2016 New York Laws
PBH - Public Health
Article 28 - (Public Health) HOSPITALS
2825-C - Essential health care provider support program.

   2825-c.   Essential  health  care  provider  support  program.  1.
  Notwithstanding section one hundred sixty-three  of  the  state  finance
  law,  or  any  inconsistent  provision  of  law  to the contrary, within
  amounts appropriated, funds may be  allocated  and  distributed  by  the
  commissioner  without a competitive bid or request for proposal process,
  for  grants  to  essential  health  care  providers  to   support   debt
  retirement,  capital  projects  or  non-capital projects that facilitate
  health  care  transformation,  including  mergers,  consolidation,   and
  restructuring  activities  intended  to create a financially sustainable
  system of care.  Grants  shall  not  be  available  to  support  general
  operating  expenses.  For  purposes of this section, an essential health
  care provider is a hospital or hospital system that, in  the  discretion
  of  the  commissioner,  offers  health  care  services  within a defined
  geographic region where such services would otherwise be unavailable  to
  the population of such region.
2.  The  commissioner  shall award grants for projects consistent with
  the purposes  of  this  section.  Eligible  applicants  shall  meet  the
  following criteria:
(a)  (i) have a loss from operations for each of the three consecutive
  preceding years as evidenced by audited financial statements;
(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
(b)  be  deemed  by the commissioner to be a provider that fulfills or
  will fulfill an unmet need for acute inpatient, outpatient,  primary  or
  residential  health  care  services in a defined geographic region where
  such services would be otherwise unavailable to the population  of  such
  region.
3.  Such  awards  shall be distributed pursuant to criteria, including
  but not limited to:
(a) the extent to which the proposed project will  contribute  to  the
  long  term  sustainability of the applicant or preservation of essential
  health care services in a community;
(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  an  identified
  community need;
(e)  the  extent  to  which  the  applicant  has access to alternative
  financing;
(f) the extent to which the proposed project furthers the  development
  of primary care;
(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 the community
  engagement has shaped such project; and
(i) the extent to which the proposed project addresses potential  risk
  to patient safety and welfare.
4.  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.
5.  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 four of this section.