Disclosure of financial transactions

§ 2805-a. Disclosure of financial transactions. 1. Every general
hospital operating under the provisions of this article shall file with
the commissioner of health within one hundred twenty days after the end
of its fiscal year a certified report showing its financial condition
and all of its financial transactions, including receipts and
expenditures during the fiscal year.

The report shall be in such form as shall disclose all financial
transactions as the commissioner of health may determine necessary to
disclose accurately and specifically the financial condition of each
hospital and its expenditures for the preceding year including but not
limited to:

(a) Its operations and accomplishments.

(b) Its receipts and disbursements, or revenues and expenses, during
such fiscal year in accordance with generally accepted accounting
principles by categories, clinical services and departments as set forth
under the by-laws of the institution and including but not limited to
salaries and other benefits, personnel expenses, operating expenses,
equipment and supplies, and all other direct and indirect disbursements
allocated to each department and clinical service.

(c) Assets and liabilities at the end of its fiscal year including the
status of reserves, depreciation, special or other funds, and including
the receipts and payments of these funds.

(d) Loans and investments, interest, rents and profits from
investments of the hospital.

(e) The location of any real property owned by the hospital.

2. Every general hospital shall also submit:

(a) A report of hospital expenses incurred in providing services
during the period covered by the reports required under this section for
which payment was not received and is not anticipated for such periods
for which pool distributions pursuant to section twenty-eight hundred
seven-c or section twenty-eight hundred seven-k of this article are made
related to such expenses. The report shall be completed in accordance
with regulations developed by the council and approved by the
commissioner which shall include definitions for bad debts and charity
care. The report shall identify as bad debts or charity care the cost of
services provided to emergency inpatients, non-emergency inpatients,
emergency ambulatory patients, clinic patients and referred or private
ambulatory patients for which the hospital did not receive and does not
anticipate payment.

(b) A statement of anticipated capital related expenses as defined in
subdivision eight of section twenty-eight hundred seven-c of this
article for the forthcoming calendar year at least one hundred twenty
days, or such shorter period as the commissioner shall determine, prior
to the commencement of such year. The report shall be completed in
accordance with subdivision eight of section twenty-eight hundred
seven-c of this article and any regulations adopted pursuant thereto.

3. Every general hospital shall submit a monthly report of gross
inpatient revenue received and within one hundred twenty days after the
end of the calendar year a certified annual report of gross inpatient
revenue received for hospital inpatient service provided on or after
January first, nineteen hundred eighty-eight through December
thirty-first, nineteen hundred ninety-nine and on and after January
first, two thousand. The reports shall be in such form as may be
prescribed by the commissioner to accurately disclose gross inpatient
revenue received.

* 4. The commissioner may, to effectuate the purpose of this article,
vary the nature of the report required according to the size or capacity
of the hospital.

The contents of all reports submitted hereunder shall be public
information and such reports shall be available for public inspection
under such conditions as the commissioner shall prescribe.

The commissioner of health when he has reasonable cause to believe
that the books or records do not accurately reflect the financial
condition and/or financial transactions of the hospital, may examine the
books and records of the hospital, subpoena witnesses and documents and
make such other investigation as is necessary to enable him to determine
the facts relative thereto.

* NB Effective until October 1, 2025

* 4. (a) Every general hospital operating under the provisions of this
article that is required to file an IRS Form 990 in accordance with
federal regulations shall file with the commissioner, by July first of
each calendar year, a completed copy of the most recent IRS Form 990 as
submitted to the IRS, and the information the general hospital used to
complete the IRS Form 990 in a manner prescribed by the department,
showing how the hospital spent community benefit expenses, which shall
include but not be limited to, information to identify the specific
community benefit expenses supporting the hospital's local community.
General hospitals operating under the provisions of this article that
are not required to file an IRS Form 990 shall be required to submit
information, in a manner prescribed by the department, showing how the
hospital spent community benefit expenses in the same manner.

(b) The department shall compile the information reported in a report
issued and posted on the department's website by October first, two
thousand twenty-six, and on an annual basis thereafter, and delivered to
the governor, the speaker of the assembly, the temporary president of
the senate, the chair of the assembly health committee, the chair of the
senate health committee, the chair of the senate finance committee, the
chair of the assembly ways and means committee, and the minority leaders
of the assembly and the senate. The report shall include, at a minimum,
information on:

(i) Total community benefit expenses in the state reported by each
general hospital;

(ii) How such community benefit expenses were distributed in the
aggregate across the following categories:

(1) Financial assistance at cost, which shall include any free or
discounted services for those who cannot afford to pay and meet the
hospital's financial assistance criteria;

(2) Unreimbursed costs from Medicaid;

(3) Unreimbursed costs from the children's health insurance program or
other means-tested government programs;

(4) Community health improvement services and community benefit
operations, which shall include costs associated with planning or
operating community benefit programs, but shall not include activities
or programs if they are provided primarily for marketing purposes or if
they are more beneficial to the hospital than to the community;

(5) Health professions education programs that result in a degree or
certificate or training necessary for residents or interns to be
certified;

(6) Subsidized health services, which shall include services with a
negative margin, services that meet an identifiable community need and
services that if no longer offered would be unavailable or fall to the
responsibility of another nonprofit or government agency;

(7) Research that produces generalizable knowledge and is funded by
tax-exempt sources; and

(8) Cash and in-kind contributions for community benefit, for which
in-kind donations may include the indirect cost of space donated to
community groups and the direct cost of donated food or supplies;

(iii) Details on negative-margin services that were reported by
hospitals as part of community benefit expenses; and

(iv) Details on community benefit programs reported by hospitals as
part of community benefit expenses.

* NB Effective October 1, 2025

* 5. The commissioner may, to effectuate the purpose of this article,
vary the nature of the report required according to the size or capacity
of the hospital.

The contents of all reports submitted hereunder shall be public
information and such reports shall be available for public inspection
under such conditions as the commissioner shall prescribe.

The commissioner of health when he has reasonable cause to believe
that the books or records do not accurately reflect the financial
condition and/or financial transactions of the hospital, may examine the
books and records of the hospital, subpoena witnesses and documents and
make such other investigation as is necessary to enable him to determine
the facts relative thereto.

* NB Effective October 1, 2025