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New York · Through 2026-09-11

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

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Where this section sits in the code
  1. Public Health Law
  2. Article 28. Hospitals

§ 2825-g. Health care facility transformation program: statewide IV.

1. A statewide health care facility transformation program is hereby

established within the department for the purpose of transforming,

redesigning, and strengthening quality health care services in alignment

with statewide and regional health care needs, and in the ongoing

pandemic response. The program shall also provide funding, subject to

lawful appropriation, in support of capital projects, debt retirement,

working capital or other non-capital projects that facilitate furthering

such transformational goals.

2. The commissioner shall enter into an agreement with the president

of the dormitory authority of the state of New York pursuant to section

sixteen hundred eighty-r of the public authorities law, which shall

apply to this agreement, subject to the approval of the director of the

division of the budget, for the purposes of the distribution and

administration of available funds pursuant to such agreement, and made

available pursuant to this section and appropriation. Such funds may be

awarded and distributed by the department for grants to health care

providers including but not limited to, hospitals, residential health

care facilities, adult care facilities licensed under title two of

article seven of the social services law, diagnostic and treatment

centers licensed or granted an operating certificate under this chapter,

clinics, including but not limited to those licensed or granted an

operating certificate under this chapter or the mental hygiene law,

children's residential treatment facilities licensed under 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, behavioral health facilities licensed or granted an

operating certificate pursuant to articles thirty-one and thirty-two of

the mental hygiene law, home care providers certified or licensed under

article thirty-six of this chapter, primary care providers, hospices

licensed or granted an operating certificate pursuant to article forty

of this chapter, community-based programs funded under the office of

mental health, the office of addiction services and supports, the office

for people with developmental disabilities, or through local

governmental units as defined under article forty-one of the mental

hygiene law, independent practice associations or organizations, and

residential facilities or day program facilities licensed or granted an

operating certificate under article sixteen of the mental hygiene law. A

copy of such agreement, and any amendments thereto, shall be provided by

the department 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 after such agreement is

finalized. 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 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 four hundred fifty million dollars of the

funds made available pursuant to this section for unfunded project

applications submitted in response to the request for application number

18406 issued by the department on September thirtieth, two thousand

twenty-one pursuant to section twenty-eight hundred twenty-five-f of

this article. Authorized amounts to be awarded pursuant to applications

submitted in response to the request for application number 18406 shall

be awarded no later than February twenty-eighth, two thousand

twenty-three. Provided, however, that a minimum of:

(a) twenty-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 diagnostic and treatment centers licensed or

granted an operating certificate under this chapter; independent

practice associations or organizations; home care providers certified or

licensed pursuant to article thirty-six of this chapter; and hospices

licensed or granted an operating certificate pursuant to article forty

of this chapter;

(b) twenty-five million dollars of total awarded funds shall be made

to a mental health clinic licensed or granted an operating certificate

under article thirty-one of the mental hygiene law; alcohol and

substance use disorder treatment clinics licensed or granted an

operating certificate under article thirty-two of the mental hygiene

law; clinics licensed or granted an operating certificate under article

sixteen of the mental hygiene law; and community-based programs funded

under the office of mental health or the office of addiction services

and supports or through local governmental units as defined under

article forty-one of the mental hygiene law; and

(c) fifty million dollars of total awarded funds shall be made to

residential health care facilities or adult care facilities licensed

under title two of article seven of the social services law.

4. Notwithstanding sections one hundred twelve and one hundred

sixty-three of the state finance law, sections one hundred forty-two and

one hundred forty-three of the economic development 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 grants to

health care providers for purposes of modernization of an emergency

department of regional significance. For purposes of this subdivision,

an emergency department shall be considered to have regional

significance if it: (a) serves as Level 1 trauma center with the highest

volume in its region; (b) includes the capacity to segregate patients

with communicable diseases, trauma or severe behavioral health issues

from other patients in the emergency department; (c) provides training

in emergency care and trauma care to residents from multiple hospitals

in the region; and (d) serves a high proportion of Medicaid patients.

5. (a) Notwithstanding sections one hundred twelve and one hundred

sixty-three of the state finance law, sections one hundred forty-two and

one hundred forty-three of the economic development law, or any

inconsistent provision of law to the contrary, up to seven hundred fifty

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, as defined in subdivision two of this

section.

(b) Awards made pursuant to this subdivision shall provide funding for

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

projects to the extent lawful appropriation and funding is available, to

build innovative, patient-centered models of care, increase access to

care, to improve the quality of care and to ensure financial

sustainability of health care providers.

(c) Provided, however, that a minimum of:

(i) twenty-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 diagnostic and treatment centers licensed or

granted an operating certificate pursuant to this chapter; independent

practice associations or organizations; home care providers certified or

licensed pursuant to article thirty-six of this chapter; and hospices

licensed or granted an operating certificate pursuant to article forty

of this chapter;

(ii) twenty-five million dollars of total awarded funds shall be made

to a mental health clinic licensed or granted an operating certificate

under article thirty-one of the mental hygiene law; alcohol and

substance use disorder treatment clinics licensed or granted an

operating certificate under article thirty-two of the mental hygiene

law; clinics licensed or granted an operating certificate under article

sixteen of the mental hygiene law; and community-based programs funded

under the office of mental health or the office of addiction services

and supports or through local governmental units as defined under

article forty-one of the mental hygiene law; and

(iii) twenty-five million dollars of total awarded funds shall be made

to residential health care facilities or adult care facilities licensed

under title two of article seven of the social services law.

6. Notwithstanding sections one hundred twelve and one hundred

sixty-three of the state finance law, sections one hundred forty-two and

one hundred forty-three of the economic development law, or any

inconsistent provision of law to the contrary, up to one hundred fifty

million dollars of the funds appropriated for this program shall be

awarded, without a competitive bid or request for proposal process, for

technological and telehealth transformation projects.

7. Notwithstanding sections one hundred twelve and one hundred

sixty-three of the state finance law, sections one hundred forty-two and

one hundred forty-three of the economic development law, or any

inconsistent provision of law to the contrary, up to fifty million

dollars of the funds appropriated for this program shall be awarded,

without a competitive bid or a request for proposal process, to

residential and community-based alternatives to the traditional model of

nursing home care.

8. Selection of awards made by the department pursuant to subdivisions

three, four, five, six and seven of this section shall be contingent on

an evaluation process acceptable to the commissioner and approved by the

director of the division of the budget. Disbursement of awards may be

contingent on the health care provider as defined in subdivision two of

this section achieving certain process and performance metrics and

milestones that are structured to ensure that the goals of the project

are achieved.

9. 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 health care provider as defined in subdivision

two of this section, 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.

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