Section 364-J-2. Transitional supplemental payments

1. As used in this
  section, "covered provider" shall mean a voluntary not-for-profit health
  care provider that is any of the following:
    (a) a freestanding diagnostic  and  treatment  center  licensed  under
  article  twenty-eight  of  the  public  health  law that qualifies for a
  distribution pursuant to section twenty-eight hundred  seven-p  of  such
  article,  or  section  seven of chapter four hundred thirty-three of the
  laws of nineteen hundred ninety-seven, or receives funding under section
  three hundred thirty-three of the federal public health services act for
  health care for the homeless; or
    (b) a freestanding diagnostic and treatment center which  operates  an
  approved  program under the prenatal care assistance program established
  pursuant to article twenty-five of the public health law; or
    (c) a facility licensed  under  article  twenty-eight  of  the  public
  health  law that is sponsored by a university or dental school which has
  been granted an operating certificate pursuant to  article  twenty-eight
  of the public health law to provide dental services; or
    (d)  a  freestanding  family  planning  clinic  licensed under article
  twenty-eight of the public health law.
    2. (a) Notwithstanding paragraphs (b) and (h) of  subdivision  two  of
  section  twenty-eight  hundred  seven  of  the  public  health  law, the
  commissioner of health shall make supplemental payments of nine  million
  eight  hundred  twenty-four  thousand  dollars  ($9,824,000), to covered
  providers described in subdivision one of this section who are qualified
  providers as described in paragraph (a) of  subdivision  three  of  this
  section,  based  on  adjustments to fee-for-service rates for the period
  February first through March thirty-first, two  thousand  two  and  nine
  million  eight hundred twenty-four thousand dollars ($9,824,000) for the
  period October first through December thirty-first, two thousand two and
  four million nine hundred twelve thousand dollars ($4,912,000)  for  the
  period  October  first through December thirty-first, two thousand three
  and an additional amount of four million nine  hundred  twelve  thousand
  dollars  ($4,912,000)  for  the  period  October  first through December
  thirty-first,  two  thousand  three  and  nine  million  eight   hundred
  twenty-four  thousand  dollars  ($9,824,000)  for the period April first
  through June thirtieth,  two  thousand  five,  and  nine  million  eight
  hundred twenty-four thousand dollars ($9,824,000) for the period October
  first through December thirty-first, two thousand six, and an additional
  nine million eight hundred twenty-four thousand dollars ($9,824,000) for
  the  period  October  first  through December thirty-first, two thousand
  six,  and  nine  million  eight  hundred  twenty-four  thousand  dollars
  ($9,824,000) for the period October first through December thirty-first,
  two thousand seven, as medical assistance payments for services provided
  pursuant  to  this  title  for  persons  eligible  for federal financial
  participation under title XIX of the  federal  social  security  act  to
  reflect  additional  costs  associated  with the transition to a managed
  care environment, and nine million eight  hundred  twenty-four  thousand
  dollars  ($9,824,000)  for  the  period  October  first through December
  thirty-first, two  thousand  eight,  and  seven  million  three  hundred
  eighty-eight  thousand dollars ($7,388,000) for the period October first
  through December thirty-first, two thousand nine, as medical  assistance
  payments  for  services  provided  pursuant  to  this  title for persons
  eligible for federal financial participation  under  title  XIX  of  the
  federal  social security act to reflect additional costs associated with
  the operation  of  electronic  health  record  systems  that  meet  such
  standards  as  may  be  established by the commissioner of health. There
  shall be no local share in these payments. The director  of  the  budget
  shall   allocate   the  non-federal  share  of  such  payments  from  an

  appropriation for the miscellaneous special revenue fund - 339 community
  service  provider  assistance  program  account  for  the  two  thousand
  one--two  thousand  two state fiscal year for adjustments for the period
  February first through March thirty-first, two thousand two. Adjustments
  for  the  period  October  first,  two  thousand  two  through  December
  thirty-first, two thousand two shall be within amounts appropriated  for
  the   two  thousand  two--two  thousand  three  state  fiscal  year  and
  adjustments for the period October first,  two  thousand  three  through
  December  thirty-first,  two  thousand  three  shall  be  within amounts
  appropriated for the two thousand three--two thousand four state  fiscal
  year  and adjustments for the non-federal share of the additional amount
  of four million nine hundred twelve thousand  dollars  ($4,912,000)  for
  such  period  shall  be  allocated by the director of the budget from an
  appropriation  for  maintenance  undistributed  general  fund  community
  projects  fund  -  007  account for the two thousand three--two thousand
  four state fiscal year. The director of the budget  shall  allocate  the
  non-federal  share  of  adjustments  for  the  period  April  first, two
  thousand  five  through  June  thirtieth,  two  thousand  five  from  an
  appropriation  for  the maintenance undistributed general fund community
  projects fund - 007 - cc account for the two thousand four--two thousand
  five state fiscal year. The director of the budget  shall  allocate  the
  non-federal  share  of  adjustments  for  the  period October first, two
  thousand six through December thirty-first, two  thousand  six  from  an
  appropriation for the maintenance undistributed, general fund, community
  projects  fund  - 007-cc account for the two thousand five--two thousand
  six state fiscal year. The director of the  budget  shall  allocate  the
  non-federal  share  of the additional adjustments for the period October
  first, two thousand six through December thirty-first, two thousand  six
  from  such  funds as may be made available from an appropriation for the
  maintenance undistributed,  general  fund,  community  projects  fund  -
  007-cc account for the two thousand six--two thousand seven state fiscal
  year. The director of the budget shall allocate the non-federal share of
  the adjustments for the period October first, two thousand seven through
  December  thirty-first, two thousand seven from an appropriation for the
  medical assistance program, general fund, local assistance account - 001
  for the two thousand seven--two thousand eight state  fiscal  year.  The
  director  of  the  budget  shall  allocate  the non-federal share of the
  adjustments for the period October first,  two  thousand  eight  through
  December  thirty-first, two thousand eight from an appropriation for the
  medical assistance program, general fund, local assistance account - 001
  for the two thousand eight--two thousand nine  state  fiscal  year.  The
  director  of  the  budget  shall  allocate  the non-federal share of the
  adjustments for the period October  first,  two  thousand  nine  through
  December  thirty-first,  two thousand nine from an appropriation for the
  medical assistance program, general fund, local assistance account - 001
  for the two thousand nine--two thousand  ten  state  fiscal  year.  Such
  adjustments  to fee for service rates shall not be subject to subsequent
  adjustment or reconciliation. Alternatively, such payments may  be  made
  as aggregate payments to eligible providers.
    (a-1)   Notwithstanding  the  provisions  of  paragraph  (a)  of  this
  subdivision, for facilities licensed under article twenty-eight  of  the
  public  health  law  that are sponsored by a university or dental school
  which has been granted an  operating  certificate  pursuant  to  article
  twenty-eight of the public health law and which provides dental services
  as  its  principal  mission,  two  hundred  twenty-four thousand dollars
  ($224,000) in the aggregate for use pursuant to this  section  shall  be
  allocated   for   distribution   to  such  facilities  pursuant  to  the
  methodology  described  in  paragraph  (b)  of   subdivision   two   and

  subparagraph  (i)  of  paragraph  (b) of subdivision four of section two
  thousand eight hundred seven-p of the public  health  law  for  services
  provided  for  the period February first, two thousand two through March
  thirty-first, two thousand two to persons eligible for federal financial
  participation  under  title  XIX  of  the  federal  social security act,
  provided, however, that the amount paid pursuant to this  paragraph  for
  each  such facility shall equal the facility's proportional share of the
  total nominal payment amounts calculated under this section of all  such
  facilities  multiplied  by  the total funds allocated for such payments.
  There shall be no local share in these payments.  The  director  of  the
  budget  shall  allocate  the  non-federal share of such payments from an
  appropriation for the miscellaneous special revenue fund - 339 community
  service  provider  assistance  program  account  for  the  two  thousand
  one--two  thousand  two  state  fiscal year. Such adjustments to fee for
  service  rates  shall  not  be  subject  to  subsequent  adjustment   or
  reconciliation.  Alternatively,  such  payments may be made as aggregate
  payments to eligible providers.
    (a-2) (i) Notwithstanding the provisions  of  paragraph  (a)  of  this
  subdivision,  for  facilities licensed under article twenty-eight of the
  public health law that are sponsored by a university  or  dental  school
  which  has  been  granted  an  operating certificate pursuant to article
  twenty-eight of the public health law and which provides dental services
  as its principal  mission,  two  hundred  twenty-four  thousand  dollars
  ($224,000)  in  the  aggregate  of  the  amount appropriated for the two
  thousand two--two thousand three state fiscal year for use  pursuant  to
  this  section  shall  be  allocated for the period October first through
  December thirty-first, two thousand two and one hundred twelve  thousand
  dollars  ($112,000)  in the aggregate of the amount appropriated for the
  two  thousand  three--two  thousand  four  state  fiscal  year,  and  an
  additional  amount  of one hundred twelve thousand dollars ($112,000) in
  the aggregate for use pursuant to this section shall  be  allocated  for
  the  period  October  first  through December thirty-first, two thousand
  three and two hundred twenty-four thousand  dollars  ($224,000)  in  the
  aggregate  of  the  amount  appropriated  for the two thousand four--two
  thousand five state fiscal year shall be allocated for the period  April
  first,  two thousand five through June thirtieth, two thousand five, and
  two hundred twenty-four thousand dollars ($224,000) in the aggregate  of
  the  amount  appropriated  for  the  two thousand five--two thousand six
  state fiscal year shall be allocated for the period October  first,  two
  thousand  six  through  December  thirty-first, two thousand six, and an
  additional two hundred twenty-four thousand dollars  ($224,000)  in  the
  aggregate  of  the  amount  appropriated  for  the two thousand six--two
  thousand seven state fiscal year  shall  be  allocated  for  the  period
  October  first,  two  thousand  six  through  December thirty-first, two
  thousand six, and two hundred twenty-four thousand dollars ($224,000) in
  the aggregate of the amount appropriated for the two thousand seven--two
  thousand eight state fiscal year  shall  be  allocated  for  the  period
  October  first,  two  thousand  seven through December thirty-first, two
  thousand seven, and two hundred twenty-four thousand dollars  ($224,000)
  in  the  aggregate  of  the  amount  appropriated  for  the two thousand
  eight--two thousand nine state fiscal year shall be  allocated  for  the
  period  October first, two thousand eight through December thirty-first,
  two  thousand  eight  and  two  hundred  twenty-four  thousand   dollars
  ($224,000)  in  the  aggregate  of  the  amount appropriated for the two
  thousand nine--two thousand ten state fiscal year shall be allocated for
  the  period  October  first,  two   thousand   nine   through   December
  thirty-first,  two  thousand  nine  for  distribution to such facilities
  pursuant to subparagraphs (ii) and (iii) of this paragraph.  Adjustments

  for the non-federal share of the additional amount of one hundred twelve
  thousand  dollars  ($112,000) for the period October first, two thousand
  three  through  December  thirty-first,  two  thousand  three  shall  be
  allocated  by  the  director  of  the  budget  from an appropriation for
  maintenance undistributed general fund community  projects  fund  -  007
  account for the two thousand three--two thousand four state fiscal year.
  The  non-federal  share  of  adjustments for the period April first, two
  thousand five  through  June  thirtieth,  two  thousand  five  shall  be
  allocated  by  the  director of the budget from an appropriation for the
  maintenance undistributed general fund community  projects  fund  -  007
  account  for the two thousand four--two thousand five state fiscal year.
  The non-federal share of adjustments for the period October  first,  two
  thousand  six  through  December thirty-first, two thousand six shall be
  allocated by the director of the budget from an  appropriation  for  the
  maintenance  undistributed,  general  fund,  community  projects  fund -
  007-cc account for the two thousand five--two thousand six state  fiscal
  year. The non-federal share of the additional adjustments for the period
  October  first,  two  thousand  six  through  December thirty-first, two
  thousand six shall, subject to the availability of funds,  be  allocated
  by  the  director  of  the  budget  from  the  medical  assistance local
  assistance appropriation for the two thousand  six--two  thousand  seven
  state  fiscal  year.  The  non-federal  share of the adjustments for the
  period October first, two thousand seven through December  thirty-first,
  two thousand seven shall be allocated by the director of the budget from
  an appropriation for the medical assistance program, general fund, local
  assistance  account - 001 for the two thousand seven--two thousand eight
  state fiscal year. The non-federal share  of  the  adjustments  for  the
  period  October first, two thousand eight through December thirty-first,
  two thousand eight shall be allocated by the director of the budget from
  an appropriation for the medical assistance program, general fund, local
  assistance account - 001 for the two thousand eight--two  thousand  nine
  state  fiscal  year.  The  non-federal  share of the adjustments for the
  period October first, two thousand nine through  December  thirty-first,
  two  thousand nine shall be allocated by the director of the budget from
  an appropriation for the medical assistance program, general fund, local
  assistance account - 001 for the two  thousand  nine--two  thousand  ten
  state fiscal year.
    (ii)  Forty  percent shall be allocated for equal distribution to such
  facilities, reduced by the amount, if any, that a  distribution  exceeds
  forty  percent  of  a  facility's  uncompensated care need as defined in
  paragraph (b) of subdivision two of section two thousand  eight  hundred
  seven-p   of  the  public  health  law.  Any  funds  allocated  but  not
  distributed in accordance with this subparagraph shall be added to those
  amounts distributed  in  accordance  with  subparagraph  (iii)  of  this
  paragraph.
    (iii)  Sixty  percent, plus any funds allocated and not distributed in
  accordance with subparagraph (ii) of this paragraph, shall be  allocated
  for   distribution  to  such  facilities  pursuant  to  the  methodology
  described in paragraph (b) of subdivision two and  subparagraph  (i)  of
  paragraph  (b) of subdivision four of section two thousand eight hundred
  seven-p of the public health law, provided,  however,  that  the  amount
  paid  pursuant to this allocation for each such facility shall equal the
  facility's proportional share  of  the  total  nominal  payment  amounts
  calculated  under  this section of all such facilities multiplied by the
  total funds allocated for such payments.
    (iv) There shall be no local share in these payments.
    (b) Notwithstanding the provisions of subdivision one of section three
  hundred sixty-eight-a of this title, there shall be paid to each  social

  services  district  the full amount expended on behalf of the department
  of health for medical assistance furnished pursuant to the provisions of
  this section, after first deducting therefrom any federal funds properly
  received or to be received on account thereof.
    3.  (a)  For  periods  prior  to  January first, two thousand eight, a
  covered provider described in subdivision one of this section  shall  be
  qualified  to  receive  a  supplemental  payment  only  if its number of
  medicaid visits for patient care services in the base year described  in
  subparagraph (ii) of paragraph (b) of this subdivision equals or exceeds
  twenty-five  percent  of  its  total  number  of visits for patient care
  services and its number of medicaid visits for patient care services for
  medicaid managed care enrollees equals or exceeds three percent  of  its
  total number of medicaid visits during the base year. For periods on and
  after January first, two thousand eight, a covered provider described in
  subdivision  one  of  this  section  shall  be  qualified  to  receive a
  supplemental payment only if it has  in  place  during  such  period  an
  operational electronic health record system that meets such standards as
  may  be  established  by  the  commissioner  of health and its number of
  medicaid visits for patient care services in the base year described  in
  subparagraph (ii) of paragraph (b) of this subdivision equals or exceeds
  twenty-five  percent  of  its  total  number  of visits for patient care
  services during the base year or its number of medicaid visits  combined
  with  its  number  of  uninsured visits for patient care services in the
  base year described in  subparagraph  (ii)  of  paragraph  (b)  of  this
  subdivision  equals  or  exceeds  thirty  percent of its total number of
  visits for patient care services during the base year.
    (b) (i) For periods prior to January first, two thousand  eight,  each
  qualified  provider described in paragraph (a) of this subdivision shall
  receive a supplemental payment equal  to  such  provider's  proportional
  share  of the total funds allocated pursuant to this section, based upon
  the ratio of its visits from medical assistance recipients  enrolled  in
  managed  care  during the base year to the total number of visits to all
  such qualified providers by medical assistance  recipients  enrolled  in
  managed  care  during  the  base  year. For periods on and after January
  first,  two  thousand  eight,  each  qualified  provider  described   in
  paragraph  (a)  of this subdivision shall receive a supplemental payment
  equal to such provider's proportional share of the total funds allocated
  pursuant to this section, based  upon  the  ratio  of  its  visits  from
  medical  assistance  recipients during the base year to the total number
  of visits from medical  assistance  recipients  to  all  such  qualified
  providers during the base year.
    (ii)  For  periods  prior  to  January  first, two thousand eight, for
  purposes of the calculation described in this subdivision, the base year
  will be two thousand, and the commissioner of health shall utilize  data
  as  reported  on  the  2000  AHCF-1  cost  report initially submitted by
  covered providers to  the  department  of  health  on  or  about  August
  seventeenth,  two  thousand one. For periods on and after January first,
  two thousand eight, for purposes of the calculation  described  in  this
  subdivision,  the  base  year will be two years prior to the grant year,
  and the commissioner of health shall utilize data as reported on  AHCF-1
  cost  report  submitted by covered providers to the department of health
  for such base year.
    4. Payments made pursuant to this section shall constitute  additional
  reimbursement  to  qualified  providers  and shall not be used to reduce
  levels of other funding provided to qualified providers by  governmental
  agencies.
    5.  (a)  The  commissioner  of  health  shall  make medical assistance
  payments to qualified providers from funds made  available  pursuant  to

  the  provisions  of  this  section  contingent  upon  the receipt of all
  federal approvals necessary and subject to the availability  of  federal
  financial  participation  under title XIX of the federal social security
  act  for  the  transitional  supplemental  payments.  In  the event such
  federal approval is  not  received  prior  to  March  thirty-first,  two
  thousand  two,  for  adjustments  for  the  period  February  first, two
  thousand two through March thirty-first, two thousand two and  prior  to
  October  first,  two thousand two for adjustments for the period October
  first, two thousand two through December thirty-first, two thousand  two
  and  prior  to October first, two thousand three for adjustments for the
  period October first, two thousand three through December  thirty-first,
  two  thousand  three,  and prior to October first, two thousand five for
  adjustments for the period April first, two thousand five  through  June
  thirtieth,  two  thousand five, and prior to October first, two thousand
  six for adjustments for the  period  October  first,  two  thousand  six
  through  December  thirty-first,  two thousand six, and prior to October
  first, two thousand seven for adjustments for the period October  first,
  two  thousand  seven  through December thirty-first, two thousand seven,
  and prior to October first, two thousand eight for adjustments  for  the
  period  October first, two thousand eight through December thirty-first,
  two thousand eight, and prior to October first, two  thousand  nine  for
  adjustments  for  the  period  October  first, two thousand nine through
  December thirty-first, two thousand nine,  the  commissioner  of  health
  shall make medical assistance payments to qualified providers consisting
  of  the  state  share  amount available for purposes of this section and
  apportioned in accordance  with  subdivisions  two  and  three  of  this
  section.  In the event such federal approval is denied, such state share
  amount payments shall be deemed to be grants to such qualified providers
  and such qualified providers shall not be eligible to receive any  other
  payments pursuant to this section.
    (b)  The  commissioner  of  health  shall take all steps necessary and
  shall use best efforts to secure federal financial  participation  under
  title  XIX of the social security act, for the purposes of this section,
  including the prompt submission of appropriate amendments to  the  title
  XIX state plan.