§ 2825-c. Essential health care provider support program. 1.
Notwithstanding section one hundred sixty-three of the state finance
law, or any inconsistent provision of law to the contrary, within
amounts appropriated, funds may be allocated and distributed by the
commissioner without a competitive bid or request for proposal process,
for grants to essential health care providers to support debt
retirement, capital projects or non-capital projects that facilitate
health care transformation, including mergers, consolidation, and
restructuring activities intended to create a financially sustainable
system of care. Grants shall not be available to support general
operating expenses. For purposes of this section, an essential health
care provider is a hospital or hospital system that, in the discretion
of the commissioner, offers health care services within a defined
geographic region where such services would otherwise be unavailable to
the population of such region.

2. The commissioner shall award grants for projects consistent with
the purposes of this section. Eligible applicants shall meet the
following criteria:

(a) (i) have a loss from operations for each of the three consecutive
preceding years as evidenced by audited financial statements;

(ii) have a negative fund balance or negative equity position in each
of the three preceding years as evidenced by audited financial
statements; and

(iii) have a current ratio of less than 1:1 for each of three
consecutive preceding years; or

(b) be deemed by the commissioner to be a provider that fulfills or
will fulfill an unmet need for acute inpatient, outpatient, primary or
residential health care services in a defined geographic region where
such services would be otherwise unavailable to the population of such
region.

3. Such awards shall be distributed pursuant to criteria, including
but not limited to:

(a) the extent to which the proposed project will contribute to the
long term sustainability of the applicant or preservation of essential
health care services in a community;

(b) the extent to which the proposed project or purpose is aligned
with delivery system reform incentive payment ("DSRIP") program goals
and objectives;

(c) consideration of geographic distribution of funds;

(d) the relationship between the proposed project and an identified
community need;

(e) the extent to which the applicant has access to alternative
financing;

(f) the extent to which the proposed project furthers the development
of primary care;

(g) the extent to which the proposed project benefits Medicaid
enrollees and uninsured individuals;

(h) the extent to which the applicant has engaged the community
affected by the proposed project and the manner in which the community
engagement has shaped such project; and

(i) the extent to which the proposed project addresses potential risk
to patient safety and welfare.

4. Disbursement of awards made pursuant to this section shall be
conditioned on the awardee achieving certain process and performance
metrics and milestones as determined in the sole discretion of the
commissioner. Such metrics and milestones shall be structured to ensure
that the health care transformation and provider sustainability goals of
the project are achieved, and such metrics and milestones shall be
included in grant disbursement agreements or other contractual documents
as required by the commissioner.

5. The department shall provide a report on a quarterly basis to the
chairs of the senate finance, assembly ways and means, senate health and
assembly health committees. Such reports shall be submitted no later
than sixty days after the close of the quarter, and shall include, for
each award, the name of the applicant, a description of the project or
purpose, the amount of the award, disbursement date, and status of
achievement of process and performance metrics and milestones pursuant
to subdivision four of this section.