§ 2808-d. Nursing home quality improvement demonstration program. 1.
Notwithstanding any law, rule or regulation to the contrary, the
commissioner shall, within amounts appropriated and subject to the
availability of federal financial participation, establish a
demonstration program to improve the quality of care for nursing home
residents through the increase or improvement of direct care staff at
nursing homes. In furtherance of such demonstration program the
commissioner shall adjust the Medicaid rates of payment to nursing
homes, selected pursuant to a competitive process, provided, however,
that payments made pursuant to this section to public residential health
care facilities shall be made as grants and shall not be deemed medical
assistance payments. Requests for proposals for eligible projects shall
be issued by the commissioner, provided however that the commissioner
shall not issue any new requests for proposals after December
thirty-first, two thousand four and all awards for subsequent annual
periods shall be distributed on the same proportional basis as the most
recent available distribution. After December thirty-first, two thousand
four, awardees may use funds received for any of the purposes listed in
subdivision two of this section, without restriction.

2. Such eligible projects may include:

(a) an increase in direct care staff, either facility wide or targeted
at a particular area of care or shift;

(b) increased training and education of direct care staff, including
allowing direct care staff to increase their level of licensure relevant
to nursing home care;

(c) efforts to decrease staff turn-over; and

(d) other efforts related to the recruitment and retention of direct
care staff that will effect the quality of care at such facility.

3. The commissioner shall consider, in selecting projects, the
likelihood that such project will improve the care for the residents of
the facility, the financial need of the nursing home and such other
matters as the commissioner deems appropriate.

4. Grants and adjustments to Medicaid rates of payment made pursuant
to this section shall not, in aggregate, exceed sixty-two million five
hundred thousand dollars for the period beginning April first, two
thousand two and ending December thirty-first, two thousand two, and, on
an annualized basis, for each annual period thereafter beginning January
first, two thousand three and ending December thirty-first, two thousand
four, and shall not, in aggregate, exceed forty-six million eight
hundred seventy-five thousand dollars for the period July first, two
thousand five through December thirty-first, two thousand five and shall
not, in aggregate, on an annualized basis, exceed seventy-eight million
one hundred twenty-five thousand dollars for the period January first,
two thousand six through December thirty-first, two thousand six and
sixty-two million five hundred thousand dollars for the period January
first, two thousand seven through June thirtieth, two thousand seven.

5. Adjustments to Medicaid rates of payment made pursuant to this
section shall not be subject to subsequent adjustment or reconciliation.

6. Notwithstanding any other provisions of this section or any other
contrary provision of law, the commissioner may, from funds allocated
pursuant to subparagraph (ii) or (iii) or (iv) of paragraph (u) of
subdivision one of section twenty-eight hundred seven-v of this article,
in calendar year two thousand five, make grants in an aggregate amount
not to exceed twelve million five hundred thousand dollars, to
residential health care facilities in support of projects or programs
designed to improve specific areas of quality of care, as determined by
the commissioner using established measures of such quality of care, and
provided further the commissioner may, from funds allocated pursuant to
paragraph (u) of subdivision one of section twenty-eight hundred seven-v
of this article, for the period January first, two thousand six through
June thirtieth two thousand seven, make grants in an aggregate amount
not to exceed thirty-five million dollars on an annualized basis, to
residential health care facilities that have an arbitrator's decision
rendered before April first, two thousand six, requiring payments
related to the recruitment and retention of direct care staff, including
salary and benefits. Each eligible facility shall receive a payment
amount proportional to the amount each such facility owes pursuant to
the arbitrator's decision compared to such amounts owed by all eligible
facilities.