2023 New York Laws › PBH - Public Health › Article 28 - Hospitals › 2825-C - Essential Health Care Provider Support Program.

§   2825-c.   Essential  health  care  provider  support  program.  1.
Notwithstanding section one hundred sixty-three  of  the  state  finance
law,  or  any  inconsistent  provision  of  law  to the contrary, within
amounts appropriated, funds may be  allocated  and  distributed  by  the
commissioner  without a competitive bid or request for proposal process,
for  grants  to  essential  health  care  providers  to   support   debt
retirement,  capital  projects  or  non-capital projects that facilitate
health  care  transformation,  including  mergers,  consolidation,   and
restructuring  activities  intended  to create a financially sustainable
system of care.  Grants  shall  not  be  available  to  support  general
operating  expenses.  For  purposes of this section, an essential health
care provider is a hospital or hospital system that, in  the  discretion
of  the  commissioner,  offers  health  care  services  within a defined
geographic region where such services would otherwise be unavailable  to
the population of such region.
2.  The  commissioner  shall award grants for projects consistent with
the purposes  of  this  section.  Eligible  applicants  shall  meet  the
following criteria:
(a)  (i) have a loss from operations for each of the three consecutive
preceding years as evidenced by audited financial statements;
(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
(b)  be  deemed  by the commissioner to be a provider that fulfills or
will fulfill an unmet need for acute inpatient, outpatient,  primary  or
residential  health  care  services in a defined geographic region where
such services would be otherwise unavailable to the population  of  such
region.
3.  Such  awards  shall be distributed pursuant to criteria, including
but not limited to:
(a) the extent to which the proposed project will  contribute  to  the
long  term  sustainability of the applicant or preservation of essential
health care services in a community;
(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  an  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;
(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 the community
engagement has shaped such project; and
(i) the extent to which the proposed project addresses potential  risk
to patient safety and welfare.
4.  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.
5.  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 four of this section.