N.Y. Comp. Codes R. & Regs. tit. 10, § 406.2 – Applicability.

(a) With the prior approval of the commissioner pursuant to Part 710 of this Title and upon certification by the Health Care Financing Administration (HCFA), general hospitals located in a rural area including all areas not delineated as urbanized areas by the U.S. Census Bureau and licensed, exclusive of bassinets for newborns, distinct part psychiatric and rehabilitation unit beds and beds in intensive care inpatient units, for fewer than 100 inpatient beds or for 100 or more inpatient beds but consistently utilizing and staffing fewer than 100 beds shall be permitted to participate in the swing bed demonstration program. Participation in the program shall be for a period of three years and in accordance with the requirements of this Part. The program shall be conducted so as to show the extent and effect of the program on the availability and effective and economical provision of long-term care services in rural areas.
(b) The swing bed program shall utilize inpatient facilities and available beds in a manner which assures the provision of services to patients in accord with their assessed needs and shall be subject to the following:
1. (1) the swing bed program shall provide care throughout the period such patients require the nursing home level of care and in accord with the program's utilization review plan and policies governing length of stay; and
2. (2) patients may be admitted to the swing bed program for respite care in accord with nursing home medical eligibility criteria for admission so as to provide temporary relief to primary care givers; and
3. (3) reimbursement for patients whose length of stay exceeds 60 days shall be in accordance with alternate level of care payments (ALC) as set forth by section 861.56 of this Title.