N.Y. Comp. Codes R. & Regs. tit. 10, § 86-1.29
(4) The noncomparable operating costs of new facilities as defined in section 86-1.15 of this Subpart and direct graduate medical education costs shall consist of the hospital's budgeted operating costs for these services.
(b) Hospitals on budgeted rates.
Payments to hospitals without adequate cost experience whose rates are based on budgeted cost projections for inpatient acute care services that are not exempt from DRG case-based rates of payment shall be computed in accordance with this Subpart except as follows:
(a) New hospitals.
Payments to new hospitals without adequate cost experience for inpatient acute care services that are not exempt from DRG case-based rates of payment shall be computed in accordance with this Subpart except as follows: