N.Y. Comp. Codes R. & Regs. tit. 18, § 505.20
(a) Patients who no longer need hospital or skilled nursing facility care shall be discharged promptly and, for hospital patients, shall be discharged in accordance with the Department of Health's hospital discharge planning requirements contained in section 405.22(j) of Title 10 NYCRR.
(2) As soon as the patient's physician has indicated need for alternate medical care placement and the anticipated date the patient will be ready for discharge to such care, the hospital or skilled nursing facility shall inform the social services district, if required by such district, and other agencies that can most appropriately be expected to arrange for the provision of alternate care services, of the patient's medical needs that must be satisfied in accordance with the physician's recommendations. Failure by the hospital or skilled nursing facility to notify the local district, if required by such district, or other appropriate agencies prior to or within 24 hours of the patient's assignment to alternate care status shall result in denial of payment for care rendered on or after that date. Verbal notification by the hospital or skilled nursing facility shall be promptly confirmed in writing to the local district, if required by the district.
(iii) Except as otherwise provided in this subparagraph, the hospital or skilled nursing facility shall have admission documentation for each patient awaiting placement on file with at least five facilities in its discharge community. A skilled nursing facility may restrict the number of facilities having a patient's admission documentation on file to fewer than five under the conditions set forth in 10 NYCRR Part 85 governing continuing stay reviews in residential health care facilities. A hospital may restrict the number of facilities having a patient's admission documentation on file to one facility when there are other hospital patients receiving medical assistance and awaiting alternate care placement; and
(iv) The local social services district may direct that a hospitalized patient be placed outside the referring hospital's discharge community when the hospital has been unsuccessful in locating an alternate level of care bed within its discharge community within 60 days of the day the patient was placed in alternate care status. A decision to seek such placement shall be made only when the patient's local professional medical director:
(3)
(5) No payment for hospital or skilled nursing facility care for an eligible person pending alternate medical care placement shall be made if:
(b) Facility responsibility.