole or in part).

Applicability: The prohibitions apply to approvals issued on or after the statute’s effective date.

Effective date: The act takes effect immediately upon enactment.

Who or what is affected

For-profit hospices: Directly prohibited from new establishment, incorporation, construction, or capacity expansion.

Existing hospices operated by for-profit entities: Subject to restrictions on increasing capacity.

Non-profit or government-operated hospices are not restricted by these provisions and may continue under existing rules.

Procedural and timeline aspects

Status: Introduced February 13, 2026; referred to the Senate Committee on Health.

Legislative path shown by action history: moved through committee consideration, advanced to third reading, and committed to rules as of June 5, 2026 (indicating passage or readiness for floor action in the Senate, subject to further legislative steps in the Assembly and potential enactment).

Immediate effect clause: Once enacted, the prohibitions take effect immediately.

Practical considerations and potential impact

Access and care implications: Could alter the hospice care market by restricting for-profit providers, potentially increasing reliance on non-profit or public hospice services or affecting overall capacity and distribution of hospice resources.

Financial and governance implications: For-profit hospice operators may be displaced or constrained from expanding; potential impact on investment, staffing models, and service delivery in the sector.

Regulatory dynamics: Shifts regulatory emphasis toward non-profit or public hospice options; could influence coordination with Medicaid/Medicare and other payer arrangements depending on existing contracts and reimbursement structures.

If you’d like, I can compare this bill to current New York hospice regulations or summarize related bills addressing for-profit provisions in other health care sectors.