BILL NUMBER: S327

SPONSOR: RIVERA
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

To expand the definition of safety net providers to encompass more
hospitals as it relates to the New York State fiscal year 2022-2023 Aid
to Localities Budget bill, S8003D and A9003D.

 
SUMMARY OF 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 two 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 LEGISLATIVE HISTORY:

2022 - S8827A (Rivera) - Passed Senate

 
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 a
chapter of the laws of 2022 making appropriations for the support of
government, as proposed in legislative bills numbers S.8003-D and
A.9003-D, takes effect.