1199SEIU Applauds Court’s Decision Upholding Law Requiring Nursing Homes to Spend 70% of Revenue on Patient Care

July 2, 2024

On June 20, the New York Appellate Division,Third Judicial Department rejected the nursing home industry’s attempt to overturn the law requiring nursing homes to spend 70% of their total revenue on resident care and 40% of revenue on front-line staff. The vast majority of nursing home revenue comes from taxpayer funds through Medicaid and Medicare.

1199SEIU members fought hard for the law’s passage and we applaud the court’s decision to stand up for workers and residents. When the law was passed, New York joined New Jersey and Massachusetts in requiring nursing homes to spend most of their revenue on resident care and the staff who do the hands-on work. It has been recognized by advocates across the country as an example of legislation that could support high quality nursing home care.

“Hopefully the court’s decision ends the nursing home industry’s attempts to overturn the law. Providers need to focus on how to comply with the law by spending more of their revenue on taking care of residents and improving wages and benefits for workers,” Daine Williams, Executive Vice President, Nursing Home Division, 1199SEIU.