§ 2825-e. Health care facility transformation program: statewide II.
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 funding in support of
capital projects, debt retirement, working capital or other non-capital
projects that facilitate health care transformation activities
including, but not limited to, merger, consolidation, acquisition or
other activities intended to create financially sustainable systems of
care or preserve or expand essential health care services. Grants shall
not be available to support general operating expenses. 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 dormitory 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 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, and community-based health care providers as defined
in subdivision three of this section for 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 the 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 new applications for projects
not funded under section twenty-eight hundred twenty-five-d 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
five hundred million dollars of the funds appropriated for this program
shall be awarded without a competitive bid or request for proposal
process for grants to health care providers (hereafter "applicants").
Provided, however, that a minimum of seventy-five 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; a primary care provider or a home care provider certified
or licensed pursuant to article thirty-six of this chapter; or other
purposes and community-based providers designated by the commissioner
pursuant to information obtained pursuant to subdivision four-a of this
section. 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. Notwithstanding subdivision two of this section or any inconsistent
provision of law to the contrary, and upon approval of the director of
the budget, the commissioner may award up to three hundred million
dollars of the funds made available pursuant to this section for
unfunded project applications submitted in response to the request for
applications number 1607010255 issued by the department on July
twentieth, two thousand sixteen pursuant to section twenty-eight hundred
twenty-five-d of this article, provided however that the provisions of
subdivision three of this section shall apply.

4-a. Authorized amounts to be awarded pursuant to applications
submitted in response to the request for application number 1607010255
shall be awarded no later than May first, two thousand seventeen. The
commissioner shall not issue a request for application for the remaining
appropriated amounts on or before June first, two thousand seventeen to
allow stakeholder, community, and legislative input regarding program
eligibility, award criteria and the process by which the remaining funds
will be awarded.

5. In determining awards for eligible applicants under this section,
the commissioner shall consider stakeholder, community, and legislative
input pursuant to subdivision four-a of this section, and other criteria
including, but not limited to:

(a) The extent to which the proposed project will contribute to the
integration of health care services or the 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 project and identified
community need;

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

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

(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 community
engagement has shaped such project; and

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

6. 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 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.

7. The department shall provide a report on a quarterly basis to the
chairs of the senate finance, assembly ways and means, and 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.