By legislation enacted last month, on June 9, 2021, amending the New York Finance Law, Mental Hygiene Law and Executive Law, New York State established an opioid settlement fund (“OSF”). Finance Law §99-nn(1). The purpose of the OSF and the OSF advisory board created by the statute is to ensure that all opioid settlement monies are dedicated to the prevention and treatment of substance use disorders, and the recovery of substance use victims. OSF will include money paid to NYS as the result of (i) the settlement or other resolution of litigation against manufacturers, distributors, dispensers or promoters of opioids on claims arising from the manufacture, distribution, dispensing or promotion of opioids and (ii) any judgment, decree or other resolution of claims against those and “related” entities “arising out of activities alleged to have contributed to increases in opioid addiction.” Finance Law, §99-nn(4). OSF monies will include the proceeds of these claims, whether the claims were filed or unfiled, actual or potential, legal or equitable. Id.
The NYS Comptroller and NYS Commissioner of Taxation will be joint custodians of the OSF. OSF monies are required to be segregated and not commingled with any other funds held by the Comptroller. Finance Law §99-nn(2). OSF expenditures “shall be used to supplement and not to supplant or replace” any other federal or NYS funds which would other otherwise be used for substance use prevention, treatment, recovery and harm reduction services. Finance Law §99-nn(3). The law specifies that general operating funds or baseline funding for substance use prevention, treatment and recovery will not be reduced due to amounts expended from OSF. Id. All amounts received by the OSF will remain there “unless and until directed by statute or appropriation.” Finance Law, §99-nn(4). Funding must be disbursed to provide adequate geographic distribution across NYS. In addition to programs administered by the Office of Addiction Services and Supports (OASAS), OSF dollars may be used for programs of NYS agencies other than OASAS which oversee programs and services that are considered eligible OSF expenditures. §99-nn(5). Local governments and school districts may apply for OSF funding to the appropriate NYS agency. Mental Hygiene Law, §25.18(b).
Continue Reading New York Establishes an Opioid Settlement Fund
On June 11, the New York Court of Appeals, in Andrew Carothers, M.D., P.C. v. Progressive Insurance Company, 2019 NY Slip Op 04643, decided that an insurer may withhold payment for services provided by a medical services corporation improperly controlled by non-physicians whether or not the medical services corporation acted fraudulently or with fraudulent intent.
Section 351 of the Bankruptcy Code permits a health care business in bankruptcy to dispose of patient records if it lacks sufficient funds to pay to store the records in accord with applicable state or federal law. Although section 351 was enacted in 2005, the provision appears to be little used. That’s because the procedures required before patient records may
