N.Y. Public Health Law § 2825-d: Health care facility transformation program: statewide

§ 2825-d. Health care facility transformation program: statewide. 1. A

statewide 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support of projects that replace inefficient and outdated facilities as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 that is part of an overall

transformation plan intended to create a financially sustainable system

of care. The issuance of any bonds or notes hereunder shall be subject

to section sixteen hundred eighty-r of the public authorities law and

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 and clinics licensed

pursuant to this chapter or the mental hygiene law, 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. Priority shall

be given to projects not funded, in whole or in part, under section

twenty-eight hundred twenty-five or twenty-eight hundred twenty-five-c

of this article. Projects awarded, in whole or part, under sections

twenty-eight hundred twenty-five-a and twenty-eight hundred

twenty-five-b 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

two 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"). Provided however that a minimum of thirty million

dollars of total awarded funds shall be made to community-based health

care providers, which, for purposes of this section shall be defined as

a diagnostic and treatment center licensed or granted an operating

certificate under this article; a mental health clinic licensed or

granted an operating certificate under article thirty-one of the mental

hygiene law; an alcohol and substance abuse treatment clinic licensed or

granted an operating certificate under article thirty-two of the mental

hygiene law; primary care providers; or a home care provider certified

or licensed pursuant to article thirty-six of this chapter. Eligible

applicants shall be those deemed by the commissioner to be a provider

that fulfills or will fulfill a health care need for acute inpatient,

outpatient, primary, home care 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 integration of health care services and 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) consideration of geographic distribution of funds;

(d) the relationship between the proposed capital project and

identified community need;

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

financing;

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

development of primary care and other outpatient services;

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

enrollees and uninsured individuals;

(h) 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

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

potential risk to patient safety and welfare.

5. 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.

6. 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 five of this section.