§ 2802-a. Transitional care unit demonstration program. 1.
Notwithstanding any other provision of law to the contrary, the
commissioner is authorized to approve up to eighteen general hospitals
within the state to operate transitional care units by and within such
general hospitals. For purposes of this section, "transitional care"
shall mean sub acute care services provided to patients of a general
hospital who no longer require acute care general hospital inpatient
services, but continue to need specialized medical, nursing and other
hospital ancillary services and are not yet appropriate for discharge.

2. In order to receive approval from the commissioner to operate a
transitional care unit and to provide transitional care services, a
general hospital shall file an application on forms prescribed by or
acceptable to the commissioner.

(a) The commissioner shall act upon such applications in a manner
consistent with section twenty-eight hundred two of this article
provided that the commissioner may not waive review and recommendation
by the public health and health planning council. In the public health
and health planning council's evaluation of applications and the
commissioner acting upon such applications, priority shall be given to
applicants who have a memorandum of understanding or other cooperative
agreement with one or more skilled nursing facilities located within
their service area. Further, in the public health and health planning
council evaluating applications and the commissioner acting upon such
applications, consideration shall also be given to the geographic
distribution of applicants throughout the state, so that applications
may be approved from the various geographic regions of the state.

(b) The care provided in a transitional care unit shall be limited in
duration and designed to resolve a patient's sub acute care medical
problems and result in the timely and appropriate discharge of such a
patient to a home, residential health care facility or other appropriate
setting.

(c) In order to be approved to operate a transitional care unit and to
provide transitional care services, an applicant must comply with and
meet all applicable requirements of and conditions of participation
under title XVIII of the federal Social Security Act (Medicare).

3. The commissioner shall report to the governor and the legislature
concerning the implementation of this section and the operation of
transitional care units within three years after the effective date of
this section.