NY Pub Health L § 2818 (2021)
2021 New York Laws PBH - Public Health Article 28 - Hospitals 2818 - Health Care Efficiency and Affordability Law of New Yorkers (Heal Ny) Capital Grant Program.

§  2818.  Health  care efficiency and affordability law of New Yorkers (HEAL NY) capital grant program. 1. The commissioner and the director of the dormitory authority of the state of New York  shall  enter  into  an agreement,  subject  to  the approval of the director of the budget, for the purpose of administering the funds  available  to  the  health  care efficiency and affordability law for New Yorkers (HEAL NY) capital grant program  as  authorized  under  section  sixteen hundred eighty-j of the public authorities law, in a manner that will encourage improvements  in the  operation  and efficiency of the health care delivery system within the state. A copy of such agreement, and any amendments  thereto,  shall be  provided  to the chair of the senate finance committee, the director of the division of budget and the chair of the assembly ways  and  means committee.   Such  agreement  shall  include  criteria,  to  be  developed  by  the commissioner and the director of the  authority,  to  be  considered  in their evaluation of applications and determination of awards, including, but not limited to:  (a)  determination of eligible applicants, provided that such eligible applicants shall include entities representative  of  any  part  of  the health care delivery system;  (b) consideration of statewide geographic distribution of funds;  (c)  minimum  and  maximum  amounts of funding to be awarded under the program;  (d) the relationship between the project proposed by an applicant  and identified community need; and  (e)  the  extent  to  which  the  applicant  has access to alternative financing.   Such agreement shall be provided to the chair of  the  senate  finance committee,  the  director of the division of budget and the chair of the assembly ways and means committee no later than thirty days prior to the scheduled approval of the first bond issuance for  the  program  by  the public  authorities  control  board.  The  authority  shall  also report quarterly to such chairpersons on the awards made through  the  program, including  the  name  of the applicant, a description of the project and the amount of the award.   The commissioner and the director of the authority shall award  grants to  eligible  applicants  after due public notice of the availability of funds and  through  a  process  which  ensures  to  the  maximum  extent practicable  and  where  appropriate, competition among such applicants, consistent with the following requirements:  the  commissioner  and  the director  of  the  authority shall publish the priorities and goals that are to be achieved through grant funding, and regularly  provide  public notice  of the availability of funding. These priorities and goals shall be consistent with objectives and determinations of  the  Commission  on Health  Care facilities in the Twenty-First Century established pursuant to a chapter of the laws of two thousand five, provided,  however,  that nothing  shall  prohibit  the  commissioner  and  the  director  for the authority  from  awarding  grants  prior  to  a  final  report  by   the commission.  For each project that will be recommended for approval, the commissioner and the director of the authority shall report to the chair of the senate finance committee, the director of the division of  budget and  the  chair of the assembly ways and means committee how the project meets the priorities, goals and criteria established  pursuant  to  this section.   Contracts  awarded  to  eligible  applicants  shall  require that work performed thereunder shall be deemed "public work" and  subject  to  and preformed  in  accordance with articles eight, nine and ten of the labor law and the contractors performing such work  shall  also  be  deemed  a  state  agency  for the purpose of article fifteen-A of the executive law and subject to the provisions of such article.   2.  Notwithstanding the provisions of subdivision one of this section, the commissioner and the director of the dormitory authority may  award, in an amount not to exceed twenty-five percent of the health care system improvement  capital  grant program allocation in any given fiscal year, grants  to  eligible  applicants  without  the  process  set  forth   in subdivision  one  of  this  section. With respect to the process for the awarding of such funds without the process set forth in subdivision  one of  this  section,  the  commissioner  and the director of the dormitory authority  shall  determine  eligible  awardees  based  solely   on   an applicant's ability to meet the following criteria:  (i)  Have  a  loss  from  operations for each of the three consecutive preceding years as evidenced by audited financial statements; and  (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  (iv)  Be  deemed  to  the  satisfaction  of  the  commissioner to be a provider that fulfills an unmet health care need for  the  community  as determined  by  the  department  through  consideration of the volume of Medicaid and medically indigent patients served; the service volume  and mix,  including  but  not  limited  to  maternity,  pediatrics,  trauma, behavioral and neurobehavioral, ventilator, and emergency  room  volume; and,  the  significance  of  the  institution  in  ensuring  health care services access as measured by market share within the region.  (c) Prior to an award being granted to an eligible applicant without a competitive bid or request for proposal process,  the  commissioner  and the  director  of  the dormitory authority shall notify the chair of the senate finance committee, the chair  of  the  assembly  ways  and  means committee  and  the  director of the division of budget of the intent to grant such an award. Such notice shall include information regarding how the eligible applicant  meets  criteria  established  pursuant  to  this section.   3.  Notwithstanding subdivisions one and two of this section, sections one hundred twelve and one hundred sixty-three of the state finance law, or any other inconsistent provision of law, of the funds  available  for expenditure  pursuant  to  this  section,  thirty million dollars may be allocated and distributed by the commissioner without a competitive  bid or  request  for  proposal process for grants to residential health care facilities for the purpose of restructuring such facilities to achieve a reduction in certified inpatient bed capacity. Consideration relied upon by the commissioner in determining the allocation  and  distribution  of these funds shall include, but not be limited to, the following: (a) the existing  and  projected  need  for  inpatient  nursing  home  beds  and community based long-term care services in the area in which a  facility applying  for  such  funds is located; (b) the quality of the care being provided by the facility; (c) the ability of the facility to access,  in a timely manner, alternative sources of funding, including other sources of  government  funding; and (d) whether additional funding would permit the facility to achieve greater stability and efficiency in the delivery of needed health care services.   4. Notwithstanding the provisions of subdivision one of this  section, the  commissioner and the director of the dormitory authority may award, in an amount not to exceed twenty-five million  dollars  of  the  health care  system  improvement  capital  grant program allocated in any given fiscal year, grants to eligible applicants without the process set forth  in subdivision one of this section to  provide  necessary  restructuring support to hospitals for transition to a new reimbursement methodology.  (a) With respect to the process for the awarding of such funds without the   process  set  forth  in  subdivision  one  of  this  section,  the commissioner and director of the  dormitory  authority  shall  determine eligible  awardees  based  solely  on an applicant's ability to meet the following criteria:  (i) have a loss of  operations  for  each  of  the  three  consecutive preceding years as evidence by audited financial statements; and  (ii)  have a negative fund balance or negative equity position in each of  the  three  preceding  years  as  evidence  by   audited   financial statements; and  (iii)  have  a  current  ratio  of  less  than  1:1  for each of three consecutive preceding days; or  (iv) be deemed to  the  satisfaction  of  the  commissioner  to  be  a provider  that  fulfills  an unmet health care need for the community as determined by the department through  consideration  of  the  volume  of Medicaid  and medically indigent patients served; the service volume and mix,  including  but  not  limited  to  maternity,  pediatrics,  trauma, behavior  and  neurobehavioral,  ventilator,  and emergency room volume; and, the  significance  of  the  institution  in  ensuring  health  care services access as measured by market share within the region; or  (v) be deemed to the satisfaction of the commissioner to have incurred operating losses resulting from the implementation of reimbursement rate reforms  and  other  reductions  enacted by a chapter of the laws of two thousand nine, to provide for the continued financial viability  of  the applicant.  (b) Prior to an award being granted to an eligible applicant without a competitive  bid  or  request for proposal process, the commissioner and the director of the dormitory authority shall notify the  chair  of  the senate  finance  committee,  the  chair  of  the assembly ways and means committee and the director of the budget of the intent to grant such  an award.  Such notice shall include information regarding how the eligible applicant meets criteria established pursuant to this section.   5. (a) Notwithstanding subdivision one, two or three of this  section, the  commissioner,  with the approval of the director of the budget, may expend funds for the  purpose  of  providing  cost  effective  increased access  to the capital markets, including but not limited to through the use of mortgage insurance, credit enhancement, letters of  credit,  bond insurance   or   other  arrangements,  for  capital  projects  that  are determined to meet one or more of the following objectives for hospitals licensed under this article:  (i) securing financing for facilities in a manner  that  will  improve the  operation  and efficiency of the health care delivery system within the state;  (ii) securing financing for facilities in a manner consistent with the objectives  and  determinations  of  the  Commission  on   Health   Care Facilities  in the Twenty-First Century, established pursuant to chapter sixty-three of the laws of two thousand five;  (iii) securing financing for facilities in a  manner  that  will  help rightsize  the  state's  acute  care  infrastructure, including reducing inpatient capacity, downsizing, restructuring, and closing facilities;  (iv) securing financing for facilities in a manner that  advances  the reform  of  the long-term care system, including through rightsizing and providing community-based services;  (v) securing financing for facilities in a manner  that  improves  the primary  and  ambulatory  care  system  including programs undertaken in collaboration with a local development corporation incorporated pursuant  to sections four hundred one and one thousand four hundred eleven of the not-for-profit corporation law to foster the development  and  expansion of high quality, cost effective primary health care services and related ambulatory  care and ancillary services benefiting medically underserved communities, principally in the state, to increase access  of  community residents  to  such  services,  to  improve  the  health  status of such residents and to lessen the burdens of government and act in the  public interest; and  (vi)  such  other  objectives as the commissioner deems appropriate to effectuate the intent of this subdivision.  (b) The commissioner may transfer funds to  other  state  agencies  or public  authorities,  with  the  approval  of the director of budget, to effectuate the purposes of this subdivision.   6. Notwithstanding any contrary provision of  this  section,  sections one hundred twelve and one hundred sixty-three of the state finance law, or   any   other   contrary  provision  of  law,  subject  to  available appropriations, funds available for expenditure pursuant to this section may be distributed by the commissioner  without  a  competitive  bid  or request  for  proposal  process  for  grants  to  general  hospitals and residential health care  facilities  for  the  purpose  of  facilitating closures,  mergers  and  restructuring  of  such  facilities in order to strengthen  and  protect  continued  access  to  essential  health  care resources.  Provided  however,  that  to  the  extent  practicable,  the commissioner shall award such grants  equitably  among  health  planning regions  of  the  state.  Prior to an award being granted to an eligible applicant without a competitive bid or request for proposal process, the commissioner shall notify the chair of the senate finance committee, the chair of the assembly ways and means committee and the director  of  the division  of  budget  of  the intent to grant such an award. Such notice shall include information regarding how  the  eligible  applicant  meets criteria established pursuant to this section.   7.  Notwithstanding subdivisions one and two of this section, sections one hundred twelve and one hundred sixty-three of the state finance law, or any other inconsistent provision of law, of the funds  available  for expenditure  pursuant to this section, the commissioner may allocate and distribute, without a competitive bid or request for  proposal  process, grants  to accountable care organizations under article twenty-nine-E of this chapter for the purpose of promoting their formation and  improving their  operation.  Consideration  relied  upon  by  the  commissioner in determining  the  allocation  and  distribution  of  these  funds  shall include,  but  not  be  limited  to,  the  need  for and capacity of the accountable care organization to  accomplish  the  purposes  of  article twenty-nine-E of this chapter in the area to be served.   8.  On or before December first, two thousand fourteen, the department shall issue a report to the governor, the  temporary  president  of  the senate and the speaker of the assembly regarding grants made pursuant to this section to support health information technology.