NY's court upholds nursing home fiscal restriction

ALBANY, N.Y. (AP) — New York's top court has upheld a state law restricting asset or equity withdrawals from nursing homes without prior approval from state health officials.

The Court of Appeals says the restriction on withdrawals exceeding 3 percent of a facility's most recently reported annual revenue from patient care isn't "so outrageously arbitrary" as to be unconstitutional.

The seven judges say preserving nursing home financial capacity to provide care is a proper concern of the state Legislature.

They unanimously overturned lower courts, which concluded the measure violated the rights of facility owners with positive net worth.

They also rejected arguments that the law gives Department of Health officials too much discretion to deny withdrawals.

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