Section 2952. Rural health network development grant program

To the extent
  of funds available therefor, the sum  of  seven  million  dollars  shall
  annually  be  available for periods prior to January first, two thousand
  three, and up to  six  million  five  hundred  thirty  thousand  dollars
  annually  for  the  period  January  first,  two  thousand three through
  December thirty-first, two thousand four, up to seven million  sixty-two
  thousand dollars for the period January first, two thousand five through
  December  thirty-first,  two  thousand six annually, up to seven million
  sixty-two thousand dollars annually for the period  January  first,  two
  thousand  seven  through December thirty-first, two thousand ten, and up
  to one million seven hundred sixty-six thousand dollars for  the  period
  January  first,  two  thousand  eleven  through  March thirty-first, two
  thousand eleven, shall be available to the commissioner from funds  made
  available  pursuant  to  section  twenty-eight  hundred  seven-l of this
  chapter for grants pursuant to this section.
    1. The commissioner shall establish a rural health network development
  grant program for the purpose of assisting community based  health  care
  providers,  consumers  and  organizations in rural areas to promote more
  effective health care delivery through  the  coordination,  development,
  planning, implementation and operation of rural health networks pursuant
  to  this  title. Such grants shall support activities and organizational
  costs including, but not limited to, the recruitment of qualified health
  care  professionals,  the  performance  of  feasibility   studies,   the
  development  of affiliation agreements among rural health providers, the
  development of managed care capacities, the expansion and integration of
  public and preventive health services into community based primary  care
  systems,  the integration and expansion of prehospital emergency medical
  services and related consulting and legal fees.
    2. To be eligible to receive grant funding pursuant to  this  section,
  the  applicant  shall  submit  a  network  plan  to the commissioner for
  approval; the network  plan  shall  identify  network  participants  and
  indicate  how  the  members  or participants of the rural health network
  intend to respond to the health care needs of the  rural  area,  improve
  access  to  and  the  quality  of  care  for residents of the community,
  promote  the  coordination  of  resources  among  providers  and  reduce
  duplication  of  services  while  achieving  cost  and other operational
  efficiencies.
    3. a. The commissioner shall make grants to rural health networks,  or
  rural  health care providers planning to develop a rural health network.
  The network plan submitted by a rural health  network  or  rural  health
  care  providers  planning  to form a network for grant funds pursuant to
  this  section  shall  be  consistent  with  guidelines  issued  by   the
  commissioner,  in  consultation  with  the  New  York state rural health
  council and the legislative  commission  on  the  development  of  rural
  resources.  Such  guidelines  shall include, but need not be limited to,
  the duration of rural health network grants, appropriate funding  levels
  and  criteria  for  providing  an appropriate geographic distribution of
  grantees; provided, however, that the amount of any such grant shall  be
  based  on  the  scope and nature of the proposed activities described in
  such plan and that the quality  of  any  such  plan  complies  with  the
  conditions  for approval pursuant to paragraph b of subdivision three of
  this section.
    b. The commissioner may require revisions or amendments to the initial
  network plan prior to approval for funding, or periodic updates from  an
  applicant  to  reflect  the current status of a network's development or
  operation and to assure that the plan is implemented in accordance  with
  its  approved terms. In approving grants the commissioner shall consider
  the following:

    (i) The specific objectives and description of the  proposed  network,
  including  considerations of the existing health care services currently
  being delivered within the rural area, and the unmet health  care  needs
  of the community;
    (ii)  The  degrees  to  which the plan demonstrates enhanced costs and
  service delivery efficiencies and access to necessary and  high  quality
  health care services by rural residents;
    (iii)  The  degree  to  which  stated  objectives and the scope of the
  network plan may reasonably be implemented and achieved  using  existing
  and projected resources;
    (iv)  The  degree  to  which  information  sharing, communication, and
  cooperation between health care providers, human  service  entities  and
  consumers would be fostered;
    (v)  The contribution the network would make toward the identification
  and development of innovative delivery systems;
    (vi) The degree to which management and continuity of  care  would  be
  fostered and improved;
    (vii)  The  degree to which participating providers are represented on
  governing bodies of the network;
    (viii) The degree to which consumers within the area served or  to  be
  served  by  the  network  are  made  aware  of  and  have  an  effective
  opportunity to provide input in the creation and on-going development of
  a network plan; and
    (ix) The degree to which providers  within  the  area  served  by  the
  network  are  made  aware  of  and  have  an  effective  opportunity  to
  participate in or become a member of the network.
    c. The commissioner shall act on such application within  ninety  days
  after its receipt. In the event waivers of any regulations are requested
  by  an  applicant, the commissioner shall have an additional thirty days
  to act upon such application.
    4. The commissioner or his or her duly authorized  representative  may
  provide  or contract to provide technical assistance in the creation and
  implementation  of  rural  health  networks  and  to  promote  community
  organization,   collaboration   and   communication   in  rural  network
  development across the state. The funding for any  such  contract  shall
  not  be  made available from funds provided for purposes of this section
  by section twenty-eight hundred seven-l of this chapter.
    5. If the commissioner determines that  a  grant  is  being  used  for
  purposes  other  than those which are in conformity with this title, the
  commissioner may withdraw his or her approval of the project and require
  repayment of all or part of such grant to the  state.  The  commissioner
  shall cause reports to be prepared and submitted for each project by the
  grantees  at  such  times  and in such manner as are consistent with the
  purposes of this title.
    6. a. The commissioner or his or her  duly  authorized  representative
  may  also,  promote  appropriate  active  state supervision necessary to
  promote state action immunity under the federal antitrust laws,  inspect
  or  request  additional  documentation  to verify that a network plan is
  implemented in accordance with its approved  terms  as  they  relate  to
  antitrust activity.
    b.  The  commissioner  shall  review a network plan and all agreements
  between participating providers of a network organized pursuant  to  the
  not-for-profit  corporation law at any time with respect to their effect
  on competition, access, and quality of care, may seek the advice of  the
  attorney  general and may require amendments to such agreements where he
  or she determines that the benefits  of  anti-competitive  activity  are
  outweighed by any disadvantages.

    c. The commissioner may revoke, limit or annul approval to implement a
  network  plan,  or  portions  thereof,  after  review and a hearing, for
  failure  to  implement  such  plan  in  accordance  with  its  terms  as
  appropriate for the promotion of state action immunity under the federal
  antitrust laws.
    d. The commissioner shall, at the request of any rural health network,
  review  network  agreements with respect to their effect on competition,
  access and quality of care, may seek the advice of the attorney general,
  and may require amendments to such agreements where he or she determines
  that the benefits of anticompetitive  activity  are  outweighed  by  any
  disadvantage.
    7.   For  the  purpose  of  promoting  maximum  effectiveness  in  the
  utilization of state and local monies  and  innovative  approaches,  the
  commissioner  is  authorized  to waive, modify or suspend the respective
  provisions of rules and regulations promulgated pursuant to this chapter
  if  the  commissioner  determines  that  such  waiver,  modification  or
  suspension  is necessary for the successful implementation of this title
  and provided that the commissioner determines that  the  health,  safety
  and general welfare of people receiving health care will not be impaired
  as  a  result  of such waiver, modification, or suspension. Such waiver,
  modification or suspension may be  granted  for  up  to  two  years.  In
  addition,  upon the request of a rural health network organized pursuant
  to  the  not-for-profit  corporation  law  and  approved   pursuant   to
  subdivision  fourteen  of  section  twenty-eight  hundred  one-a of this
  chapter thereto,  through  its  network  plan  or  its  amendments,  the
  commissioner  is  authorized to permit such rural health network to make
  applications or fulfill regulatory requirements on behalf of members  of
  the  network  for  purposes of, but not limited to, certificate of need,
  quality assurance, reimbursement,  and  professional  credentialing  and
  privileging.
    8.  The  commissioner  shall  consult  with  federal, state, and local
  officials with respect to securing  their  cooperation  in  coordinating
  related   programs   and   regulatory  waivers  and  shall  provide  the
  legislature with recommendations to facilitate such efforts.
    9. Notwithstanding any inconsistent provision of law, the commissioner
  may approve a rural health network, to  receive  directly  reimbursement
  for  the planning and coordination of services including but not limited
  to such experimental and other payment methods as global budget, pooling
  arrangements, or capitation payments  for  whole  or  in-part  inpatient
  hospital services and ambulatory care services provided by the component
  entities  of  the  network.  Reimbursement  including  payments  made by
  governmental agencies shall be subject to  the  approval  of  the  state
  director  of  the  budget  and  to the availability of federal financial
  participation pursuant to title XIX of the federal social  security  act
  in  expenditures made for eligible patients. The commissioner may impose
  such terms and conditions as necessary and appropriate  for  receipt  of
  such funds.