(a) The rate of payment shall consist of an operating cost per diem and a capital cost per diem, computed from allowable costs and subject to cost category standards. The rate year shall be the 12-month period from July 1st through June 30th. The rate of payment effective July 1, 1995 through June 30, 1996 shall be a continuance of the rate of payment effective July 1, 1994 through June 30, 1995. The rate of payment effective July 1, 2011 through June 30, 2012, and July 1, 2012 through June 30, 2013, shall be a continuance of the rate of payment in effect on June 30, 2011, except to the extent necessary to adjust such payments pursuant to the provisions of subdivision (o) of Section 578.14 of this Part.

This rule making is filed as a Consensus rule on the grounds that its purpose is to conform to non-discretionary statutory requirements.

Chapter 53 of the Laws of 2012 includes a series of programmatic changes and cost-containment measures that are expected to generate savings in fiscal year 2012-2013 and restrain growth in future years. The 2012-2013 enacted State Budget prohibits any cost of living adjustments for the purpose of establishing rates of payments, contracts or any other form of reimbursement for mental health providers. This proposed rule ensures consistency with the enacted State budget by amending 14 NYCRR Part 578 - Medical Assistance Rates of Payment for Residential Treatment Facilities (RTF) for Children and Youth. This rule making freezes rates paid to RTFs licensed pursuant to Article 31 of the Mental Hygiene Law and issued an operating certificate in accordance with 14 NYCRR Part 584. This rate freeze will be effective as of July 1, 2012, and shall continue the rate of payment in effect as of June 30, 2011.

Statutory Authority: Sections 7.09 and 43.02 of the Mental Hygiene Law grant the Commissioner of the Office of Mental Health the authority and responsibility to adopt regulations that are necessary and proper to implement matters under his/her jurisdiction and to establish standards and methods for determining rates of payment made by government agencies pursuant to Title 11 of Article 5 of the Social Services Law for services provided by facilities, including residential treatment facilities, licensed by the Office of Mental Health pursuant to Article 31 of the Mental Hygiene Law. All payments by such agencies shall be at rates certified by the Commissioner and approved by the Director of the Budget. Chapter 53 of the Laws of 2012 requires that Commissioner of Mental Health shall not apply any cost of living adjustment for the purpose of establishing rates of payments, contracts or any other form of reimbursement for mental health providers.

A Job Impact Statement is not submitted with this notice because it is evident from the subject matter of the rule making that there will be no impact upon jobs and employment opportunities. The rule is needed to provide consistency with the enacted 2012-2013 State budget by freezing rates of payments to residential treatment facilities for children and youth that are licensed under Article 31 of the Mental Hygiene Law and issued an operating certificate in accordance with 14 NYCRR Part 584. The rate freeze will be effective as of July 1, 2012.