October 6, 2025
The Office of Addiction Services and Supports (OASAS) announces an update to previous guidance related to the availability of funding to assist existing OASAS-certified providers in the transition to Part 820 Residential Services.
Effective February 28, 2026, Part 819 Substance Use Disorder Residential Services will no longer be in effect. Providers that intend to continue providing residential services will need to obtain operating certificates under other applicable regulations, such as 14 NYCRR Part 820 Residential Services, on or before February 28, 2026.
With the sunset of Part 819, funding to assist in the conversion of existing residential services to Part 820 will also sunset. All requests for conversion funding must be submitted to OASAS no later than April 30, 2026.
OASAS will fund, through the Department of Health, a one-time payment of up to $205,000, per newly converted Part 820 program/PRU. Funding can be used for any allowable expense in support of the converting program, in accordance with the Consolidated Fiscal Reporting Manual (CFR).
This funding will be made available after OASAS Regional Office has approved a site-specific Part 820 Conversion Plan or a revised staffing plan for existing Part 820-Reintegration only programs. OASAS’ Division of Fiscal Administration will process a payment request to the Department of Health (DOH) Division of Health Care Financing (HCF). HCF will obtain approval from the Division of the Budget and upon approval, process a payment via the provider’s NYS Medicaid Management Information System (MMIS).
For MMIS to process the payment, the provider must have a NYS MMIS number. If the provider operates any OASAS program that receives Medicaid, the MMIS number of the Medicaid-eligible program can be used for processing the approved conversion funding request. The provider must then adjust their General Ledger to reflect the payment being made for the new Part 820 program. If the provider does not have a NYS MMIS number or does not otherwise receive Medicaid funding, the provider will need to enroll in the NYS Medicaid Program and receive a NYS MMIS number prior to requesting conversion funding.
Funds are subject to available appropriations and are only available once per program/PRU regardless of future element changes. Programs continue to be subject to all reporting and performance monitoring. OASAS reserves the right to discontinue this process without notice.
Any questions should be directed to the PICM mailbox at [email protected].