Section 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  general  hospital"  shall  mean  a  not-for-profit
  general hospital, 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  general  hospitals, 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 general hospitals;
    (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  general  hospitals  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 general hospitals;
    (d)  for  assurances that participating general hospitals 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 general
  hospital; 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 general hospital 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.
    4.  To  the  extent  funds  are available from a participating general
  hospital 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  general
  hospital  pursuant  to the terms of any financing agreement, mortgage or
  loan document permitting the recovery  from  the  participating  general
  hospital  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 general hospital 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, 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 deposits to the pool, loans made  from  the
  pool,  investment  income,  and the balance on hand as of the end of the
  month for each such quarter.
    6. The commissioner is authorized, with the assistance and cooperation
  of the authority, to  provide  a  program  of  technical  assistance  to
  participating general hospitals.