N.Y. Public Health Law § 2815: Health facility restructuring program

§ 2815. Health facility restructuring program. 1. Definitions. As used

in this section, the following words and phrases shall have the

following meanings unless a different meaning is plainly required by the

context:

(a) "Agency" shall mean the New York state housing finance agency

created by article three of the private housing finance law.

(b) "Authority" shall mean the dormitory authority of the state of New

York created by title four of article eight of the public authorities

law which has succeeded to the powers, functions and duties of the

medical care facilities finance agency pursuant to chapter eighty-three

of the laws of nineteen hundred ninety-five.

(c) "Participating borrower" shall mean a not-for-profit general

hospital, a not-for-profit diagnostic center, a not-for-profit treatment

center, a not-for-profit residential health care facility or any other

not-for-profit entity in possession of a valid operating certificate

issued pursuant to this article, each organized under the laws of this

state, which has been approved for participation in this program by the

commissioner.

(d) "Restructuring pool" shall mean the health facility restructuring

pool authorized to be established by the authority pursuant to this

section.

2. The authority shall establish the restructuring pool. Funds shall

be transferred by the commissioner to the authority for deposit in the

restructuring pool as authorized pursuant to paragraph (d) of

subdivision one of section twenty-eight hundred seven-l and paragraph

(b) of subdivision nineteen of section twenty-eight hundred seven-c of

this article or any other provision of law. Funds in the restructuring

pool shall be held by the authority pursuant to this section as

custodian, administered by the authority pursuant to an agreement with

the commissioner and invested by the authority in accordance with the

investment guidelines of the authority. All investment income shall be

credited to, and any repayments of loans as hereinafter provided shall

be deposited in, the restructuring pool, and spent therefrom only for

the purposes set forth in this section.

3. The commissioner, the authority and the agency shall enter into an

agreement, subject to the approval of the director of the budget, for

the purpose of administering the funds in the restructuring pool in a

manner that will benefit the public health by encouraging improvements

in the health care delivery system in the state. A copy of such

agreement, and any amendment thereto, shall be provided to the chair of

the senate finance committee, the director of the division of budget,

and the chair of the assembly ways and means committee. Such agreement

shall include, but not be limited to, the following provisions:

(a) for the receipt, management and expenditure of funds held in the

restructuring pool by the authority;

(b) for the development and implementation of business plans for

participating borrowers, addressing the development of service delivery

strategies, including strategies for the formation or strengthening of

networks, affiliations or other business combinations, designed to

provide long-term financial stability within and among participating

borrowers;

(c) for the expenditure or loan of funds by the authority from the

restructuring pool to reimburse the authority or the agency, where

appropriate, for the costs of engaging management, legal or accounting

consultants to identify, develop and implement improved strategies for

one or more participating borrowers for implementing the recommendations

of such consultants, where appropriate, and for the payment of debt

service on bonds, notes or other obligations issued or incurred by the

authority or the agency to fund loans to one or more participating

borrowers;

(d) for assurances that participating borrowers will address the

recommendations of such consultants and furnish the commissioner, the

authority, and where applicable, the agency, with such additional

financial, management, legal and operational information as each may

deem necessary to monitor the performance of a participating borrower;

and

(e) for the agency to obtain funds from the restructuring pool to be

used for the purposes set forth in this section.

3-a. Any participating borrower may apply for restructuring pool funds

to the extent such funds are derived from deposits made pursuant to

paragraph (d) of subdivision one of section twenty-eight hundred seven-l

of this article, provided, however, that, in reviewing such

applications, the commissioner and the authority shall consider the

extent to which the applicant hospital has alternative available sources

of funds, including, but not limited to, funds available through

affiliation agreements with other hospitals or entities.

4. To the extent funds are available from a participating borrower

therefor, expenditures from the restructuring pool shall be repaid to

the restructuring pool from repayments received by the authority, or the

agency where applicable, from a participating borrower pursuant to the

terms of any financing agreement, mortgage or loan document permitting

the recovery from the participating borrower of such expenditures. The

authority shall record and account for all such payments, which shall be

deposited in the restructuring pool.

5. Loans from the restructuring pool shall be made pursuant to an

agreement with the participating borrower specifying the terms thereof,

including repayment terms. The authority shall record and account for

all such repayments, which shall be deposited in the restructuring pool.

The authority shall notify the chair of the senate finance committee,

the director of the division of budget, the chair of the assembly ways

and means committee, the chair of the senate committee on health, and

the chair of the assembly health committee, five days prior to the

making of a loan from the restructuring pool. The authority shall also

report quarterly to such chairpersons on the transactions in the pool,

including but not limited to receipts or deposits to the pool,

disbursements or loans made from the pool, investment income, and the

balance on hand as of the end of the month for each such quarter.

5-a. Notwithstanding anything in this section to the contrary, the

authority is authorized and directed to transfer from the restructuring

pool to the department, upon written request of the director of the

budget and within thirty days thereof, funds repaid by participating

borrowers, and held by the authority relating to restructuring pool

loans funded by amounts transferred to the restructuring pool by the

department or remaining funds in the restructuring pool that were

transferred by the department, not to exceed a total of eighty-three

million five hundred thousand dollars, excepting therefrom amounts

necessary to pay expenses of the authority as provided in the agreement

described in subdivision three of this section. All participating

borrowers shall be obligated in their loan agreement to repay no later

than March thirty-first, two thousand twenty all funds borrowed from the

eighty-three million five hundred thousand dollars transferred by the

department pursuant to this section, to fund these restructuring pool

loans. Further, in respect of these borrowed funds, all participating

borrowers shall be required under the terms of their loan agreement to

immediately upon receipt of quality improvement incentive payments or

additional supplemental assistance initiate repayment of an amount equal

to the quality improvement incentive payments or additional supplemental

assistance not to exceed the amount of such borrowed funds, unless a

waiver or extension of repayment has been approved by the director of

the budget.

6. The commissioner is authorized, with the assistance and cooperation

of the authority, to provide a program of technical assistance to

participating borrowers.