2016 New York Laws
PBH - Public Health
Article 28 - (Public Health) HOSPITALS
2815 - Health facility restructuring program.

 2815. Health facility restructuring program. 1. Definitions. As used
  in  this  section,  the  following  words  and  phrases  shall  have the
  following meanings unless a different meaning is plainly required by the
  context:
(a) "Agency" shall mean the New  York  state  housing  finance  agency
  created by article three of the private housing finance law.
(b) "Authority" shall mean the dormitory authority of the state of New
  York  created  by  title four of article eight of the public authorities
  law which has succeeded to the  powers,  functions  and  duties  of  the
  medical  care facilities finance agency pursuant to chapter eighty-three
  of the laws of nineteen hundred ninety-five.
(c) "Participating  borrower"  shall  mean  a  not-for-profit  general
  hospital, a not-for-profit diagnostic center, a not-for-profit treatment
  center,  a  not-for-profit residential health care facility or any other
  not-for-profit entity in possession of  a  valid  operating  certificate
  issued  pursuant  to this article, each organized under the laws of this
  state, which has been approved for participation in this program by  the
  commissioner.
(d)  "Restructuring pool" shall mean the health facility restructuring
  pool authorized to be established by  the  authority  pursuant  to  this
  section.
2.  The  authority shall establish the restructuring pool. Funds shall
  be transferred by the commissioner to the authority for deposit  in  the
  restructuring   pool   as   authorized  pursuant  to  paragraph  (d)  of
  subdivision one of section twenty-eight hundred  seven-l  and  paragraph
  (b)  of  subdivision nineteen of section twenty-eight hundred seven-c of
  this article or any other provision of law. Funds in  the  restructuring
  pool  shall  be  held  by  the  authority  pursuant  to  this section as
  custodian, administered by the authority pursuant to an  agreement  with
  the  commissioner  and  invested by the authority in accordance with the
  investment guidelines of the authority. All investment income  shall  be
  credited  to,  and any repayments of loans as hereinafter provided shall
  be deposited in, the restructuring pool, and spent  therefrom  only  for
  the purposes set forth in this section.
3.  The commissioner, the authority and the agency shall enter into an
  agreement, subject to the approval of the director of  the  budget,  for
  the  purpose  of  administering the funds in the restructuring pool in a
  manner that will benefit the public health by  encouraging  improvements
  in  the  health  care  delivery  system  in  the  state.  A copy of such
  agreement, and any amendment 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, but not be limited to, the following provisions:
(a)  for  the receipt, management and expenditure of funds held in the
  restructuring pool by the authority;
(b) for the development  and  implementation  of  business  plans  for
  participating  borrowers, addressing the development of service delivery
  strategies, including strategies for the formation or  strengthening  of
  networks,  affiliations  or  other  business  combinations,  designed to
  provide long-term financial stability  within  and  among  participating
  borrowers;
(c)  for  the  expenditure  or loan of funds by the authority from the
  restructuring pool to reimburse  the  authority  or  the  agency,  where
  appropriate,  for  the costs of engaging management, legal or accounting
  consultants to identify, develop and implement improved  strategies  for
  one or more participating borrowers for implementing the recommendations
  of  such  consultants,  where  appropriate,  and for the payment of debt
  service on bonds, notes or other obligations issued or incurred  by  the

  authority  or  the  agency  to  fund  loans to one or more participating
  borrowers;
(d)  for  assurances  that  participating  borrowers  will address the
  recommendations of such consultants and furnish  the  commissioner,  the
  authority,  and  where  applicable,  the  agency,  with  such additional
  financial, management, legal and operational  information  as  each  may
  deem  necessary  to monitor the performance of a participating borrower;
  and
(e) for the agency to obtain funds from the restructuring pool  to  be
  used for the purposes set forth in this section.
3-a. Any participating borrower may apply for restructuring pool funds
  to  the  extent  such  funds  are derived from deposits made pursuant to
  paragraph (d) of subdivision one of section twenty-eight hundred seven-l
  of  this  article,  provided,   however,   that,   in   reviewing   such
  applications,  the  commissioner  and  the  authority shall consider the
  extent to which the applicant hospital has alternative available sources
  of funds,  including,  but  not  limited  to,  funds  available  through
  affiliation agreements with other hospitals or entities.
4.  To  the  extent  funds are available from a participating borrower
  therefor, expenditures from the restructuring pool shall  be  repaid  to
  the restructuring pool from repayments received by the authority, or the
  agency  where  applicable, from a participating borrower pursuant to the
  terms of any financing agreement, mortgage or loan  document  permitting
  the  recovery  from the participating borrower of such expenditures. The
  authority shall record and account for all such payments, which shall be
  deposited in the restructuring pool.
5. Loans from the restructuring pool shall  be  made  pursuant  to  an
  agreement  with the participating borrower specifying the terms thereof,
  including repayment terms. The authority shall record  and  account  for
  all such repayments, which shall be deposited in the restructuring pool.
  The  authority  shall  notify the chair of the senate finance committee,
  the director of the division of budget, the chair of the  assembly  ways
  and  means  committee,  the chair of the senate committee on health, and
  the chair of the assembly health  committee,  five  days  prior  to  the
  making  of  a loan from the restructuring pool. The authority shall also
  report quarterly to such chairpersons on the transactions in  the  pool,
  including  but  not  limited  to  receipts  or  deposits  to  the  pool,
  disbursements or loans made from the pool, investment  income,  and  the
  balance on hand as of the end of the month for each such quarter.
6. The commissioner is authorized, with the assistance and cooperation
  of  the  authority,  to  provide  a  program  of technical assistance to
  participating borrowers.