Section 2818. Health care efficiency and affordability law of New Yorkers (HEAL NY) capital grant program

1. The commissioner and the director of
  the dormitory authority of the state of New York  shall  enter  into  an
  agreement,  subject  to  the approval of the director of the budget, for
  the purpose of administering the funds  available  to  the  health  care
  efficiency and affordability law for New Yorkers (HEAL NY) capital grant
  program  as  authorized  under  section  sixteen hundred eighty-j of the
  public authorities law, in a manner that will encourage improvements  in
  the  operation  and efficiency of the health care delivery system within
  the state. A copy of such agreement, and any amendments  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  criteria,  to  be  developed  by  the
  commissioner and the director of the  authority,  to  be  considered  in
  their evaluation of applications and determination of awards, including,
  but not limited to:
    (a)  determination of eligible applicants, provided that such eligible
  applicants shall include entities representative  of  any  part  of  the
  health care delivery system;
    (b) consideration of 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; and
    (e)  the  extent  to  which  the  applicant  has access to alternative
  financing.
    Such agreement 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 no later than thirty days prior to the
  scheduled approval of the first bond issuance for  the  program  by  the
  public  authorities  control  board.  The  authority  shall  also report
  quarterly to such chairpersons on the awards made through  the  program,
  including  the  name  of the applicant, a description of the project and
  the amount of the award.
    The commissioner and the director of the authority shall award  grants
  to  eligible  applicants  after due public notice of the availability of
  funds and  through  a  process  which  ensures  to  the  maximum  extent
  practicable  and  where  appropriate, competition among such applicants,
  consistent with the following requirements:  the  commissioner  and  the
  director  of  the  authority shall publish the priorities and goals that
  are to be achieved through grant funding, and regularly  provide  public
  notice  of the availability of funding. These priorities and goals shall
  be consistent with objectives and determinations of  the  Commission  on
  Health  Care facilities in the Twenty-First Century established pursuant
  to a chapter of the laws of two thousand five, provided,  however,  that
  nothing  shall  prohibit  the  commissioner  and  the  director  for the
  authority  from  awarding  grants  prior  to  a  final  report  by   the
  commission.  For each project that will be recommended for approval, the
  commissioner and the director of the authority shall report 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 how the project
  meets the priorities, goals and criteria established  pursuant  to  this
  section.
    Contracts  awarded  to  eligible  applicants  shall  require that work
  performed thereunder shall be deemed "public work" and  subject  to  and
  preformed  in  accordance with articles eight, nine and ten of the labor
  law and the contractors performing such work  shall  also  be  deemed  a

  state  agency  for the purpose of article fifteen-A of the executive law
  and subject to the provisions of such article.
    2.  Notwithstanding the provisions of subdivision one of this section,
  the commissioner and the director of the dormitory authority may  award,
  in an amount not to exceed twenty-five percent of the health care system
  improvement  capital  grant program allocation in any given fiscal year,
  grants  to  eligible  applicants  without  the  process  set  forth   in
  subdivision  one  of  this  section. With respect to the process for the
  awarding of such funds without the process set forth in subdivision  one
  of  this  section,  the  commissioner  and the director of the dormitory
  authority  shall  determine  eligible  awardees  based  solely   on   an
  applicant's ability to meet the following criteria:
    (i)  Have  a  loss  from  operations for each of the three consecutive
  preceding years as evidenced by audited financial statements; and
    (ii) Have a negative fund balance or negative equity position in  each
  of   the  three  preceding  years  as  evidenced  by  audited  financial
  statements; and
    (iii) Have a current  ratio  of  less  than  1:1  for  each  of  three
  consecutive preceding years; or
    (iv)  Be  deemed  to  the  satisfaction  of  the  commissioner to be a
  provider that fulfills an unmet health care need for  the  community  as
  determined  by  the  department  through  consideration of the volume of
  Medicaid and medically indigent patients served; the service volume  and
  mix,  including  but  not  limited  to  maternity,  pediatrics,  trauma,
  behavioral and neurobehavioral, ventilator, and emergency  room  volume;
  and,  the  significance  of  the  institution  in  ensuring  health care
  services access as measured by market share within the region.
    (c) Prior to an award being granted to an eligible applicant without a
  competitive bid or request for proposal process,  the  commissioner  and
  the  director  of  the dormitory authority shall notify the chair of the
  senate finance committee, the chair  of  the  assembly  ways  and  means
  committee  and  the  director of the division of budget of the intent to
  grant such an award. Such notice shall include information regarding how
  the eligible applicant  meets  criteria  established  pursuant  to  this
  section.
    3.  Notwithstanding subdivisions one and two of this section, sections
  one hundred twelve and one hundred sixty-three of the state finance law,
  or any other inconsistent provision of law, of the funds  available  for
  expenditure  pursuant  to  this  section,  thirty million dollars may be
  allocated and distributed by the commissioner without a competitive  bid
  or  request  for  proposal process for grants to residential health care
  facilities for the purpose of restructuring such facilities to achieve a
  reduction in certified inpatient bed capacity. Consideration relied upon
  by the commissioner in determining the allocation  and  distribution  of
  these funds shall include, but not be limited to, the following: (a) the
  existing  and  projected  need  for  inpatient  nursing  home  beds  and
  community based long-term care services in the area in which a  facility
  applying  for  such  funds is located; (b) the quality of the care being
  provided by the facility; (c) the ability of the facility to access,  in
  a timely manner, alternative sources of funding, including other sources
  of  government  funding; and (d) whether additional funding would permit
  the facility to achieve greater stability and efficiency in the delivery
  of needed health care services.
    4. Notwithstanding the provisions of subdivision one of this  section,
  the  commissioner and the director of the dormitory authority may award,
  in an amount not to exceed twenty-five million  dollars  of  the  health
  care  system  improvement  capital  grant program allocated in any given
  fiscal year, grants to eligible applicants without the process set forth

  in subdivision one of this section to  provide  necessary  restructuring
  support to hospitals for transition to a new reimbursement methodology.
    (a) With respect to the process for the awarding of such funds without
  the   process  set  forth  in  subdivision  one  of  this  section,  the
  commissioner and director of the  dormitory  authority  shall  determine
  eligible  awardees  based  solely  on an applicant's ability to meet the
  following criteria:
    (i) have a loss of  operations  for  each  of  the  three  consecutive
  preceding years as evidence by audited financial statements; and
    (ii)  have a negative fund balance or negative equity position in each
  of  the  three  preceding  years  as  evidence  by   audited   financial
  statements; and
    (iii)  have  a  current  ratio  of  less  than  1:1  for each of three
  consecutive preceding days; or
    (iv) be deemed to  the  satisfaction  of  the  commissioner  to  be  a
  provider  that  fulfills  an unmet health care need for the community as
  determined by the department through  consideration  of  the  volume  of
  Medicaid  and medically indigent patients served; the service volume and
  mix,  including  but  not  limited  to  maternity,  pediatrics,  trauma,
  behavior  and  neurobehavioral,  ventilator,  and emergency room volume;
  and, the  significance  of  the  institution  in  ensuring  health  care
  services access as measured by market share within the region; or
    (v) be deemed to the satisfaction of the commissioner to have incurred
  operating losses resulting from the implementation of reimbursement rate
  reforms  and  other  reductions  enacted by a chapter of the laws of two
  thousand nine, to provide for the continued financial viability  of  the
  applicant.
    (b) Prior to an award being granted to an eligible applicant without a
  competitive  bid  or  request for proposal process, the commissioner and
  the director of the dormitory authority shall notify the  chair  of  the
  senate  finance  committee,  the  chair  of  the assembly ways and means
  committee and the director of the budget of the intent to grant such  an
  award.  Such notice shall include information regarding how the eligible
  applicant meets criteria established pursuant to this section.
    5. (a) Notwithstanding subdivision one, two or three of this  section,
  the  commissioner,  with the approval of the director of the budget, may
  expend funds for the  purpose  of  providing  cost  effective  increased
  access  to the capital markets, including but not limited to through the
  use of mortgage insurance, credit enhancement, letters of  credit,  bond
  insurance   or   other  arrangements,  for  capital  projects  that  are
  determined to meet one or more of the following objectives for hospitals
  licensed under this article:
    (i) securing financing for facilities in a manner  that  will  improve
  the  operation  and efficiency of the health care delivery system within
  the state;
    (ii) securing financing for facilities in a manner consistent with the
  objectives  and  determinations  of  the  Commission  on   Health   Care
  Facilities  in the Twenty-First Century, established pursuant to chapter
  sixty-three of the laws of two thousand five;
    (iii) securing financing for facilities in a  manner  that  will  help
  rightsize  the  state's  acute  care  infrastructure, including reducing
  inpatient capacity, downsizing, restructuring, and closing facilities;
    (iv) securing financing for facilities in a manner that  advances  the
  reform  of  the long-term care system, including through rightsizing and
  providing community-based services;
    (v) securing financing for facilities in a manner  that  improves  the
  primary  and  ambulatory  care  system  including programs undertaken in
  collaboration with a local development corporation incorporated pursuant

  to sections four hundred one and one thousand four hundred eleven of the
  not-for-profit corporation law to foster the development  and  expansion
  of high quality, cost effective primary health care services and related
  ambulatory  care and ancillary services benefiting medically underserved
  communities, principally in the state, to increase access  of  community
  residents  to  such  services,  to  improve  the  health  status of such
  residents and to lessen the burdens of government and act in the  public
  interest; and
    (vi)  such  other  objectives as the commissioner deems appropriate to
  effectuate the intent of this subdivision.
    (b) The commissioner may transfer funds to  other  state  agencies  or
  public  authorities,  with  the  approval  of the director of budget, to
  effectuate the purposes of this subdivision.