§ 2825-d. Health care facility transformation program: statewide. 1. A
statewide health care facility transformation program is hereby
established under the joint administration of the commissioner and the
president of the dormitory authority of the state of New York for the
purpose of strengthening and protecting continued access to health care
services in communities. The program shall provide capital funding in
support of projects that replace inefficient and outdated facilities as
part of a merger, consolidation, acquisition or other significant
corporate restructuring activity that is part of an overall
transformation plan intended to create a financially sustainable system
of care. The issuance of any bonds or notes hereunder shall be subject
to section sixteen hundred eighty-r of the public authorities law and
the approval of the director of the division of the budget, and any
projects funded through the issuance of bonds or notes hereunder shall
be approved by the New York state public authorities control board, as
required under section fifty-one of the public authorities law.

2. The commissioner and the president of the authority shall enter
into an agreement, subject to approval by the director of the budget,
and subject to section sixteen hundred eighty-r of the public
authorities law, for the purposes of awarding, distributing, and
administering the funds made available pursuant to this section. Such
funds may be distributed by the commissioner and the president of the
authority for capital grants to general hospitals, residential health
care facilities, diagnostic and treatment centers and clinics licensed
pursuant to this chapter or the mental hygiene law, for capital
non-operational works or purposes that support the purposes set forth in
this section. A copy of such agreement, and any amendments thereto,
shall be provided to the chair of the senate finance committee, the
chair of the assembly ways and means committee, and the director of the
division of budget no later than thirty days prior to the release of a
request for applications for funding under this program. Priority shall
be given to projects not funded, in whole or in part, under section
twenty-eight hundred twenty-five or twenty-eight hundred twenty-five-c
of this article. Projects awarded, in whole or part, under sections
twenty-eight hundred twenty-five-a and twenty-eight hundred
twenty-five-b of this article shall not be eligible for grants or awards
made available under this section.

3. Notwithstanding section one hundred sixty-three of the state
finance law or any inconsistent provision of law to the contrary, up to
two hundred million dollars of the funds appropriated for this program
shall be awarded without a competitive bid or request for proposal
process for capital grants to health care providers (hereafter
"applicants"). Provided however that a minimum of thirty million
dollars of total awarded funds shall be made to community-based health
care providers, which, for purposes of this section shall be defined as
a diagnostic and treatment center licensed or granted an operating
certificate under this article; a mental health clinic licensed or
granted an operating certificate under article thirty-one of the mental
hygiene law; an alcohol and substance abuse treatment clinic licensed or
granted an operating certificate under article thirty-two of the mental
hygiene law; primary care providers; or a home care provider certified
or licensed pursuant to article thirty-six of this chapter. Eligible
applicants shall be those deemed by the commissioner to be a provider
that fulfills or will fulfill a health care need for acute inpatient,
outpatient, primary, home care or residential health care services in a
community.

4. In determining awards for eligible applicants under this section,
the commissioner and the president of the authority shall consider
criteria including, but not limited to:

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

(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 capital project and
identified community need;

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

(f) the extent that the proposed capital project furthers the
development of primary care and other outpatient services;

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

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

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

5. 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.

6. 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 five of this section.