Top NY Court Backs Oversight Of Nursing Homes’ Cash Deals

Law360, New York (October 15, 2013, 5:14 PM EDT) -- New York’s highest court on Tuesday endorsed a law prohibiting nursing home operators from consummating cash transactions of a certain size without authorization from state health regulators, unconvinced that the law trampled the businesses' right to spend money as they please.

Under the statute, residential health facilities must receive approval before they can withdraw equity or assets exceeding 3 percent of their last annual patient care revenue total. The New York Court of Appeals determined that the law was not facially unconstitutional, reversing a lower appellate court....
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