§ 2815 — Health facility restructuring program

§ 2815. Health facility restructuring program. 1. Definitions. As used\nin this section, the following words and phrases shall have the\nfollowing meanings unless a different meaning is plainly required by the\ncontext:\n (a) "Agency" shall mean the New York state housing finance agency\ncreated by article three of the private housing finance law.\n (b) "Authority" shall mean the dormitory authority of the state of New\nYork created by title four of article eight of the public authorities\nlaw which has succeeded to the powers, functions and duties of the\nmedical care facilities finance agency pursuant to chapter eighty-three\nof the laws of nineteen hundred ninety-five.\n (c) "Participating borrower" shall mean a not-for-profit general\nhospital, a not-for-profit diagnostic center, a not-for-profit treatment\ncenter, a not-for-profit residential health care facility or any other\nnot-for-profit entity in possession of a valid operating certificate\nissued pursuant to this article, each organized under the laws of this\nstate, which has been approved for participation in this program by the\ncommissioner.\n (d) "Restructuring pool" shall mean the health facility restructuring\npool authorized to be established by the authority pursuant to this\nsection.\n 2. The authority shall establish the restructuring pool. Funds shall\nbe transferred by the commissioner to the authority for deposit in the\nrestructuring pool as authorized pursuant to paragraph (d) of\nsubdivision one of section twenty-eight hundred seven-l and paragraph\n(b) of subdivision nineteen of section twenty-eight hundred seven-c of\nthis article or any other provision of law. Funds in the restructuring\npool shall be held by the authority pursuant to this section as\ncustodian, administered by the authority pursuant to an agreement with\nthe commissioner and invested by the authority in accordance with the\ninvestment guidelines of the authority. All investment income shall be\ncredited to, and any repayments of loans as hereinafter provided shall\nbe deposited in, the restructuring pool, and spent therefrom only for\nthe purposes set forth in this section.\n 3. The commissioner, the authority and the agency shall enter into an\nagreement, subject to the approval of the director of the budget, for\nthe purpose of administering the funds in the restructuring pool in a\nmanner that will benefit the public health by encouraging improvements\nin the health care delivery system in the state. A copy of such\nagreement, and any amendment thereto, shall be provided to the chair of\nthe senate finance committee, the director of the division of budget,\nand the chair of the assembly ways and means committee. Such agreement\nshall include, but not be limited to, the following provisions:\n (a) for the receipt, management and expenditure of funds held in the\nrestructuring pool by the authority;\n (b) for the development and implementation of business plans for\nparticipating borrowers, addressing the development of service delivery\nstrategies, including strategies for the formation or strengthening of\nnetworks, affiliations or other business combinations, designed to\nprovide long-term financial stability within and among participating\nborrowers;\n (c) for the expenditure or loan of funds by the authority from the\nrestructuring pool to reimburse the authority or the agency, where\nappropriate, for the costs of engaging management, legal or accounting\nconsultants to identify, develop and implement improved strategies for\none or more participating borrowers for implementing the recommendations\nof such consultants, where appropriate, and for the payment of debt\nservice on bonds, notes or other obligations issued or incurred by the\nauthority or the agency to fund loans to one or more participating\nborrowers;\n (d) for assurances that participating borrowers will address the\nrecommendations of such consultants and furnish the commissioner, the\nauthority, and where applicable, the agency, with such additional\nfinancial, management, legal and operational information as each may\ndeem necessary to monitor the performance of a participating borrower;\nand\n (e) for the agency to obtain funds from the restructuring pool to be\nused for the purposes set forth in this section.\n 3-a. Any participating borrower may apply for restructuring pool funds\nto the extent such funds are derived from deposits made pursuant to\nparagraph (d) of subdivision one of section twenty-eight hundred seven-l\nof this article, provided, however, that, in reviewing such\napplications, the commissioner and the authority shall consider the\nextent to which the applicant hospital has alternative available sources\nof funds, including, but not limited to, funds available through\naffiliation agreements with other hospitals or entities.\n 4. To the extent funds are available from a participating borrower\ntherefor, expenditures from the restructuring pool shall be repaid to\nthe restructuring pool from repayments received by the authority, or the\nagency where applicable, from a participating borrower pursuant to the\nterms of any financing agreement, mortgage or loan document permitting\nthe recovery from the participating borrower of such expenditures. The\nauthority shall record and account for all such payments, which shall be\ndeposited in the restructuring pool.\n 5. Loans from the restructuring pool shall be made pursuant to an\nagreement with the participating borrower specifying the terms thereof,\nincluding repayment terms. The authority shall record and account for\nall such repayments, which shall be deposited in the restructuring pool.\nThe authority shall notify the chair of the senate finance committee,\nthe director of the division of budget, the chair of the assembly ways\nand means committee, the chair of the senate committee on health, and\nthe chair of the assembly health committee, five days prior to the\nmaking of a loan from the restructuring pool. The authority shall also\nreport quarterly to such chairpersons on the transactions in the pool,\nincluding but not limited to receipts or deposits to the pool,\ndisbursements or loans made from the pool, investment income, and the\nbalance on hand as of the end of the month for each such quarter.\n 5-a. Notwithstanding anything in this section to the contrary, the\nauthority is authorized and directed to transfer from the restructuring\npool to the department, upon written request of the director of the\nbudget and within thirty days thereof, funds repaid by participating\nborrowers, and held by the authority relating to restructuring pool\nloans funded by amounts transferred to the restructuring pool by the\ndepartment or remaining funds in the restructuring pool that were\ntransferred by the department, not to exceed a total of eighty-three\nmillion five hundred thousand dollars, excepting therefrom amounts\nnecessary to pay expenses of the authority as provided in the agreement\ndescribed in subdivision three of this section. All participating\nborrowers shall be obligated in their loan agreement to repay no later\nthan March thirty-first, two thousand twenty all funds borrowed from the\neighty-three million five hundred thousand dollars transferred by the\ndepartment pursuant to this section, to fund these restructuring pool\nloans. Further, in respect of these borrowed funds, all participating\nborrowers shall be required under the terms of their loan agreement to\nimmediately upon receipt of quality improvement incentive payments or\nadditional supplemental assistance initiate repayment of an amount equal\nto the quality improvement incentive payments or additional supplemental\nassistance not to exceed the amount of such borrowed funds, unless a\nwaiver or extension of repayment has been approved by the director of\nthe budget.\n 6. The commissioner is authorized, with the assistance and cooperation\nof the authority, to provide a program of technical assistance to\nparticipating borrowers.\n