N.Y. Comp. Codes R. & Regs. tit. 10, § 86-2.38 – Nursing home incentive payment.

(a) The commissioner shall make rate adjustments, subject to the availability of funds therefore, to certain residential health care facilities who demonstrate to the satisfaction of the commissioner that they can meet or exceed defined quality measures.
(b) Initial awards shall be based on a residential health care facility's performance for pressure ulcer quality of care for chronic care residents.
(c) The commissioner shall make two sets of awards as follows:
1. (1) an award shall be made for the best performers for the evaluation period;
2. (2) an award shall be made to residential health care facilities with the best improvement in pressure ulcer care between a base and evaluation period except that facilities in the bottom quarter percentile of all eligible residential health care facilities for this evaluation period shall not be eligible for such an award if, even after their improvement in pressure ulcer care, they still remain in the bottom quarter percentile of all eligible residential health care facilities; and
3. (3) residential health care facilities that qualify are eligible to receive an award in both categories of awards.
  (d)
4. (1) The evaluation period for the award for best performers shall be January 1, 2007 through December 31, 2007.
5. (2) The base period for the award for best improvement shall be July 1, 2006 through June 30, 2007, which shall be compared to the period July 1, 2007 through June 30, 2008.
(e) The following factors shall be considered by the commissioner in making awards pursuant to this section:
1. (1) the quality measure of pressure ulcer care shall be risk adjusted using such patient health factors to include but not be limited to: coma, malnutrition, diseases and conditions related to pressure ulcer, low body mass index, and plegia (paraplegia or hemiplegia);
2. (2) pressure ulcer rates shall be considered only for chronic care residential health care facility residents;
3. (3) in order to be eligible to be considered for a rate enhancement, a residential health care facility must have averaged more than one prevented pressure ulcer per quarter of the evaluation period identified in subdivision (d) of this section as calculated by comparing the actual number of residents with a pressure ulcer to the expected number of residents with a pressure ulcer, based on the facility's risk adjusted pressure ulcer rate developed pursuant to this subdivision; and
4. (4) Any residential health care facility receiving a written deficiency for substandard quality of care, as defined in Federal regulation 42 C.F.R. § 488.301, during the evaluation periods contained in this section shall be excluded from receiving an award under this section.
(f) Rate adjustments made pursuant to this section for residential health care facilities receiving monetary awards shall be made based on the residential health care facility's percent of patient days of care attributable to patients eligible for medical assistance pursuant to title 11 of article 5 of the Social Services Law.
(g) Residential health care facilities chosen to receive rate enhancements pursuant to this section shall, prior to the rate enhancement, inform the commissioner in writing as to their proposed use of the additional monies to further improve quality and care of patients in the residential health care facility.