New York Moves to Protect Hospice Care with Nonprofit Law

Legislation aimed at preserving the integrity of hospice care in New York is gaining momentum. On the table is bill S3437/A565, which seeks to prohibit the expansion of for-profit hospice programs in the state. Advocates are urging Governor Kathy Hochul to sign this bill into law, emphasizing the need for compassionate, quality end-of-life care for terminally ill patients.

New York has long recognized the importance of certain healthcare sectors operating as nonprofit entities. Just as general hospitals are mandated to function without profit motives, hospice care should follow suit. Currently, approximately 70% of hospice centers across the United States are for-profit institutions. Research indicates that these entities often engage in practices that compromise care quality, such as selectively admitting patients, minimizing necessary staff, and aggressively marketing to individuals who may not require hospice services.

Opponents of S3437/A565 argue that New York’s lower hospice utilization rate justifies the presence of for-profit providers. However, advocates contend that the issue lies not in the number of providers but rather in a lack of awareness regarding the Medicare hospice benefit. Misconceptions about hospice care and the diversion of patients to skilled nursing facilities further hinder hospice enrollment. Allowing for-profit hospices to expand will not address these systemic issues.

Critics also reference the Certificate of Need (CON) process, which is managed by the New York State Department of Health, suggesting it can weed out unsuitable applicants. While this regulatory framework is vital, it primarily assesses financial viability rather than the mission-driven values essential for hospice care. The CON process does not evaluate ethical commitments or long-term quality practices, which are critical when dealing with vulnerable patients and their families.

The limitations of the CON process mean that once for-profit hospices are approved, the state has limited capacity to intervene if care quality declines. This oversight can lead to troubling patterns, such as prioritizing profitable patients over those with greater care needs, reducing nursing visits, and employing aggressive marketing strategies to attract inappropriate patients.

Recent polling by Siena College reveals that New Yorkers overwhelmingly support the prohibition of for-profit hospices. A significant majority of voters express a desire for stronger protections, particularly for seniors, against potential waste, fraud, and abuse associated with for-profit entities. This proposed legislation aligns with the principles outlined in New York’s Master Plan for Aging, which emphasizes dignity, respect, and compassionate care for older residents.

As S3437/A565 awaits the Governor’s signature, advocates remain hopeful that this bipartisan-supported bill will be enacted. The move could significantly enhance the quality of hospice care in New York, ensuring that terminally ill patients receive the compassionate support they need during their final days. The bill has already seen bipartisan approval in both legislative houses, signaling widespread recognition of the importance of protecting hospice care from profit-driven motives.