Authorizes the establishment of a corporation to organize a voluntary network of hospitals in Brooklyn

Summary of provisions

Section 1. Creates a new section 2824 of the public health law, Corporation; Brooklyn hospital network.

1. Intent.

2. Definitions. Of note is that "Participating hospital" includes any hospital located in Brooklyn, excluding hospitals operated by the New York City health and hospitals corporation, that elects to participate and enters into an agreement with the corporation

3. Allows the DOH commissioner to establish a corporation, with the authority needed to organize a network of hospitals in Brooklyn, including Downstate and all private hospitals that elect to participate, for the following purposes, but not in direct service provision:

*(a) improving the overall health of the covered population served;

*(b) promoting the efficient delivery of health care services;

*(c) negotiating contracts with third party payers;

*(d) assuring opportunities for training medical professionals;

*(e) receiving funds from any source and disbursing funds as appropriate and as permissible under federal law, following appropriation by the Legislature;

*(f) establishing a process to solicit public input to help inform the activities under this section; and

*(g) conducting such other activities that may be necessary and appropriate to serve the objectives of this section.

4. The corporation is a not for profit corporation organized and operated exclusively for the purposes set forth in this section, and performing an essential governmental function. Membership is 13 directors, appointed with the consent of the Senate: 7 by the Governor; 2 each by the temporary president of the senate, and the

speaker of the assembly; 1 each by the minority leader of the senate and the minority leader of the assembly. All are required to have expertise in relevant areas including health care finance, bankruptcy, corporate restructuring, community and economic development, health care delivery and health care insurance, or be members of the public who reside in Brooklyn. None can be directors, officers or employees of hospitals or immediate family members of directors, officers or employees of hospitals. Members shall be appointed for terms of three years. The Governor selects the chair. They receive only expenses for official responsibilities. Quorum is seven directors. The board can hire an executive director.

5. Powers. In addition to powers under law:

*(i) to direct placement of SUNY Downstate students among participating hospitals, with the approval of the SUNY Downstate Medical Schools and in accordance with the requisite accreditation organizations;

*(ii) to assist DOH in development and implementation of a plan for federal Delivery System Reform Incentive Program ("DSRIP") funds;

*(iii) to seek the input of the legislature in developing the DSRIP plan;

*(iv) to post the DSRIP plan on a publicly accessible website and provide written copies to the legislature 30 days prior to implementation;

*(v) to monitor each participating hospital's performance against such performance benchmarks and ensure the implementation of the plan as necessary by requiring participating hospitals to take appropriate action;

*(vi) to disburse DSRIP funds pursuant to such DSRIP plan and in accordance with federal law, but only after appropriation by the Legislature;

*(vii) to prepare quarterly reports on the activities of the corporation on a publicly accessible website;

*(viii) to establish a process to solicit public input to help inform the activities of the corporation, including the development and implementation of the DSRIP plan with at least three public meetings, and public and private consultations with health and hospital stakeholders in Brooklyn;

*(ix) to develop a transition strategy designed to support the long term sustainability of the health care system in Brooklyn in anticipation of the expiration of this section; and

*(x) to conduct such other activities as necessary and appropriate to serve the objectives of this section, provided that no DSRIP plan or transitional plan shall require directly or indirectly the reduction of beds at Downstate hospital to an amount that is fewer than 250 beds, or the closure of the SUNY Downstate Medical Schools.

The corporation is required to create an advisory committee.

6. requires the DOH commissioner to issue to participating hospitals operating certificates that list the corporation as a co operator of each of the health facilities of such hospitals. The corporation can enter into agreements with participating hospitals under which the corporation, acting as a co operator of each such participating hospital, shall have such powers as are consistent with the public purpose as set forth in this section, and shall be deemed to be acting as a public hospital. Allows the corporation or a participating hospital to drop out of the corporation with 180 days notice. 7 and 8. Non-liability provisions for the state and member hospitals, and action immunity for rationalizing health care in Brooklyn.

§ 2. Amends subdivision 20 of section 2807 of the public health law, to authorize agreements between DOH and the new corporation.

§ 3. Amends subdivision 21 of section 2807 of the public health law, to allow the funding of the nonfederal share of Medicaid funds for this plan, subject to appropriation by the Legislature.

§ 4. Makes technical changes for chronology in the opening paragraph of section 6 of part Q of chapter 56 of the laws of 2013, amending the education law and the public health law, relating to funding to SUNY Downstate Medical Center and directing the restructuring of hospital.

Existing law

New bill.

Justification

This act is needed to restructure and preserve troubled health care institutions in Brooklyn.

Fiscal implications

To be determined.

Effective date

Immediate, sunsetting in six years.