December 2011 - DOH Finalizes Methodology for Medicaid Nursing Home Pricing 
The Department of Health (DOH) has finalized the methodology for Medicaid Nursing Home pricing to be implemented with a January 1, 2012 effective date. The methodology employs the following key features:

• Blended WEF: 50% Facility-Specific; 50% Regional Average

• Blended Price: 50% Statewide Average; 50% Peer Group Average

• Two Peer Groups: Hospital-Based and/or 300+ Beds; All other facilities

• 6-Year transition to full implementation

• Per Diem Add-ons for Dementia, BMI & TBI

• Case Mix Index (CMI) continues as RUG-53 Medicaid-Only basis but is no longer applied retroactively (i.e., July 2012 rate based on January 2012 CMI, January 2013 rate based on July 2012 CMI, etc.)

Additionally, the DOH has made a proposal to the industry to add $100 Million annually to the available pool for reimbursement to be distributed among all the facilities. The additional funding is dependent upon the industry-wide rescission of pending rate litigation and withdrawal of open rate appeals.

If you have questions or would like further details, please contact Anna Rizzo, Principal, Health Care Consulting at arizzo@loebandtroper.com or at 212-697-3000.

December 2011 - Loeb & Troper is Pleased to Provide an Overview of $450 Million in Grant Funding Available Under a DOH/Dormitory Authority/HEAL Initiative—Restructuring Initiatives in Medicaid Redesign 
Overview - The New York State Department of Health and the Dormitory Authority of the State of New York recently jointly announced the availability of $450 million in grant funding under a new phase of the Health Care Efficiency and Affordability Law of New York State (HEAL) and the Federal–State Health Reform Partnership (F-SHRP). The grant funds have been earmarked to help health care facilities address excess bed capacity in the health care system, improve primary and community-based care, and reduce over-reliance on inpatient care in hospitals and nursing homes.
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December 2011 - Brian O’Reilly presents Compliance with the Reimbursable Cost Manual (RCM) for IAC   
Loeb & Troper is pleased to announce that Brian O’Reilly, CPA, Partner, will facilitate an IAC training session on Compliance with the Reimbursable Cost Manual (RCM) on December 19.

November 2011 - Anna Rizzo presents at LeadingAge New York   
Loeb & Troper is pleased to announce that Anna Rizzo, Principal, will present on Medicaid rate sheets for 2012, including a general analysis of the rate sheets and specific concerns for the upcoming year at the November 9th Downstate Financial Managers Council of LeadingAge New York.

October 2011 - Reminder: Property Tax Exemption Renewal Forms Due October 24, 2011   
Charitable organizations that qualify for the New York City charitable property tax exemption are reminded that they have until Monday, October 24, 2011, to file the exemption renewal form to ensure they continue to qualify for exemption. To qualify for an exemption, the property should be owned by a charitable organization and used for a charitable purpose under New York State law. Federal tax exemption does not automatically qualify an organization for this City tax exemption. Properties that no longer meet the requirements or those organizations who fail to complete and submit the renewal forms will have their benefits revoked for the 2012 tax year.

Visit http://www.nyc.gov/html/dof/html/property/property_tax_reduc_non_profit.shtml for more details. For further information, please contact Eva Mruk, Director of Tax Compliance, at 212-867-4000 or emruk@loebandtroper.com.

October 2011 - Loeb & Troper Assists with Transition to Managed Long Term Care   
Against a backdrop of unprecedented change in the health care arena, including historic changes put forth by the New York State Medicaid Redesign Team, long-term care providers will soon be faced with the impact of addressing mandatory managed care enrollment for recipients of Medicaid benefits. Significant changes for long term care providers include but are not limited to:

■ Mandatory enrollment in managed long term care:  Beginning April 1, 2012, adults over the age of 21 who are dually eligible for Medicare and Medicaid and require community-based long term care services for more than 120 days will be required to enroll in a managed long term care or other care coordination program. This requirement will impact Certified Home Health Care Agencies, Long Term Home Health Care Programs and Adult Day Health Care Programs currently providing services to these recipients on a fee-for-service basis. In addition, the managed long term care program will be required to cover long term skilled nursing facility care when applicable.

■ Long Term Skilled Nursing Facility benefit added to Mainstream Managed Care:  As of October 1, 2012, Medicaid only skilled nursing facility residents will be required to enroll in a mainstream Medicaid managed care plan.

These new requirements will have a significant impact on reimbursement for long term care providers.  Loeb & Troper is considered the market leader in understanding the impending changes, from a financial, clinical and strategic perspective. We can help familiarize providers with the parameters and assess the potential impact. We have also been instrumental in helping providers form and/or participate in strategic alliances. We are uniquely positioned to assist executives and board members navigate through this uncharted territory.

For further information, please contact Koy Dever at kdever@loebandtroper.com.

October 2011 - Loeb & Troper Exhibits at CHCANYS   
Loeb & Troper LLP is pleased to exhibit at the Community Health Care Association of New York State's 2011 Statewide Conference in Saratoga, NY, from October 16-18.

September 2011 - Not-for-Profit Executive Compensation   
Overview - Governor Cuomo recently established a Task Force to investigate executive, administrator and board compensation levels at not-for-profits that receive taxpayer support from the State of New York. This underscores the importance of making sure that the highest levels of due diligence are established and followed when determining executive compensation. The New York Not-for-Profit Law authorizes corporations to provide reasonable compensation for commensurate services. However, in the absence of specific criteria governing compensation, as well as the diverse standards by which organizations may establish executive compensation, the State has significant latitude in its interpretation and implementation of the law. This makes it imperative to be able to document that the procedures used by your own organization are reasonable and sound and are commensurate with the scale and scope of the organization.

Update - The Task Force is sending out letters, on a rolling basis, to all not-for-profits that receive funding from New York State. The letters request significant information from the not-for-profit, covering the periods from 2007-2011, ranging from documentation regarding executive compensation to a description justifying the organization being a not-for-profit. While some of the information may be readily available, some information may require compilation for the first time. The Task Force is requesting the information in a specific Microsoft Excel format.

Action - With the ultimate goal of the Task Force yet to be clearly defined, it is difficult for organizations to prepare accordingly. However, we are recommending that organizations work with their auditors, attorneys and/or compensation consultants to compile any and all information regarding compensation with respect to the Task Force’s inquiry.

As the efforts of the Governor’s Task Force evolve, we will continue to communicate the details to our clients and colleagues. For further information, please contact Allan M. Blum, CPA, Partner, at ablum@loebandtroper.com.

September 2011 - Relief for Irene Victims: Tax Deadlines Extended in Declared Disaster Areas   
The Internal Revenue Service is providing tax relief to individual and business taxpayers impacted by Hurricane Irene. The IRS announced that certain taxpayers in New York, New Jersey, and other affected States will receive tax relief. The tax relief postpones certain tax filing and payment deadlines to October 31, 2011. It includes corporations and businesses that previously obtained an extension until September 15, 2011, to file their 2010 returns and individuals and businesses that received a similar extension until October 17, 2011. It also includes the estimated tax payment for the third quarter of 2011, which would normally be due September 15, 2011. For full details, please visit http://www.irs.gov/newsroom/article/0,,id=245004,00.html?portlet=7.  The list of expanded federal disaster areas is subject to change. Please check periodically for updates.

The New York State Department of Taxation and Finance issued similar relief today. For full details, please visit http://www.tax.ny.gov/pdf/notices/n11_8.pdf. 

August 2011 - Nursing Facilities Experiencing Financial Difficulties   
The New York State Department of Health (DOH) recently sent a “Dear Administrator Letter” to nursing facilities experiencing financial difficulties advising that the DOH is beginning its efforts to implement the Negotiated Appeals Settlement Program.  In order to participate in this program, the facility must submit a Letter of Interest, which includes a primary contact at the facility, a list of outstanding appeals, by appeal number, and the name of the external auditor. Eligible facilities are those that the DOH has identified based upon its criteria. The Letter of Interest must be submitted on or before August 15, 2011.  If you received the notification letter from DOH, Loeb & Troper can assist you in preparing the necessary documentation to participate in the program, determining the impact of participating and with the estimated valuation of appeals, which is due on or before September 15, 2011.

For further information, please contact Kathy Gill at kgill@loebandtroper.com.

July 2011 - Changes in the Labor Law: Wage Theft Prevention Act (WTPA) Notice of Rates of Pay and Regular Payday   
Effective April 9, 2011, the Wage Theft Prevention Act requires all employers, other than governmental agencies, to give employees at the time of hire (before work is performed) and on or before February 1st of each year, annual written notice of wages, paydays and other information. For new employees, notice is required within 10 days of hire. For current employees, the deadline to give the notice is February 1, 2012. After that, the notice must be given to all employees annually. Employers must not only give out the notices but also collect employees' signatures on them and keep them for six years. The new law increases penalties for underpayment of wages and for failure to give proper notice. Notice forms for the various kinds of employees (full-time, temporary, hourly, exempt and others) are available from the New York Department of Labor at www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm. For additional information, please visit www.labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document. 

June 2011 - Report of Foreign Bank and Financial Accounts (FBAR): Due June 30, 2011   
This updates previously posted information on our website. 

The Internal Revenue Service has provided an additional extension on the requirements for filing a form disclosing a foreign bank account. Persons having signature authority over, but no financial interest in, a foreign financial account in 2009 or earlier calendar years for which the reporting deadline was extended by Notice 2009-62 or Notice 2010-23 will now have until November 1, 2011, to file FBARs with respect to those accounts. The deadline for reporting signature authority over, or a financial interest in, foreign financial accounts for the 2010 calendar year remains June 30, 2011. A copy of revised FinCEN Notice 2011-1 can be found at www.fincen.gov.

In general, a FBAR must be filed by a “United States Person” that has a financial interest in or signature authority over foreign financial accounts where the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.  The following persons are treated as United States Persons (“U.S. Person”) for FBAR filing purposes: (1) U.S. citizens, (2) U.S. residents (lawful permanent residents as well as aliens with substantial presence in the U.S.), (3) Entities, including corporations, partnerships, and limited liability companies organized in the U.S., and (4) Trusts or estates organized in the U.S.  A U.S. Person can have a “financial interest” in a foreign financial account where the U.S. Person has direct ownership in the account, or where the U.S. Person has indirect ownership in the account through agents or nominees, or as the result of majority ownership in one or more entities that control the entity owning the foreign financial account.  Final Regulations: http://www.fincen.gov/news_room/nr/pdf/20110224.pdf

The Final Regulations define a “financial account” as including “an account with a mutual fund or similar pooled fund which issues shares available to the general public that have a regular net asset value determination and regular redemptions.” Consequently, offshore hedge funds and private equity funds which are not offered to the public will not constitute financial accounts reportable on FBARs. Owners of offshore private investment fund interests, and individuals with signature authority with respect to such interests, are not required to report these interests on FBARs.  The Final Regulations define “signature or other authority” as “the authority of an individual (alone or in conjunction with another) to control the disposition of money, funds or other assets held in a financial account by direct communication (whether in writing or otherwise) to the person with whom the financial account is maintained.”

According to the Treasury, “the test for determining whether an individual has signature or other authority over an account is whether the foreign financial institution will act upon a direct communication from that individual regarding the disposition of assets in that account.” Treasury explained that the phrase “in conjunction with another” is “intended to address situations in which a foreign financial institution requires a direct communication from more than one individual regarding the disposition of assets in the account.”  Treasury provided in the Final Regulations exemptions to the FBAR reporting requirements for officers or employees with signature authority over foreign financial accounts maintained by certain entities. These exceptions are limited and do not apply to individuals who have signature authority over accounts of entities other than their employer (or entities of which the individual is an officer), including controlled or related entities.

Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties, criminal penalties, or both.  For assistance in completing the Form TD F 90-22.1 http://www.irs.gov/pub/irs-pdf/f90221.pdf please contact the IRS at 1-800-800-2877 (option 2) or by email at FBARquestions@irs.gov.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.  For further information, please contact Eva Mruk, Director of Tax Compliance, at 212-867-4000 or emruk@loebandtroper.com.

March 2011 - NYS Charities Bureau Issues NYPMIFA Guide   
The Office of the Attorney General, New York State, Charities Bureau recently issued a guide regarding the New York Prudent Management of Institutional Funds Act (NYPMIFA).  Please click the following link to access the guide: http://www.charitiesnys.com/pdfs/NYPMIFA-Guidance-March-2011.pdf.  If you have any questions regarding NYPMIFA, please contact either Joseph Blatt, CPA, Partner, at jblatt@loebandtroper.com; or Allan M. Blum, CPA, Partner, ablum@loebandtroper.com.