N.Y. Public Health Law § 2825-c: Essential health care provider support program

§ 2825-c. Essential health care provider support program. 1.

Notwithstanding section one hundred sixty-three of the state finance

law, or any inconsistent provision of law to the contrary, within

amounts appropriated, funds may be allocated and distributed by the

commissioner without a competitive bid or request for proposal process,

for grants to essential health care providers to support debt

retirement, capital projects or non-capital projects that facilitate

health care transformation, including mergers, consolidation, and

restructuring activities intended to create a financially sustainable

system of care. Grants shall not be available to support general

operating expenses. For purposes of this section, an essential health

care provider is a hospital or hospital system that, in the discretion

of the commissioner, offers health care services within a defined

geographic region where such services would otherwise be unavailable to

the population of such region.

2. The commissioner shall award grants for projects consistent with

the purposes of this section. Eligible applicants shall meet the

following criteria:

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

preceding years as evidenced by audited financial statements;

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

of the three preceding years as evidenced by audited financial

statements; and

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

consecutive preceding years; or

(b) be deemed by the commissioner to be a provider that fulfills or

will fulfill an unmet need for acute inpatient, outpatient, primary or

residential health care services in a defined geographic region where

such services would be otherwise unavailable to the population of such

region.

3. Such awards shall be distributed pursuant to criteria, including

but not limited to:

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

long term sustainability of the applicant or preservation of essential

health care services in a community;

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

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

and objectives;

(c) consideration of geographic distribution of funds;

(d) the relationship between the proposed project and an identified

community need;

(e) the extent to which the applicant has access to alternative

financing;

(f) the extent to which the proposed project furthers the development

of primary care;

(g) the extent to which the proposed project benefits Medicaid

enrollees and uninsured individuals;

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

affected by the proposed project and the manner in which the community

engagement has shaped such project; and

(i) the extent to which the proposed project addresses potential risk

to patient safety and welfare.

4. Disbursement of awards made pursuant to this section shall be

conditioned on the awardee achieving certain process and performance

metrics and milestones as determined in the sole discretion of the

commissioner. Such metrics and milestones shall be structured to ensure

that the health care transformation and provider sustainability goals of

the project are achieved, and such metrics and milestones shall be

included in grant disbursement agreements or other contractual documents

as required by the commissioner.

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 include, for

each award, the name of the applicant, a description of the project or

purpose, the amount of the award, disbursement date, and status of

achievement of process and performance metrics and milestones pursuant

to subdivision four of this section.