DOH Repeals EO-38 Limits on Administrative Expenses and Executive Compensation

Based on a Department of Health (DOH) notice in last week's State Register, DOH-funded entities are no longer subject to limits on administrative expenses or executive compensation previously imposed by Executive Order 38 (EO-38). The notice repealed the DOH regulations implementing EO-38, which had limited State-funded administrative spending and executive compensation and required annual disclosures.

Governor Hochul decided not to renew this Cuomo-era EO in October 2021, when she issued her own EO-6 continuing selected orders of the prior governors. Hochul's EO-6 did not continue EO-38. However, as LeadingAge NY reported in last week's Intelligence, the status of the spending limits and the disclosures was unclear while the DOH regulations were still in effect. DOH had informally confirmed last month that providers would not be required to file EO-38 disclosures this year, but the ongoing fate of the caps and disclosures remained unclear until the regulations were repealed. As a result of the repeal of the regulations, providers are no longer subject to the EO-38 limits on executive compensation and are no longer required to submit EO-38 disclosures. This repeal does not affect the direct care spending (70/40) requirements imposed on nursing homes, which remain in effect.

Contact: Karen Lipson, klipson@leadingageny.org, or Darius Kirstein, dkirstein@leadingageny.org