Health care facility transformation program: Kings county project

§ 2825-a. Health care facility transformation program: Kings county
project. 1. A Kings county health care facility transformation 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 strengthening and protecting continued access to
health care services in communities. The program shall provide capital
funding in support of projects that replace inefficient and outdated
facilities as part of a merger, consolidation, acquisition or other
significant corporate restructuring activity intended to create a
financially sustainable system of care. The issuance of any bonds or
notes hereunder shall 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. 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, for the purposes of awarding, distributing, and
administering the funds made available pursuant to this section. Such
funds may be distributed by the commissioner and the president of the
authority for capital grants to general hospitals, residential health
care facilities, diagnostic and treatment centers, primary care
providers, and home care providers, certified or licensed pursuant to
article thirty-six of this chapter, for capital non-operational works or
purposes that support the purposes set forth in this section. A copy of
such agreement, and any amendments thereto, shall be provided to the
chair of the senate finance committee, the chair of the assembly ways
and means committee, and the director of the division of budget no later
than thirty days prior to the release of a request for applications for
funding under this program. Projects awarded under section twenty-eight
hundred twenty-five of this article shall not be eligible for grants or
awards made available under this section.

3. Notwithstanding section one hundred sixty-three of the state
finance law or any inconsistent provision of law to the contrary, up to
seven hundred million dollars of the funds appropriated for this program
shall be awarded without a competitive bid or request for proposal
process for capital grants to health care providers (hereafter
"applicants") located in the county of Kings.

(a) Eligible applicants shall serve communities whose residents are
experiencing significant levels of health care disparities and health
care needs compared to other communities within the county of Kings as
evidenced by:

(i) a high number of Medicaid enrollees and uninsured individuals;

(ii) elevated blood lead level rates among children, high rates of
diabetes, high blood pressure, asthma, obesity, infant death or
premature birth, heart failure, behavioral health conditions, substance
abuse;

(iii) low levels of income, high rates of unemployment, distressed
housing conditions, and poor nutritional status;

(iv) other risk factors as determined by the commissioner and the
president of the authority; and

(b) Such eligible applicant shall:

(i) (A) have a loss from operations for each of the three consecutive
preceding years as evidenced by audited financial statements;

(B) have a negative fund balance or negative equity position in each
of the three preceding years as evidenced by audited financial
statements; and

(C) have a current ratio of less than 1:1 for each of three
consecutive preceding years; or

(ii) be deemed by the commissioner and president of the authority to
be a provider that fulfills or will fulfill an unmet health care need
for acute inpatient, outpatient, primary or residential health care
services in a community.

4. In determining awards for eligible applicants under this section,
the commissioner and the president of the authority shall consider
criteria including, but not limited to:

(a) the extent to which the proposed capital project will contribute
to the long term sustainability of the applicant or preservation of
essential health services in the community or communities served by the
applicant;

(b) the extent to which the proposed project or purpose is aligned
with delivery system reform incentive payment ("DSRIP") program goals
and objectives;

(c) the relationship between the proposed capital project and
identified community need;

(d) the extent that the proposed capital project furthers the
development of primary care and other outpatient services;

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

(f) the extent to which the applicant has engaged the community
affected by the proposed capital project and the manner in which
community engagement has shaped such capital project; and

(g) the extent to which the proposed capital project addresses
potential risk to patient safety and welfare.

5. The department 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.