§ 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\n(HEAL NY) capital grant program. 1. The commissioner and the director of\nthe dormitory authority of the state of New York shall enter into an\nagreement, subject to the approval of the director of the budget, for\nthe purpose of administering the funds available to the health care\nefficiency and affordability law for New Yorkers (HEAL NY) capital grant\nprogram as authorized under section sixteen hundred eighty-j of the\npublic authorities law, in a manner that will encourage improvements in\nthe operation and efficiency of the health care delivery system within\nthe state. A copy of such agreement, and any amendments thereto, shall\nbe provided to the chair of the senate finance committee, the director\nof the division of budget and the chair of the assembly ways and means\ncommittee.\n Such agreement shall include criteria, to be developed by the\ncommissioner and the director of the authority, to be considered in\ntheir evaluation of applications and determination of awards, including,\nbut not limited to:\n (a) determination of eligible applicants, provided that such eligible\napplicants shall include entities representative of any part of the\nhealth care delivery system;\n (b) consideration of statewide geographic distribution of funds;\n (c) minimum and maximum amounts of funding to be awarded under the\nprogram;\n (d) the relationship between the project proposed by an applicant and\nidentified community need; and\n (e) the extent to which the applicant has access to alternative\nfinancing.\n Such agreement shall be provided to the chair of the senate finance\ncommittee, the director of the division of budget and the chair of the\nassembly ways and means committee no later than thirty days prior to the\nscheduled approval of the first bond issuance for the program by the\npublic authorities control board. The authority shall also report\nquarterly to such chairpersons on the awards made through the program,\nincluding the name of the applicant, a description of the project and\nthe amount of the award.\n The commissioner and the director of the authority shall award grants\nto eligible applicants after due public notice of the availability of\nfunds and through a process which ensures to the maximum extent\npracticable and where appropriate, competition among such applicants,\nconsistent with the following requirements: the commissioner and the\ndirector of the authority shall publish the priorities and goals that\nare to be achieved through grant funding, and regularly provide public\nnotice of the availability of funding. These priorities and goals shall\nbe consistent with objectives and determinations of the Commission on\nHealth Care facilities in the Twenty-First Century established pursuant\nto a chapter of the laws of two thousand five, provided, however, that\nnothing shall prohibit the commissioner and the director for the\nauthority from awarding grants prior to a final report by the\ncommission. For each project that will be recommended for approval, the\ncommissioner and the director of the authority shall report to the chair\nof the senate finance committee, the director of the division of budget\nand the chair of the assembly ways and means committee how the project\nmeets the priorities, goals and criteria established pursuant to this\nsection.\n Contracts awarded to eligible applicants shall require that work\nperformed thereunder shall be deemed "public work" and subject to and\npreformed in accordance with articles eight, nine and ten of the labor\nlaw and the contractors performing such work shall also be deemed a\nstate agency for the purpose of article fifteen-A of the executive law\nand subject to the provisions of such article.\n 2. Notwithstanding the provisions of subdivision one of this section,\nthe commissioner and the director of the dormitory authority may award,\nin an amount not to exceed twenty-five percent of the health care system\nimprovement capital grant program allocation in any given fiscal year,\ngrants to eligible applicants without the process set forth in\nsubdivision one of this section. With respect to the process for the\nawarding of such funds without the process set forth in subdivision one\nof this section, the commissioner and the director of the dormitory\nauthority shall determine eligible awardees based solely on an\napplicant's ability to meet the following criteria:\n (i) Have a loss from operations for each of the three consecutive\npreceding years as evidenced by audited financial statements; and\n (ii) Have a negative fund balance or negative equity position in each\nof the three preceding years as evidenced by audited financial\nstatements; and\n (iii) Have a current ratio of less than 1:1 for each of three\nconsecutive preceding years; or\n (iv) Be deemed to the satisfaction of the commissioner to be a\nprovider that fulfills an unmet health care need for the community as\ndetermined by the department through consideration of the volume of\nMedicaid and medically indigent patients served; the service volume and\nmix, including but not limited to maternity, pediatrics, trauma,\nbehavioral and neurobehavioral, ventilator, and emergency room volume;\nand, the significance of the institution in ensuring health care\nservices access as measured by market share within the region.\n (c) Prior to an award being granted to an eligible applicant without a\ncompetitive bid or request for proposal process, the commissioner and\nthe director of the dormitory authority shall notify the chair of the\nsenate finance committee, the chair of the assembly ways and means\ncommittee and the director of the division of budget of the intent to\ngrant such an award. Such notice shall include information regarding how\nthe eligible applicant meets criteria established pursuant to this\nsection.\n 3. Notwithstanding subdivisions one and two of this section, sections\none hundred twelve and one hundred sixty-three of the state finance law,\nor any other inconsistent provision of law, of the funds available for\nexpenditure pursuant to this section, thirty million dollars may be\nallocated and distributed by the commissioner without a competitive bid\nor request for proposal process for grants to residential health care\nfacilities for the purpose of restructuring such facilities to achieve a\nreduction in certified inpatient bed capacity. Consideration relied upon\nby the commissioner in determining the allocation and distribution of\nthese funds shall include, but not be limited to, the following: (a) the\nexisting and projected need for inpatient nursing home beds and\ncommunity based long-term care services in the area in which a facility\napplying for such funds is located; (b) the quality of the care being\nprovided by the facility; (c) the ability of the facility to access, in\na timely manner, alternative sources of funding, including other sources\nof government funding; and (d) whether additional funding would permit\nthe facility to achieve greater stability and efficiency in the delivery\nof needed health care services.\n 4. Notwithstanding the provisions of subdivision one of this section,\nthe commissioner and the director of the dormitory authority may award,\nin an amount not to exceed twenty-five million dollars of the health\ncare system improvement capital grant program allocated in any given\nfiscal year, grants to eligible applicants without the process set forth\nin subdivision one of this section to provide necessary restructuring\nsupport to hospitals for transition to a new reimbursement methodology.\n (a) With respect to the process for the awarding of such funds without\nthe process set forth in subdivision one of this section, the\ncommissioner and director of the dormitory authority shall determine\neligible awardees based solely on an applicant's ability to meet the\nfollowing criteria:\n (i) have a loss of operations for each of the three consecutive\npreceding years as evidence by audited financial statements; and\n (ii) have a negative fund balance or negative equity position in each\nof the three preceding years as evidence by audited financial\nstatements; and\n (iii) have a current ratio of less than 1:1 for each of three\nconsecutive preceding days; or\n (iv) be deemed to the satisfaction of the commissioner to be a\nprovider that fulfills an unmet health care need for the community as\ndetermined by the department through consideration of the volume of\nMedicaid and medically indigent patients served; the service volume and\nmix, including but not limited to maternity, pediatrics, trauma,\nbehavior and neurobehavioral, ventilator, and emergency room volume;\nand, the significance of the institution in ensuring health care\nservices access as measured by market share within the region; or\n (v) be deemed to the satisfaction of the commissioner to have incurred\noperating losses resulting from the implementation of reimbursement rate\nreforms and other reductions enacted by a chapter of the laws of two\nthousand nine, to provide for the continued financial viability of the\napplicant.\n (b) Prior to an award being granted to an eligible applicant without a\ncompetitive bid or request for proposal process, the commissioner and\nthe director of the dormitory authority shall notify the chair of the\nsenate finance committee, the chair of the assembly ways and means\ncommittee and the director of the budget of the intent to grant such an\naward. Such notice shall include information regarding how the eligible\napplicant meets criteria established pursuant to this section.\n 5. (a) Notwithstanding subdivision one, two or three of this section,\nthe commissioner, with the approval of the director of the budget, may\nexpend funds for the purpose of providing cost effective increased\naccess to the capital markets, including but not limited to through the\nuse of mortgage insurance, credit enhancement, letters of credit, bond\ninsurance or other arrangements, for capital projects that are\ndetermined to meet one or more of the following objectives for hospitals\nlicensed under this article:\n (i) securing financing for facilities in a manner that will improve\nthe operation and efficiency of the health care delivery system within\nthe state;\n (ii) securing financing for facilities in a manner consistent with the\nobjectives and determinations of the Commission on Health Care\nFacilities in the Twenty-First Century, established pursuant to chapter\nsixty-three of the laws of two thousand five;\n (iii) securing financing for facilities in a manner that will help\nrightsize the state's acute care infrastructure, including reducing\ninpatient capacity, downsizing, restructuring, and closing facilities;\n (iv) securing financing for facilities in a manner that advances the\nreform of the long-term care system, including through rightsizing and\nproviding community-based services;\n (v) securing financing for facilities in a manner that improves the\nprimary and ambulatory care system including programs undertaken in\ncollaboration with a local development corporation incorporated pursuant\nto sections four hundred one and one thousand four hundred eleven of the\nnot-for-profit corporation law to foster the development and expansion\nof high quality, cost effective primary health care services and related\nambulatory care and ancillary services benefiting medically underserved\ncommunities, principally in the state, to increase access of community\nresidents to such services, to improve the health status of such\nresidents and to lessen the burdens of government and act in the public\ninterest; and\n (vi) such other objectives as the commissioner deems appropriate to\neffectuate the intent of this subdivision.\n (b) The commissioner may transfer funds to other state agencies or\npublic authorities, with the approval of the director of budget, to\neffectuate the purposes of this subdivision.\n 6. Notwithstanding any contrary provision of this section, sections\none hundred twelve and one hundred sixty-three of the state finance law,\nor any other contrary provision of law, subject to available\nappropriations, funds available for expenditure pursuant to this section\nmay be distributed by the commissioner without a competitive bid or\nrequest for proposal process for grants to general hospitals and\nresidential health care facilities for the purpose of facilitating\nclosures, mergers and restructuring of such facilities in order to\nstrengthen and protect continued access to essential health care\nresources. Provided however, that to the extent practicable, the\ncommissioner shall award such grants equitably among health planning\nregions of the state. Prior to an award being granted to an eligible\napplicant without a competitive bid or request for proposal process, the\ncommissioner shall notify the chair of the senate finance committee, the\nchair of the assembly ways and means committee and the director of the\ndivision of budget of the intent to grant such an award. Such notice\nshall include information regarding how the eligible applicant meets\ncriteria established pursuant to this section.\n 7. Notwithstanding subdivisions one and two of this section, sections\none hundred twelve and one hundred sixty-three of the state finance law,\nor any other inconsistent provision of law, of the funds available for\nexpenditure pursuant to this section, the commissioner may allocate and\ndistribute, without a competitive bid or request for proposal process,\ngrants to accountable care organizations under article twenty-nine-E of\nthis chapter for the purpose of promoting their formation and improving\ntheir operation. Consideration relied upon by the commissioner in\ndetermining the allocation and distribution of these funds shall\ninclude, but not be limited to, the need for and capacity of the\naccountable care organization to accomplish the purposes of article\ntwenty-nine-E of this chapter in the area to be served.\n 8. On or before December first, two thousand fourteen, the department\nshall issue a report to the governor, the temporary president of the\nsenate and the speaker of the assembly regarding grants made pursuant to\nthis section to support health information technology.\n