LHCSA RFO Scheduled for Implementation on May 1, 2022 Is your Agency Ready for the RFO?

Recently, the New York State Department of Health published its FY 2023 “Medicaid Scorecard” that outlines various Medicaid-related initiatives for the upcoming year. Of interest to home care providers, the Scorecard was updated to state that the LHCSA RFO “re-estimate[d]” “Implementation date” will be May 1, 2022. There was no explanation of what this practically means. It is impossible for the State to issue a Request for Offers from interested LHCSA applicants, collect responses, and evaluate them all in time to implement the RFO by May 1, 2022. Thus, this May 1, 2022, might be a target date by which the State intends to issue the actual requests for proposals. We’ve been hearing for months that the actual RFO application for LHCSA is done and under legal review. The State has been steadfast that the RFO will be issued, eventually. However, if the CDPAP RFO is any indication, it will be years before the LHCSA RFO is actually implemented.

Nonetheless, the LHCSA RFO is unlikely to be repealed in this year’s budget bill. And the Executive’s proposal for MLTC RFOs evidences the State’s interest in consolidating the home care market, among providers and payors. Thus, with no immediate repeal of the LHCSA RFO in sight, LHCSA providers will have to go through the process of responding to the request for proposals.

As a reminder, per the State’s law, all LHCSA RFO responses will have to address the following categories:

  1. Licensure under Article 36 (which appears to mean that entities that wish to be licensed but that are not licensed cannot apply);
  2. The ability to appropriately serve Medicaid recipients, “as determined by the Commissioner;”
  3. Geographic distribution of LHCSAs to ensure access statewide, including in rural and underserved areas;
  4. Demonstrated cultural and language competencies specific to the population of recipients and those of the available workforce;
  5. Ability to provide timely assistance to recipients;
  6. Experience serving individuals with disabilities;
  7. Efficient and economic administration of LHCSA services; and
  8. Demonstrated compliance with all applicable federal and state laws and regulations, including wage and labor standards, compliance with EEO and anti-discrimination laws.

If you have any questions about the LHCSA RFO or wish to discuss preparation for the RFO, please do not hesitate to reach out to our firm.