N.Y. Comp. Codes R. & Regs. tit. 10, § 86-1.22 – Alternate level of care payments.

(a) Hospitals shall be reimbursed for ALC days at the appropriate 1987 group average operating cost component of rates of payment for hospital-based residential health care facilities established pursuant to Subpart 86-2 of this Part trended to the rate year. The determination of the group average operating rate for hospital-based residential health care facilities shall be based on the combination of residential health care facilities as follows:
1. (1) the downstate group consisting of residential health care facilities located in the five boroughs of New York City and Nassau, Suffolk, Westchester and Rockland Counties;
2. (2) the upstate group consisting of all other residential health care facilities in the State.
(b) Hospitals that convert medical/surgical beds to residential health care beds shall be reimbursed for services provided in the converted beds in accordance with Subpart 86-2 of this Part.