BILL NUMBER: S8827A

SPONSOR: RIVERA
 
TITLE OF BILL:

An act in relation to the definition of safety-net providers

 
PURPOSE OR GENERAL IDEA OF BILL:

To clarify eligibility considerations for general hospitals that are
safety net providers as it relates to potential appropriations in the
New York state fiscal year 2022-2023 Aid to Localities Budget bill
(Chapter 53 of the Laws of 2022).

 
SUMMARY OR PROVISIONS:

Section 1 provides for the purpose of determining if a provider can
evince severe financial distress as proposed in fiscal year 2022-2023
Aid to Localities bill (Chapter 53 of the Laws of 2022) the Department
of Health shall consider criteria including but not limited to a general
hospital that: has 2 months or less worth of reserves to cover antic-
ipated expenses; is an enhanced safety net hospital; is at risk of
              

defaulting on existing debt obligations; or needs to undergo a major
capital improvement for which the hospital is not able to obtain financ-
ing for, and does not have the reserves to cover the costs of such capi-
tal improvement.

Section 2 provides for the effective date.

 
JUSTIFICATION:

Many New York state based general hospitals experience financial
disruptions and cash management issues, which can make providing
adequate care to vulnerable New Yorkers extremely difficult. In fiscal
year 2022-23 funding for safety-net providers was included in New York
State budget bills S.8003D and A.9003D. However, determinations for
eligibility are not explicitly defined, which could ultimately lead to
certain categories of hospitals being left out of the allocation of
appropriations. This bill intends to clarify the considerations DOH must
make as it relates to determining potential eligibility of general
hospitals that are safety-net providers.

This will help to ensure broad categories of hospitals are eligible for
funding in the 2022-2023 New York state budget.

 
PRIOR LEG ,LATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None noted.

 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as
Chapter 53 of the laws of 2022 making appropriations for the support of
government, takes effect.