N.Y. Comp. Codes R. & Regs. tit. 9 § 3.2
When public funds are channeled through private hands to finance health and residential services, government must insure that those funds are used honestly and efficiently in the promotion of the public welfare. The compassionate purpose of programs of residential and health care must not be subverted by the improper diversion of public funds for private benefit, nor through the inability of government to control the use of such funds under present regulatory structures.
A serious public concern has been expressed as to the quality of care provided by nursing homes and residential facilities sheltering the aged, the disabled, the mentally ill and retarded, receiving public financial assistance and subject to supervision by State agencies, but owned by private interests.
State government is deeply involved in the supervision of such facilities, but the public has lost confidence in the methods through which government finances these facilities, and in the government's ability to assure the efficient delivery of health and related services.
It is necessary, therefore, that there be an official inquiry into the mechanisms of State and Federal funding, particularly reimbursement under the Medicaid system. Current methods of funding must be evaluated to determine if they contribute to exploitation of the poor, aged, and infirm and to profiteering in public funds.
In addition, the State regulatory structure must be evaluated to insure that nursing homes and homes which shelter the aged and disabled provide the highest quality of care with the greatest degree of economy.
This inquiry must also look into the ownership, financing and control of nursing homes and residential facilities and must thoroughly examine any allegations of improper conduct by publicly elected officials or members of their staffs with respect to the operation of State agencies charged with the responsibility of regulating these institutions.
Now, therefore, I, Hugh L. Carey, pursuant to Section Six of the Executive Law, have appointed and by these present do appoint Morris B. Abram as Commissioner to study, examine, investigate, review and make recommendations with respect to the management and affairs of any department, board, bureau, or commission of the State exercising any direction, supervision, visitation, inspection, funding or control of any nongovernmental nursing home, residential facility or home which provides health, residential or allied services, and which receives any Federal, State or local financial assistance or payment, directly or indirectly, or which provides care or services to any individual who receives such assistance or payment.
The Commissioner is hereby empowered to subpoena and enforce the attendance of witnesses, to administer oaths and examine witnesses under oath and to require the production of any books, records or papers deemed relevant or material and I hereby give and grant to the Commissioner the powers and authorities which may be given or granted to persons appointed by me for such purpose under authority of Section Six of the Executive Law.
Every State department, division, board, bureau, commission, council and agency shall provide to the Commissioner every assistance, facility and cooperation which may be proper or desirable for the accomplishment of the purposes for which the Commissioner is hereby appointed.
Signed: Hugh L. Carey
Dated: January 10, 1975
Executive Order No. 2.1
Pursuant to Section Six of the Executive Law, I hereby appoint Peter A.A. Berle, Isadore Rossman, Dorothy B. Wadsworth, and Aminda Wilkins, as Commissioners, to join with Morris B. Abram, previously appointed as Commissioner by Executive Order No. 2, dated January 10, 1975, generally to study, examine, investigate, review and make recommendations with respect to the management and affairs of any department, board, bureau or commission of the State exercising any direction, supervision, visitation, inspection, funding or control of any nongovernmental nursing home, residential facility or home which provides health, residential or allied services, and which receives any Federal, State or local financial assistance or payment, directly or indirectly, or which provides care or services to any individual who receives such assistance or payment.
Morris B. Abram is hereby designated Chairman, and the Commissioners are hereby empowered to subpoena and enforce the attendance of witnesses, to administer oaths and examine witnesses under oath and to require the production of any books, records or papers deemed relevant or material and I hereby give and grant to the Commissioners all and singular powers and authorities which may be given or granted to persons appointed by me for such purpose under authority of section six of the Executive Law.
Every State department, division, board, bureau, commission, council and agency shall provide to the Commissioners every assistance, facility and cooperation which may be proper or desirable for the accomplishment of the purposes for which the Commissioners have been appointed.
N.Y. Comp. Codes R. & Regs. Tit. 9 § 3.2