Capital restructuring financing program

§ 2825. Capital restructuring financing program. 1. A capital
restructuring financing program is hereby established under the joint
administration of the commissioner and the president of the dormitory
authority of the state of New York for the purpose of enhancing the
quality, financial viability and efficiency of New York's health care
delivery system by transforming the system into a more rational
patient-centered care system that promotes population health and
improved well-being for all New Yorkers. The issuance of any bonds or
notes hereunder shall further be subject to the approval of the director
of the division of the budget, and any projects funded through the
issuance of bonds or notes hereunder shall be approved by the New York
state public authorities control board, as required under section
fifty-one of the public authorities law.

2. For the period April first, two thousand fourteen through March
thirty-first, two thousand twenty-one, funds made available for
expenditure pursuant to this section may be distributed by the
commissioner and the president of the authority, in consultation with
the commissioners of the office of mental health, office for people with
developmental disabilities and office for alcoholism and substance abuse
services, as applicable, for:

(a) capital grants to general hospitals, residential health care
facilities, diagnostics and treatment centers, and clinics licensed
pursuant to this chapter or the mental hygiene law, assisted living
programs, primary care providers, and home care providers certified or
licensed pursuant to article thirty-six of this chapter (collectively
"applicants") that qualify for payments under the delivery system reform
incentive payment program (DSRIP), in which case funding under this
paragraph shall be requested in such applicant's DSRIP application. Such
capital grant projects include, but are not limited to; closures,
mergers, restructuring, improvements to infrastructure, development of
primary care service capacity, development of telehealth infrastructure,
the promotion of integrated delivery systems that strengthen and protect
continued access to essential health care services and other
transformational projects as determined by the commissioner and the
president of the authority.

(b) capital grants to general hospitals, residential health care
facilities, diagnostic and treatment centers, and clinics licensed
pursuant to this chapter or the mental hygiene law, assisted living
programs, primary care providers, home care providers, certified or
licensed pursuant to article thirty-six of this chapter (collectively
"applicants") that are non-qualifying and non-participating applicants
under paragraph (a) of this subdivision, for capital non-operational
works or purposes that support the purposes set forth in this section.
Such capital grant projects include, but are not limited to; closures,
mergers, restructuring, improvements to infrastructure, development of
primary care service capacity, development of telehealth infrastructure,
the promotion of integrated delivery systems that strengthen and protect
continued access to essential health care services.

3. The commissioner and the president of the authority shall enter
into an agreement, subject to approval by the director of the budget and
subject to section sixteen hundred eighty-r of the public authorities
law, as added by a chapter of the laws of two thousand fourteen, for the
purposes of awarding, distributing, and administering the funds made
available pursuant to this section. To the extent practicable, funds
shall be awarded regionally in proportion to the applications received
from the request for application issued by or before May first, two
thousand fifteen. Projects awarded under sections twenty-eight hundred
twenty-five-a and twenty-eight hundred twenty-five-b of this article
shall not be eligible for grants or awards made available under this
section.

(a) For capital grant projects under paragraph (a) of subdivision two
of this section, the evaluation of applications shall be submitted
pursuant to the process described in paragraph (b) of subdivision twenty
of section twenty-eight hundred seven of this article; provided,
however, that such capital grant projects shall not be subject to review
by the federal Centers for Medicare and Medicaid services.

(b) For monies allocated under paragraph (b) of subdivision two of
this section:

(i) the department shall post on its website, for a period of no less
than thirty days:

(A) the process by which such applications shall be reviewed;

(B) the criteria by which such applications shall be judged; and

(C) a list of approved and denied applications subsequent to such
determination.

(ii) the evaluation of applications shall be reviewed by the
department, pursuant to a process to be determined by the department.
Applications shall then be subject to review by the panel established
pursuant to paragraph (b) of subdivision twenty of section twenty-eight
hundred seven of this article, which shall submit its recommendations to
the commissioner for final determination. Determination of awards for
funds allocated under paragraph (b) of subdivision two of this section,
shall include, but not be limited to the following criteria:

(A) eligibility requirements for applicants;

(B) statewide geographic distribution of funds;

(C) minimum and maximum amounts of funding to be awarded under the
program;

(D) the relationship between the project proposed by an applicant and
identified community need;

(E) the extent to which the applicant has access to alternative
financing;

(F) the extent to which the proposed project furthers the purposes set
forth in this section;

(G) the extent that the proposed project furthers the development of
primary care;

(H) the extent to which the proposed project benefits Medicaid
enrollees and uninsured individuals;

(I) the extent to which the proposed project addresses potential risk
to patient safety and welfare;

(J) the extent that the proposed project involves an applicant that
receives or has applied for a temporary rate adjustment pursuant to
applicable regulations; and

(K) the extent to which the proposed project will contribute to the
long term sustainability of the applicant.

The commissioner shall provide a report on a quarterly basis to the
chairs of the senate finance, assembly ways and means, senate health and
assembly health committees. Such reports shall be submitted no later
than sixty days after the close of the quarter, and shall conform to the
reporting requirements of subdivision twenty of section twenty-eight
hundred seven of this article, as applicable.