§ 2825-f. Health care facility transformation program: statewide III.
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: (a) create financially sustainable systems
of care; (b) preserve or expand essential health care services; (c)
modernize obsolete facility physical plants and infrastructure; (d)
foster participation in alternative payment arrangements including, but
not limited to, contracts with managed care plans and accountable care
organizations; (e) for residential health care facilities, increase the
quality of resident care or experience; or (f) improve health
information technology infrastructure, including telehealth, to
strengthen the acute, post-acute and long-term care continuum. 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 grants to general
hospitals, residential health care facilities, adult care facilities
licensed under title two of article seven of the social services law,
diagnostic and treatment centers and clinics licensed pursuant to this
chapter or the mental hygiene law, children's residential treatment
facilities licensed pursuant to article thirty-one of the mental hygiene
law, assisted living programs approved by the department pursuant to
section four hundred sixty-one-l of the social services law, and
community-based health care providers as defined in subdivision three of
this section for grants in support of 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. 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 twenty-five 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: (a) sixty 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; a substance use disorder treatment clinic licensed or
granted an operating certificate under article thirty-two of the mental
hygiene law; a primary care provider; a clinic licensed or granted an
operating certificate under article sixteen of the mental hygiene law; a
home care provider certified or licensed pursuant to article thirty-six
of this chapter; or hospices licensed or granted an operating
certificate pursuant to article forty of this chapter and (b) forty-five
million dollars of the total awarded funds shall be made to residential
health care facilities.

4. Notwithstanding any inconsistent subdivision of this section or any
other provision of law to the contrary, the commissioner, with the
approval of the director of the budget, may expend up to twenty million
dollars of the funds appropriated for this program pursuant to
subdivision three of this section, not including funds dedicated for
community-based health care providers under paragraph (a) of such
subdivision or for residential health care facilities under paragraph
(b) of such subdivision, for awards made pursuant to paragraph (l) of
subdivision three of section four hundred sixty-one-l of the social
services law, provided that funding shall be prioritized for awards made
pursuant to subparagraph (i) of such paragraph, with remaining funding
available for awards made pursuant to subparagraphs (ii) and (iii) of
such paragraph.

4-a. 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, subject to the
availability of lawful appropriation, 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 17648 issued by the department on January eighth,
two thousand eighteen pursuant to section twenty-eight hundred
twenty-five-e of this article, provided however that the provisions of
subdivisions three and four of this section shall apply.

4-b. Authorized amounts to be awarded pursuant to applications
submitted in response to the request for application number 17648 shall
be awarded no later than September first, two thousand nineteen.

5. In determining awards for eligible applicants under this section,
the commissioner shall consider 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) the 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 to which 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 and
assembly health committees, until such time as the department determines
that the projects that receive funding pursuant to this section are
substantially complete. 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 six of this section.