New York Laws
Article 28 - Hospitals
2825-H - Health Care Facility Transformation Program: Statewide V.

§ 2825-h. Health care facility transformation program: statewide V. 1.
A statewide health care facility transformation program is hereby
established within the department for the purpose of transforming,
redesigning, and strengthening quality health care services in alignment
with statewide and regional health care needs, and in the ongoing
pandemic response. The program shall also provide funding, subject to
lawful appropriation, in support of capital projects, debt retirement,
working capital or other non-capital projects that facilitate furthering
such transformational goals.

2. The commissioner shall enter into an agreement with the president
of the dormitory authority of the state of New York pursuant to section
sixteen hundred eighty-r of the public authorities law, which shall
apply to this agreement, subject to the approval of the director of the
division of the budget, for the purposes of the distribution and
administration of available funds pursuant to such agreement, and made
available pursuant to this section and appropriation. Such funds may be
awarded and distributed by the department for grants to health care
providers including but not limited to, hospitals, residential health
care facilities, adult care facilities licensed under title two of
article seven of the social services law, diagnostic and treatment
centers licensed or granted an operating certificate under this chapter,
clinics, including but not limited to those licensed or granted an
operating certificate under this chapter or the mental hygiene law,
children's residential treatment facilities licensed under 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, behavioral health facilities licensed or granted an
operating certificate pursuant to articles thirty-one and thirty-two of
the mental hygiene law, home care providers certified or licensed under
article thirty-six of this chapter, primary care providers, hospices
licensed or granted an operating certificate pursuant to article forty
of this chapter, community-based programs funded under the office of
mental health, the office of addiction services and supports, the office
for people with developmental disabilities, or through local
governmental units as defined under article forty-one of the mental
hygiene law, independent practice associations or organizations,
residential facilities or day program facilities licensed or granted an
operating certificate under article sixteen of the mental hygiene law,
and midwifery birth centers established pursuant to this chapter. A copy
of such agreement, and any amendments thereto, shall be provided by the
department 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 after such agreement is
finalized. 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
four hundred ninety 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, as defined in
subdivision two of this section. Awards made pursuant to this
subdivision shall provide funding for capital projects, debt retirement,
working capital or other non-capital projects to the extent lawful
appropriation and funding is available, to build innovative,
patient-centered models of care, increase access to care, to improve the
quality of care and to ensure financial sustainability of health care

providers, and develop capacity in underserved areas of the state. For
the purposes of this section, the development of capacity in underserved
areas shall include new construction and renovation projects in areas
determined to be underserved by the department.

4. 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 technological and telehealth transformation projects, which
shall include projects related to improving cyber security, and which
may also include unfunded project applications submitted in response to
a request for applications issued by the department pursuant to
subdivision six of section twenty-eight hundred twenty-five-g of this
article.

5. Selection of awards made by the department pursuant to subdivisions
three and four of this section shall be contingent on an evaluation
process acceptable to the commissioner and approved by the director of
the division of the budget. Disbursement of awards shall be conditioned
on the awardee achieving certain process and performance metrics and
milestones as determined by 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.

6. 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 health care provider as defined in subdivision
two of this section, 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.

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