N.Y. Public Health Law § 2825-a: Health care facility transformation program: Kings county project

§ 2825-a. Health care facility transformation program: Kings county

project. 1. A Kings county health care facility transformation program

is hereby established under the joint administration of the commissioner

and the president of the dormitory authority of the state of New York

for the purpose of strengthening and protecting continued access to

health care services in communities. The program shall provide capital

funding in support of projects that replace inefficient and outdated

facilities as part of a merger, consolidation, acquisition or other

significant corporate restructuring activity intended to create a

financially sustainable system of care. The issuance of any bonds or

notes hereunder shall be subject to the approval of the director of the

division of the budget, and any projects funded through the issuance of

bonds or notes hereunder shall be approved by the New York state public

authorities control board, as required under section fifty-one of the

public authorities law.

2. The commissioner and the president of the authority shall enter

into an agreement, subject to approval by the director of the budget,

and subject to section sixteen hundred eighty-r of the public

authorities law, for the purposes of awarding, distributing, and

administering the funds made available pursuant to this section. Such

funds may be distributed by the commissioner and the president of the

authority for capital grants to general hospitals, residential health

care facilities, diagnostic and treatment centers, primary care

providers, and home care providers, certified or licensed pursuant to

article thirty-six of this chapter, for capital non-operational works or

purposes that support the purposes set forth in this section. A copy of

such agreement, and any amendments thereto, shall be provided to the

chair of the senate finance committee, the chair of the assembly ways

and means committee, and the director of the division of budget no later

than thirty days prior to the release of a request for applications for

funding under this program. Projects awarded under section twenty-eight

hundred twenty-five of this article shall not be eligible for grants or

awards made available under this section.

3. Notwithstanding section one hundred sixty-three of the state

finance law or any inconsistent provision of law to the contrary, up to

seven hundred million dollars of the funds appropriated for this program

shall be awarded without a competitive bid or request for proposal

process for capital grants to health care providers (hereafter

"applicants") located in the county of Kings.

(a) Eligible applicants shall serve communities whose residents are

experiencing significant levels of health care disparities and health

care needs compared to other communities within the county of Kings as

evidenced by:

(i) a high number of Medicaid enrollees and uninsured individuals;

(ii) elevated blood lead level rates among children, high rates of

diabetes, high blood pressure, asthma, obesity, infant death or

premature birth, heart failure, behavioral health conditions, substance

abuse;

(iii) low levels of income, high rates of unemployment, distressed

housing conditions, and poor nutritional status;

(iv) other risk factors as determined by the commissioner and the

president of the authority; and

(b) Such eligible applicant shall:

(i) (A) have a loss from operations for each of the three consecutive

preceding years as evidenced by audited financial statements;

(B) have a negative fund balance or negative equity position in each

of the three preceding years as evidenced by audited financial

statements; and

(C) have a current ratio of less than 1:1 for each of three

consecutive preceding years; or

(ii) be deemed by the commissioner and president of the authority to

be a provider that fulfills or will fulfill an unmet health care need

for acute inpatient, outpatient, primary or residential health care

services in a community.

4. In determining awards for eligible applicants under this section,

the commissioner and the president of the authority shall consider

criteria including, but not limited to:

(a) the extent to which the proposed capital project will contribute

to the long term sustainability of the applicant or preservation of

essential health services in the community or communities served by the

applicant;

(b) the extent to which the proposed project or purpose is aligned

with delivery system reform incentive payment ("DSRIP") program goals

and objectives;

(c) the relationship between the proposed capital project and

identified community need;

(d) the extent that the proposed capital project furthers the

development of primary care and other outpatient services;

(e) the extent to which the proposed capital project benefits Medicaid

enrollees and uninsured individuals;

(f) the extent to which the applicant has engaged the community

affected by the proposed capital project and the manner in which

community engagement has shaped such capital project; and

(g) the extent to which the proposed capital project addresses

potential risk to patient safety and welfare.

5. The department shall provide a report on a quarterly basis to the

chairs of the senate finance, assembly ways and means, senate health and

assembly health committees. Such reports shall be submitted no later

than sixty days after the close of the quarter, and shall conform to the

reporting requirements of subdivision twenty of section twenty-eight

hundred seven of this article, as applicable.