2023 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.