State regulators recognize the importance of uninterrupted power to health-care facilities by requiring them to have on-site backup power. For example, the New York State Department of Health requires each hospital and nursing facility to have an established plan of emergency electric service in the event of an electrical system failure. It also requires compliance with the 1996-1997 Guidelines for Design and Construction of Hospital and Health Care Facilities. Hospitals and nursing facilities typically satisfy these requirements by having on-site backup generation interconnected to the utility system or separated by a transfer switch that will switch to and activate on-site power upon the loss of utility power. These units are required to be tested periodically.
If a health-care facility in New York loses power and fails to meet its legal requirements to have backup power or is negligent in carrying out its emergency plan, the owner and operator are subject to possible administrative penalties and fines, and possible loss of an operating license in the event of casualty or death. The owner or operator may also be subject to lawsuits as well as loss of reputation.