§ 2825-C — Essential health care provider support program

§ 2825-c. Essential health care provider support program. 1.\nNotwithstanding section one hundred sixty-three of the state finance\nlaw, or any inconsistent provision of law to the contrary, within\namounts appropriated, funds may be allocated and distributed by the\ncommissioner without a competitive bid or request for proposal process,\nfor grants to essential health care providers to support debt\nretirement, capital projects or non-capital projects that facilitate\nhealth care transformation, including mergers, consolidation, and\nrestructuring activities intended to create a financially sustainable\nsystem of care. Grants shall not be available to support general\noperating expenses. For purposes of this section, an essential health\ncare provider is a hospital or hospital system that, in the discretion\nof the commissioner, offers health care services within a defined\ngeographic region where such services would otherwise be unavailable to\nthe population of such region.\n 2. The commissioner shall award grants for projects consistent with\nthe purposes of this section. Eligible applicants shall meet the\nfollowing criteria:\n (a) (i) have a loss from operations for each of the three consecutive\npreceding years as evidenced by audited financial statements;\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 (b) be deemed by the commissioner to be a provider that fulfills or\nwill fulfill an unmet need for acute inpatient, outpatient, primary or\nresidential health care services in a defined geographic region where\nsuch services would be otherwise unavailable to the population of such\nregion.\n 3. Such awards shall be distributed pursuant to criteria, including\nbut not limited to:\n (a) the extent to which the proposed project will contribute to the\nlong term sustainability of the applicant or preservation of essential\nhealth care services in a community;\n (b) the extent to which the proposed project or purpose is aligned\nwith delivery system reform incentive payment ("DSRIP") program goals\nand objectives;\n (c) consideration of geographic distribution of funds;\n (d) the relationship between the proposed project and an identified\ncommunity need;\n (e) the extent to which the applicant has access to alternative\nfinancing;\n (f) the extent to which the proposed project furthers the development\nof primary care;\n (g) the extent to which the proposed project benefits Medicaid\nenrollees and uninsured individuals;\n (h) the extent to which the applicant has engaged the community\naffected by the proposed project and the manner in which the community\nengagement has shaped such project; and\n (i) the extent to which the proposed project addresses potential risk\nto patient safety and welfare.\n 4. Disbursement of awards made pursuant to this section shall be\nconditioned on the awardee achieving certain process and performance\nmetrics and milestones as determined in the sole discretion of the\ncommissioner. Such metrics and milestones shall be structured to ensure\nthat the health care transformation and provider sustainability goals of\nthe project are achieved, and such metrics and milestones shall be\nincluded in grant disbursement agreements or other contractual documents\nas required by the commissioner.\n 5. The department shall provide a report on a quarterly basis to the\nchairs of the senate finance, assembly ways and means, senate health and\nassembly health committees. Such reports shall be submitted no later\nthan sixty days after the close of the quarter, and shall include, for\neach award, the name of the applicant, a description of the project or\npurpose, the amount of the award, disbursement date, and status of\nachievement of process and performance metrics and milestones pursuant\nto subdivision four of this section.\n