Parent Corporations of Health Care Facilities in New York
In his Health Law column, Francis J. Serbaroli discusses the requirements for parent corporations of licensed health care facilities such as hospitals, nursing homes, diagnostic and treatment centers, ambulatory surgery centers, renal dialysis facilities, and other providers licensed under Article 28 of New York's Public Health Law. He explains that a parent corporation may be either "active" or "passive", the limits of a "passive" parent's role in relation to the licensed provider, and the need for an "active" parent to be licensed under Article 28.
September 29, 2020 at 12:48 PM
7 minute read
Francis J. Serbaroli The health care landscape in New York has undergone dramatic changes over the past few decades. Many formerly independent providers of health care services, including hospitals and physician practices, have merged, been taken over, or have been absorbed into larger systems.
These consolidations have come about in response to a variety of factors including prospects for improved quality of care; integration of clinical and support services; reduced operating costs; stronger negotiating positions with third-party payors; and access to better credit and financing options.
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