§ 2807-i. Service and quality improvement grants. 1. Grants to
facilitate cooperative ventures for sharing administrative, management
and operational services. a. Notwithstanding any inconsistent provision
of law to the contrary, within amounts available therefor, the
commissioner shall make grants pursuant to this subdivision to eligible
applicants to facilitate cooperative ventures for sharing
administrative, management and operational services among general
hospitals and other health care providers. Funded projects shall include
two or more hospitals and may also include other health care providers
in coordination with those hospitals. Funded projects shall be designed
to demonstrate the extent to which such cooperative arrangements would
result in a reduction in costs to the facilities involved.

b. In order to be eligible to receive a grant under this subdivision,
applicants shall prepare and submit to the commissioner a proposal at
such time, in such manner and containing such information as the
commissioner may require, including:

(i) a statement that such providers desire to negotiate and enter into
a voluntary agreement;

(ii) a description of the nature and scope of the activities
contemplated in the cooperative agreement;

(iii) a description of the financial arrangement between the providers
that are parties to the agreement;

(iv) a description of the geographic area generally served by the
providers;

(v) a description of the anticipated benefits and advantages to
providers and to health care consumers;

(vi) a description of how the proposal will be coordinated with the
regional health plan; and

(vii) any other information determined appropriate by the
commissioner.

c. In awarding grants under this subdivision, the commissioner shall
assure that there is a sufficiently representative geographic and size
distribution of grantees, including urban, rural and suburban grantees.

d. Amounts provided under a grant awarded under this subdivision shall
only be used for the planning of cooperative ventures and shared
services.

e. Grantees shall submit reports to the commissioner in such form and
at such times as the commissioner may by regulation require, for the
purpose of evaluating the operations and results of such program.

f. The commissioner in evaluating proposals pursuant to this section
shall give primary consideration to the financial condition of
applicants; provided however, that an applicant's financial condition
shall not be the sole grounds for approval or rejection.

2. Management information systems grants. Notwithstanding any
inconsistent provision of law to the contrary, within amounts available
therefor, the commissioner shall make grants pursuant to this
subdivision to general hospitals, not to exceed two hundred thousand
dollars per hospital, for the purposes of expanding and improving their
information management capabilities. In order to be eligible for grants
pursuant to this subdivision, general hospitals which have experienced
operating losses for the past two consecutive years, provided such
operating losses have been at least two percent of such hospital's
operating expenses, shall submit proposals which demonstrate that:

a. hospital management, productivity, and operations would be enhanced
by improvements to the hospital's current management information system
capabilities;

b. the cost of providing services would be contained or patient access
to care or the quality of patient care would be improved;

c. such hospital's clinical, management and finance information
systems would be integrated; and

d. cost finding and cost accounting capabilities would be enhanced.

3. Continuous quality improvement grants. Grants shall be awarded to
general hospitals, within amounts available therefor, to establish
programs to improve quality assurance activities. Such programs shall
seek to promote and encourage continuous quality improvement by
integrating traditional medical staff review functions with risk
management and infection control activities. Grants shall be used to
support the following:

a. the establishment of a mission statement, an accompanying long term
strategic plan and allocation of institutional resources which reflect
the institution's commitment to continuous quality improvement;

b. the establishment of quality improvement activities which will
enhance all institutional processes, including clinical, managerial and
support functions;

c. activities which support a multidisciplinary collaborative approach
to quality improvement;

d. integration of management information systems to improve health
care delivery; and

e. an educational program on continuous quality improvement to inform
staff of the institution's mission and plan for quality.

4. Equitable distribution. Funding shall as far as practicable be
equitably distributed among applicants in urban, suburban and rural
areas of the state.