Health facility restructuring program

§ 2815. Health facility restructuring program. 1. Definitions. As used
in this section, the following words and phrases shall have the
following meanings unless a different meaning is plainly required by the
context:

(a) "Agency" shall mean the New York state housing finance agency
created by article three of the private housing finance law.

(b) "Authority" shall mean the dormitory authority of the state of New
York created by title four of article eight of the public authorities
law which has succeeded to the powers, functions and duties of the
medical care facilities finance agency pursuant to chapter eighty-three
of the laws of nineteen hundred ninety-five.

(c) "Participating borrower" shall mean a not-for-profit general
hospital, a not-for-profit diagnostic center, a not-for-profit treatment
center, a not-for-profit residential health care facility or any other
not-for-profit entity in possession of a valid operating certificate
issued pursuant to this article, each organized under the laws of this
state, which has been approved for participation in this program by the
commissioner.

(d) "Restructuring pool" shall mean the health facility restructuring
pool authorized to be established by the authority pursuant to this
section.

2. The authority shall establish the restructuring pool. Funds shall
be transferred by the commissioner to the authority for deposit in the
restructuring pool as authorized pursuant to paragraph (d) of
subdivision one of section twenty-eight hundred seven-l and paragraph
(b) of subdivision nineteen of section twenty-eight hundred seven-c of
this article or any other provision of law. Funds in the restructuring
pool shall be held by the authority pursuant to this section as
custodian, administered by the authority pursuant to an agreement with
the commissioner and invested by the authority in accordance with the
investment guidelines of the authority. All investment income shall be
credited to, and any repayments of loans as hereinafter provided shall
be deposited in, the restructuring pool, and spent therefrom only for
the purposes set forth in this section.

3. The commissioner, the authority and the agency shall enter into an
agreement, subject to the approval of the director of the budget, for
the purpose of administering the funds in the restructuring pool in a
manner that will benefit the public health by encouraging improvements
in the health care delivery system in the state. A copy of such
agreement, and any amendment thereto, shall be provided to the chair of
the senate finance committee, the director of the division of budget,
and the chair of the assembly ways and means committee. Such agreement
shall include, but not be limited to, the following provisions:

(a) for the receipt, management and expenditure of funds held in the
restructuring pool by the authority;

(b) for the development and implementation of business plans for
participating borrowers, addressing the development of service delivery
strategies, including strategies for the formation or strengthening of
networks, affiliations or other business combinations, designed to
provide long-term financial stability within and among participating
borrowers;

(c) for the expenditure or loan of funds by the authority from the
restructuring pool to reimburse the authority or the agency, where
appropriate, for the costs of engaging management, legal or accounting
consultants to identify, develop and implement improved strategies for
one or more participating borrowers for implementing the recommendations
of such consultants, where appropriate, and for the payment of debt
service on bonds, notes or other obligations issued or incurred by the
authority or the agency to fund loans to one or more participating
borrowers;

(d) for assurances that participating borrowers will address the
recommendations of such consultants and furnish the commissioner, the
authority, and where applicable, the agency, with such additional
financial, management, legal and operational information as each may
deem necessary to monitor the performance of a participating borrower;
and

(e) for the agency to obtain funds from the restructuring pool to be
used for the purposes set forth in this section.

3-a. Any participating borrower may apply for restructuring pool funds
to the extent such funds are derived from deposits made pursuant to
paragraph (d) of subdivision one of section twenty-eight hundred seven-l
of this article, provided, however, that, in reviewing such
applications, the commissioner and the authority shall consider the
extent to which the applicant hospital has alternative available sources
of funds, including, but not limited to, funds available through
affiliation agreements with other hospitals or entities.

4. To the extent funds are available from a participating borrower
therefor, expenditures from the restructuring pool shall be repaid to
the restructuring pool from repayments received by the authority, or the
agency where applicable, from a participating borrower pursuant to the
terms of any financing agreement, mortgage or loan document permitting
the recovery from the participating borrower of such expenditures. The
authority shall record and account for all such payments, which shall be
deposited in the restructuring pool.

5. Loans from the restructuring pool shall be made pursuant to an
agreement with the participating borrower specifying the terms thereof,
including repayment terms. The authority shall record and account for
all such repayments, which shall be deposited in the restructuring pool.
The authority shall notify the chair of the senate finance committee,
the director of the division of budget, the chair of the assembly ways
and means committee, the chair of the senate committee on health, and
the chair of the assembly health committee, five days prior to the
making of a loan from the restructuring pool. The authority shall also
report quarterly to such chairpersons on the transactions in the pool,
including but not limited to receipts or deposits to the pool,
disbursements or loans made from the pool, investment income, and the
balance on hand as of the end of the month for each such quarter.

5-a. Notwithstanding anything in this section to the contrary, the
authority is authorized and directed to transfer from the restructuring
pool to the department, upon written request of the director of the
budget and within thirty days thereof, funds repaid by participating
borrowers, and held by the authority relating to restructuring pool
loans funded by amounts transferred to the restructuring pool by the
department or remaining funds in the restructuring pool that were
transferred by the department, not to exceed a total of eighty-three
million five hundred thousand dollars, excepting therefrom amounts
necessary to pay expenses of the authority as provided in the agreement
described in subdivision three of this section. All participating
borrowers shall be obligated in their loan agreement to repay no later
than March thirty-first, two thousand twenty all funds borrowed from the
eighty-three million five hundred thousand dollars transferred by the
department pursuant to this section, to fund these restructuring pool
loans. Further, in respect of these borrowed funds, all participating
borrowers shall be required under the terms of their loan agreement to
immediately upon receipt of quality improvement incentive payments or
additional supplemental assistance initiate repayment of an amount equal
to the quality improvement incentive payments or additional supplemental
assistance not to exceed the amount of such borrowed funds, unless a
waiver or extension of repayment has been approved by the director of
the budget.

6. The commissioner is authorized, with the assistance and cooperation
of the authority, to provide a program of technical assistance to
participating borrowers.