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

§ 2825-e. Health care facility transformation program: statewide II.

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 funding in support of

capital projects, debt retirement, working capital or other non-capital

projects that facilitate health care transformation activities

including, but not limited to, merger, consolidation, acquisition or

other activities intended to create financially sustainable systems of

care or preserve or expand essential health care services. Grants shall

not be available to support general operating expenses. 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 dormitory 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 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, and community-based health care providers as defined

in subdivision three of this section for 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 the 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 new applications for projects

not funded under section twenty-eight hundred twenty-five-d 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

five hundred million dollars of the funds appropriated for this program

shall be awarded without a competitive bid or request for proposal

process for grants to health care providers (hereafter "applicants").

Provided, however, that a minimum of seventy-five 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; a primary care provider or a home care provider certified

or licensed pursuant to article thirty-six of this chapter; or other

purposes and community-based providers designated by the commissioner

pursuant to information obtained pursuant to subdivision four-a of this

section. 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. Notwithstanding subdivision two of this section or any inconsistent

provision of law to the contrary, and upon approval of the director of

the budget, the commissioner may award up to three hundred million

dollars of the funds made available pursuant to this section for

unfunded project applications submitted in response to the request for

applications number 1607010255 issued by the department on July

twentieth, two thousand sixteen pursuant to section twenty-eight hundred

twenty-five-d of this article, provided however that the provisions of

subdivision three of this section shall apply.

4-a. Authorized amounts to be awarded pursuant to applications

submitted in response to the request for application number 1607010255

shall be awarded no later than May first, two thousand seventeen. The

commissioner shall not issue a request for application for the remaining

appropriated amounts on or before June first, two thousand seventeen to

allow stakeholder, community, and legislative input regarding program

eligibility, award criteria and the process by which the remaining funds

will be awarded.

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

the commissioner shall consider stakeholder, community, and legislative

input pursuant to subdivision four-a of this section, and other criteria

including, but not limited to:

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

integration of health care services or 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) Consideration of geographic distribution of funds;

(d) The relationship between the proposed project and identified

community need;

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

financing;

(f) The extent that the proposed project furthers the development of

primary care and other outpatient services;

(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 community

engagement has shaped such project; and

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

to patient safety and welfare.

6. 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 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.

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

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