N.Y. PBH Law § 406

§ 406. Hospitals; refunds, waivers and compromises of bills. 1.\nMoneys heretofore or hereafter received by the department for the\naccounts of any of the hospitals or institutions of the department may\nbe refunded to the person or party for whose account same were received,\nand within six years thereafter upon satisfactory proof being submitted\nto the commissioner that:\n a. such moneys were in excess of the charges imposed upon or incurred\nby the party, pursuant to law; or,\n b. such moneys were received as reimbursement for care, maintenance\nand treatment of patients, and such care, maintenance and treatment has\nnot been rendered or furnished; or,\n c. such moneys were received from the funds of patients not available\nfor payment for the care, maintenance and treatment of patients.\n 2. Notwithstanding the provisions of section one hundred twenty-one of\nthe state finance law, such refunds shall, upon approval by the\ncommissioner and after audit by the comptroller, be paid from any moneys\nin the custody of the department received as reimbursement for the care,\nmaintenance and treatment of patients in the several hospitals in the\ndepartment.\n 3. The commissioner may in his discretion, in proper cases, where\nsubstantial justice will best be served thereby, waive bills for the\nmaintenance, care and treatment received or furnished to patients in any\nof the hospitals or institutions of the department or compromise any\nportion of such bills. Such waiver or compromise shall be made only upon\nprior approval of the comptroller and the attorney general when they\ndeem it to be for the best interest of the state.\n