§ 6 — Relationship to the city; agreements concerning health facilities

§ 6. Relationship to the city; agreements concerning health\nfacilities. 1. (a) The city shall on or before the first day of July\nnineteen hundred seventy enter into an agreement or agreements with the\ncorporation, pursuant to this section and section seven herein, whereby\nthe corporation shall operate the hospitals then being operated by the\ncity for the treatment of acute and chronic diseases, and for the fiscal\nyear of the city commencing on the first day of July nineteen hundred\nseventy and thereafter the city shall include in its expense budget an\nappropriation of tax levy for the services provided by the corporation\nand pay the corporation an amount which shall not be less than one\nhundred seventy-five million dollars; provided, however, that for the\nfiscal year beginning July first, nineteen hundred seventy-two and\nthereafter the amount shall be adjusted annually to take account of\nincreases in the cost of health care as reflected in increases in the\naverage rates of reimbursement set by the state pursuant to section\ntwenty-one hundred seven of the public health law for health and\nhospital services in New York City, and changes in the volume of\nservices rendered by the corporation and required by the city for which\nno reimbursement from third-party sources is available. The corporation\nshall submit a program budget to the city, in time for inclusion in the\nmayor's executive budget, detailing the anticipated expenditure of the\ntax levy funds appropriated by the city for the coming fiscal year.\n The provisions of subdivision three of paragraph a of section 135.00\nof the local finance law shall not apply to a contract entered into\npursuant to this section.\n 1. (b) Within a reasonable time thereafter the city shall enter into a\nsimilar agreement or agreements for the remaining personal health and\nmedical facilities then operated by the city.\n 2. (a) The corporation shall have the power to enter into contracts,\nleases, sub-leases or other agreements permitting the city to purchase,\nlease, sub-lease or otherwise acquire or use any health facility by or\nunder the jurisdiction of the corporation; and to permit the city to\nconstruct or add health facilities or improvements upon or to such\nhealth facility.\n (b) The city shall be empowered to purchase, lease, sub-lease or\notherwise acquire or contract for the use of and use any health facility\nheld by or under the jurisdiction of the corporation, or to construct or\nadd health facilities or improvements upon or to such a health facility,\nin accordance with the terms of any contract, lease, sub-lease or other\nagreement entered into pursuant to the terms of this act.\n 3. Any contract, lease, sub-lease or other agreement between the city\nand the corporation for the purchase, lease, sub-lease, use, operation\nor construction and equipment of a health facility, as authorized by\nthis act, shall\n (a) set forth any health facility to be constructed and equipped, used\nor operated;\n (b) provide that the corporation shall apply for and receive all\nreimbursement allowances or other moneys available to the corporation\nfrom any source for the provision of health and medical services for\nwhich such reimbursement allowances or other moneys are available,\nthrough or in the facilities of the corporation, and that such\nreimbursement allowances or other moneys shall be collected and received\nby the corporation directly from any such source, and used by the\ncorporation for the purposes herein recited;\n (c) provide that whenever the city requires the corporation to provide\nhealth and medical services to persons in the city, the city shall pay\nthe corporation for the cost of such services as are actually rendered,\nsuch cost to be determined by agreement between the city and the\ncorporation; provided, however, that such payments shall only be made by\nthe city to the extent that no reimbursement allowances or other\npayments are paid to the corporation from any other government or other\nsources for the payment of such costs; and\n (d) provide that the health and medical services provided by or\nthrough any such health facility shall be available to the public upon\nthe terms and conditions set forth in such contract, lease, sub-lease or\nother agreement.\n 4. (a) Any such contract, lease, sub-lease or other agreement between\nthe city and the corporation that requires the corporation to construct\nand equip, or causes to be constructed or equipped, a health facility\nshall provide that the city shall be required to pay the total estimated\ncost of such construction and equipment to the corporation at such times\nand in such amounts as determined and requested by the corporation, any\nsuch payment to be made by the city upon the delivery to the comptroller\nof the corporation of a certificate requesting such payment.\n (b) For the purpose of this subdivision four, the cost of construction\nand equipment shall include, but not be limited to, the cost of any\nplans, specifications, drawings or designs prepared for the purposes of\nthe health facility concerned.\n 5. Any such contract, lease, sub-lease or other agreement between the\ncity and the corporation may contain provisions, in addition to any\nrequired by the provisions of this act, as to:\n (a) pledging or assigning any part of moneys and revenues, including\nreimbursement allowances, derived by the city, or the corporation, to\nsecure payments required by such contract, lease, sub-lease or other\nagreement;\n (b) limitations on the purposes to which the proceeds of the sale of\nthe bonds and notes of the corporation may be applied and as to the\npledging of such proceeds to secure the payment of bonds and notes of\nthe corporation or of any issued thereby, subject to any agreement with\nthe holders of bonds or notes of the corporation;\n (c) setting aside reserves and creating special funds and the\nregulation and disposition thereof;\n (d) procedures, if any, by which such contract, lease, sub-lease or\nother agreement may be amended, the amount of bonds or notes or other\nobligations the holders of which must consent thereto, and the manner in\nwhich such consent may be given;\n (e) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the city or corporation and\nproviding for the rights and remedies of the corporation and the holders\nof its bonds, notes or other obligations in the event of such default;\n (f) any other matters, of like or different character, which may be\ndeemed necessary or desirable by the corporation for the proper\neffectuation of its corporate purposes or for the security or protection\nof the holders of its bonds, notes, or other obligations.\n 6. The city shall not be required to make any payment to the\ncorporation, nor shall any charge, claim or liability exist or arise\nagainst the city for any such payment, in excess of amounts appropriated\nor otherwise authorized by the city therefor. Payments due or to become\ndue by the city pursuant to any contract, lease, sub-lease or other\nagreement with the corporation shall not constitute outstanding\nindebtedness of the city for the purposes of paragraph three of\nsubdivision (a) of section 135.00 of the local fianance law.\n 7. The corporation shall exercise its powers to provide and deliver\nhealth and medical services to the public in accordance with policies\nand plans of the administration with respect to the provision and\ndelivery of such services and the corporation shall have the power to\nadopt and implement rules and regulations not inconsistent with such\npolicies and plans of the administration. For its part, the\nadministration shall assist and cooperate with the corporation with\nrespect to such matters.\n