N.Y. Comp. Codes R. & Regs. Tit. 10 § 86-4.28 - Related organizations
(a) A
related organization shall be defined as any entity which controls the facility
or which the facility controls, either directly or indirectly, or an
organization or institution whose actions or policies the facility has the
power, directly or indirectly, to significantly influence or direct, or a
special purpose organization or where an association of material interest
exists in an entity which supplies goods and/or services to the facility, or
any entity which is controlled directly or indirectly by the immediate family
of the operator. Immediate family shall include each parent, child, spouse,
brother, sister, first cousin, aunt and uncle, whether such relationship arises
by reason of birth, marriage or adoption. A special purpose organization shall
be defined as an organization which is established to conduct certain of the
facility's patient-care-related or nonpatient-care related activities. The
special purpose organization shall be considered to be related if:
(1) the facility controls the special purpose
organization through contracts or other legal documents that allow direct
authority over the organization's activities, management and policies;
or
(2) the facility is, for all
practical purposes, the sole beneficiary of the special organization's
activities. The facility shall be considered the special purpose organization's
sole beneficiary if one or more of the three following circumstances exist:
(i) a special purpose organization has
solicited funds in the name of and with the expressed or implied approval of
the facility, and substantially all the funds solicited by the organization
were intended by the contributor or were otherwise required to be transferred
to the facility or used at its discretion of direction;
(ii) the facility has transferred some of its
resources to a special purpose organization, substantially all of whose
resources are held for the benefit of the facility; or
(iii) the facility has assigned certain of
its functions (such as the operation of a dormitory) to a special purpose
organization that is operating primarily for the benefit of the
facility.
(b)
The costs of goods and/or services furnished to a facility by a related
organization shall be included in the computation of the basic rate at the
lower of the cost to the related organization or the market price of comparable
goods and/or services available in the facility's region within the course of
normal business operations.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.