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

§ 2825-f. Health care facility transformation program: statewide III.

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: (a) create financially sustainable systems

of care; (b) preserve or expand essential health care services; (c)

modernize obsolete facility physical plants and infrastructure; (d)

foster participation in alternative payment arrangements including, but

not limited to, contracts with managed care plans and accountable care

organizations; (e) for residential health care facilities, increase the

quality of resident care or experience; or (f) improve health

information technology infrastructure, including telehealth, to

strengthen the acute, post-acute and long-term care continuum. 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 grants to general

hospitals, residential health care facilities, adult care facilities

licensed under title two of article seven of the social services law,

diagnostic and treatment centers and clinics licensed pursuant to this

chapter or the mental hygiene law, children's residential treatment

facilities licensed pursuant to article thirty-one of the mental hygiene

law, assisted living programs approved by the department pursuant to

section four hundred sixty-one-l of the social services law, and

community-based health care providers as defined in subdivision three of

this section for grants in support of 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. 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 twenty-five 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: (a) sixty 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; a substance use disorder treatment clinic licensed or

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

hygiene law; a primary care provider; a clinic licensed or granted an

operating certificate under article sixteen of the mental hygiene law; a

home care provider certified or licensed pursuant to article thirty-six

of this chapter; or hospices licensed or granted an operating

certificate pursuant to article forty of this chapter and (b) forty-five

million dollars of the total awarded funds shall be made to residential

health care facilities.

4. Notwithstanding any inconsistent subdivision of this section or any

other provision of law to the contrary, the commissioner, with the

approval of the director of the budget, may expend up to twenty million

dollars of the funds appropriated for this program pursuant to

subdivision three of this section, not including funds dedicated for

community-based health care providers under paragraph (a) of such

subdivision or for residential health care facilities under paragraph

(b) of such subdivision, for awards made pursuant to paragraph (l) of

subdivision three of section four hundred sixty-one-l of the social

services law, provided that funding shall be prioritized for awards made

pursuant to subparagraph (i) of such paragraph, with remaining funding

available for awards made pursuant to subparagraphs (ii) and (iii) of

such paragraph.

4-a. 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, subject to the

availability of lawful appropriation, 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 17648 issued by the department on January eighth,

two thousand eighteen pursuant to section twenty-eight hundred

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

subdivisions three and four of this section shall apply.

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

submitted in response to the request for application number 17648 shall

be awarded no later than September first, two thousand nineteen.

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

the commissioner shall consider 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) the 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 to which 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 and

assembly health committees, until such time as the department determines

that the projects that receive funding pursuant to this section are

substantially complete. 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 six of this section.