2023 New York Laws › PBH - Public Health › Article 28 - Hospitals › 2825-D - Health Care Facility Tranformation Program: Statewide.

§ 2825-d. Health care facility transformation program: statewide. 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 capital funding in
support of projects that replace inefficient and outdated facilities  as
part  of  a  merger,  consolidation,  acquisition  or  other significant
corporate  restructuring  activity  that   is   part   of   an   overall
transformation  plan intended to create a financially sustainable system
of care. 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 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 and the  president  of  the
authority  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,  for capital
non-operational 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  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  projects  not  funded, in whole or in part, under section
twenty-eight hundred twenty-five or twenty-eight  hundred  twenty-five-c
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
two  hundred  million dollars of the funds appropriated for this program
shall be awarded without a  competitive  bid  or  request  for  proposal
process   for   capital  grants  to  health  care  providers  (hereafter
"applicants").   Provided however  that  a  minimum  of  thirty  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;  primary care providers; or a home care provider certified
or licensed pursuant to article thirty-six  of  this  chapter.  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. In determining awards for eligible applicants under  this  section,
the  commissioner  and  the  president  of  the authority shall consider
criteria including, but not limited to:
(a)  the  extent to which the proposed capital project will contribute
to the integration of health care services and 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  capital  project   and
identified community need;
(e)  the  extent  to  which  the  applicant  has access to alternative
financing;
(f)  the  extent  that  the  proposed  capital  project  furthers  the
development of primary care and other outpatient services;
(g) the extent to which the proposed capital project benefits Medicaid
enrollees and uninsured individuals;
(h)  the  extent  to  which  the  applicant  has engaged the community
affected by the  proposed  capital  project  and  the  manner  in  which
community engagement has shaped such capital project; and
(i)  the  extent  to  which  the  proposed  capital  project addresses
potential risk to patient safety and welfare.
5. 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.
6.  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 five of this section.