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

§  2825-e.  Health care facility transformation program: statewide II.
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 funding in support of
capital projects, debt retirement, working capital or other  non-capital
projects   that   facilitate   health   care  transformation  activities
including, but not limited to,  merger,  consolidation,  acquisition  or
other  activities  intended to create financially sustainable systems of
care or preserve or expand essential health care services. Grants  shall
not  be available to support general operating expenses. 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 dormitory 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  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, and community-based health care providers as defined
in  subdivision three of this section for 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 the 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 new applications  for  projects
not  funded  under  section  twenty-eight  hundred twenty-five-d 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
five 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  (hereafter  "applicants").
Provided,  however,  that  a  minimum of seventy-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 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; a primary care provider or a home care  provider  certified
or  licensed  pursuant  to  article thirty-six of this chapter; or other
purposes and community-based providers designated  by  the  commissioner
pursuant  to information obtained pursuant to subdivision four-a of this
section.  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. 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  award  up  to  three  hundred  million
dollars  of  the  funds  made  available  pursuant  to  this section for
unfunded project applications submitted in response to the  request  for
applications   number  1607010255  issued  by  the  department  on  July
twentieth, two thousand sixteen pursuant to section twenty-eight hundred
twenty-five-d of this article, provided however that the  provisions  of
subdivision three of this section shall apply.
4-a.  Authorized  amounts  to  be  awarded  pursuant  to  applications
submitted in response to the request for application  number  1607010255
shall  be  awarded  no later than May first, two thousand seventeen. The
commissioner shall not issue a request for application for the remaining
appropriated amounts on or before June first, two thousand seventeen  to
allow  stakeholder,  community,  and legislative input regarding program
eligibility, award criteria and the process by which the remaining funds
will be awarded.
5. In determining awards for eligible applicants under  this  section,
the  commissioner shall consider stakeholder, community, and legislative
input pursuant to subdivision four-a of this section, and other criteria
including, but not limited to:
(a) The extent to which the proposed project will  contribute  to  the
integration  of  health care services or the 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  project and identified
community need;
(e) The extent to  which  the  applicant  has  access  to  alternative
financing;
(f)  The  extent that the proposed project furthers the development of
primary care and other outpatient services;
(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  community
engagement has shaped such project; and
(i)  The extent to which the proposed project addresses potential risk
to patient safety and welfare.
6. 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 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.
7. The department shall provide a report on a quarterly basis  to  the
chairs of the senate finance, assembly ways and means, and 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.