2023 New York Laws › PBH - Public Health › Article 28 - Hospitals › 2825-I - Healthcare Safety Net Transformation Program.

§  2825-i.  Healthcare  safety  net  transformation  program. 1. (a) A
statewide  healthcare  safety  net  transformation  program   shall   be
established  within  the  department  for  the purpose of supporting the
transformation of  safety  net  hospitals  to  improve  access,  equity,
quality,  and  outcomes while increasing the financial sustainability of
safety net hospitals.  Such  program  may  provide  or  utilize  new  or
existing   capital   funding,  or  operating  subsidies,  or  both.  Any
application for this program must be jointly submitted by a  safety  net
hospital and at least one partner organization.
(b)  All  applications shall demonstrate how the requested funding and
regulatory flexibilities are necessary to achieve the program  goals  of
improving  the  safety  net  hospital's  financial outlook and improving
health outcomes for the communities it serves.  The  commissioner  shall
develop an application for this program that includes but is not limited
to the following information:
(i)  key  organizational  information,  including  the  organizational
structure of the safety net hospital and partner organization (including
any parent or subsidiary, and the  interrelationship  between  all  such
organizations)  and  the  name,  business address, and biography of each
director and officer of the safety net hospital, the partner, and  other
organizations  within  either the safety net hospital's or the partner's
organizational structure;
(ii) the type of  collaborative  model  proposed,  including  but  not
limited  to  a  merger,  acquisition,  management  services contract, or
clinical integration;
(iii) a detailed description of the proposed transformation plan  that
includes,  at  a  minimum,  a  five-year  strategic and operational plan
outlining the roles and responsibilities of the safety net hospital  and
partner organization;
(iv) a timeline of key metrics and goals;
(v)  any  regulatory  flexibilities  required  to implement such plan,
including the justification for why such flexibilities are necessary for
the transformation plan to achieve an improved financial outlook for the
safety net hospital and improved health outcomes for the communities  it
serves;
(vi)  the  amount  of  funding  requested for the first five years and
projected needs thereafter, including the rationale for why such funding
is  necessary  for  the  transformation  plan  to  achieve  an  improved
financial  outlook  for  the  safety  net  hospital  and improved health
outcomes for the communities it serves; and
(vii) detailed  plans  for  any  operational  surplus  after  reaching
financial sustainability.
2. The commissioner shall enter 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, as required, 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 subject  to  appropriation.  Such
funds  may  be  awarded  and distributed by the department to safety net
hospitals, or a partner organization, in the form of grants. To  qualify
as a safety net hospital for purposes of this section, a hospital shall:
(a)  be either a public hospital, a rural emergency hospital, critical
access hospital or sole community hospital;
(b) have at least thirty percent of its inpatient discharges  made  up
of   medical   assistance   program   eligible   individuals,  uninsured
individuals or medical assistance program  dually  eligible  individuals
and  at  least  thirty-five  percent of its outpatient visits made up of

medical assistance program eligible individuals,  uninsured  individuals
or medical assistance program dually-eligible individuals;
(c)  serve  at  least thirty percent of the residents of a county or a
multi-county  area  who  are   medical   assistance   program   eligible
individuals,   uninsured   individuals  or  medical  assistance  program
dually-eligible individuals; or
(d) in  the  discretion  of  the  commissioner,  serve  a  significant
population of medical assistance program eligible individuals, uninsured
individuals or medical assistance program dually-eligible individuals.
3.  Partner  organizations may include, but are not limited to, health
systems, hospitals, health plans, residential  health  care  facilities,
physician  groups,  community-based  organization,  or  other healthcare
entities who can serve as partners in the transformation of  the  safety
net hospital.
4.  Notwithstanding  section  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 provisions of law to
the  contrary,  awards  may  be  provided  without  a competitive bid or
request  for  proposal  process  to  safety  net  hospitals  or  partner
organizations  for  purposes  of  increasing  access,  equity,  quality,
outcomes, and long-term financial  sustainability  of  such  safety  net
hospitals.
5.   Notwithstanding  any  provision  of  law  to  the  contrary,  the
commissioner may waive regulatory requirements to  allow  applicants  to
more  effectively  or efficiently implement projects awarded through the
healthcare safety net transformation program,  provided,  however,  that
regulations  pertaining  to  minimum standards for hospitals for patient
safety, patient autonomy, patient privacy, patient  rights,  quality  of
care,  safe  staffing,  adverse  event  reporting, due process, scope of
practice, professional licensure, environmental  protections,  infection
control, provider reimbursement methodologies, character and competence,
or  occupational  standards and employee rights shall not be waived, nor
shall any regulations be  waived  if  such  waiver  would  risk  patient
safety.  Such  waiver  shall  not exceed the life of the project or such
shorter time periods as the commissioner may determine.  Any  regulatory
relief  granted  pursuant  to  this  subdivision  shall  be specifically
described and requested within each project application and be  reviewed
by the commissioner.
6.  Continued  support  under the program shall be contingent upon the
implementation of the approved plan and key milestones.
7. The release of any funding will be contingent upon compliance  with
the transformation plan and a determination that acceptable progress has
been  made  with  such  plan.  If  key milestones and goals are not met,
additional financial resources may be withheld and redirected, upon  the
recommendation  of  the  commissioner  and  approval  by the director of
budget.
8. The commissioner shall provide a report on an annual basis  to  the
speaker  of  the  assembly,  the  temporary president of the senate, the
chair of the assembly ways and means committee, the chair of the  senate
finance  committee,  and  the director of the division of budget, on any
transformation plan approved under this section,  including  information
on  partnership agreements, and any amendments thereto. The report shall
also include for each award, the name of the hospital and  partner,  the
corporate  structure  of  any partner organization, a description of the
project and its purpose, the amount of the award  and  the  disbursement
date,  the regulations waived for each project and the justification for
such waiver, and the status of achievement of  performance  metrics  and
milestones.  Such  report  shall  be  provided  until  such  time as the

department determines that the projects that receive funding pursuant to
this section are substantially complete.