Confers authority upon the dormitory authority to finance and construct facilities for organizations undertaking certain projects

The purpose of the bill is to enable DASNY to provide financing and construction services to organizations that either: (a) have been selected to receive capital grants under: (i) the Capital restructuring Financing Program ("CRFP"), or (ii) the Health Care Facility Transformation Program ("HCFTP"); or (b) are participating in State's delivery system reform incentive payment ("DSRIP") program.

Summary of Provisions:

Sections 1 and 2 of the bill would amend the definition of the terms "dormitory" and "educational institution" contained in Public Authorities Law ("PAL") §§ 1676(2)(b) and 1680(1), respectively, to include organizations, including without limitation partnerships, limited partnerships, business corporations, benefit corporations, public corporations, corporations formed other than for profit, limited liability companies, and joint ventures that either:

(a) have been selected to receive capital grants under (i) the CRFP established pursuant to Public Health Law ("PHL") § 282.5 and PAL 1680-r, or (ii) the HCFTP established by PHL §§ 2825-a or 2825-b and PAL § 1680-r; or

(b) are participating in the state's delivery system reform incentive payment (DSRIP) program.

Section 3 of the bill would make it effective immediately

Existing Law:

The CRFP was established in the 2014-2015 State Budget (Ch. 60 L. 2014, Part A, §§ 8, 8-a, 8-b, and 9; Ch 55 L. 2014, Part I, § 43) and amended in the 2015-2016 State Budget (Ch. 60 L 2015, Part J, § 4) The HCFTP was established in the 2015-2016 State Budget (Ch. 60 L 2015, Part 1, § 40 and Part J, §§ 1 and 2).

Prior Legislative History:

This is an amendment to an existing bill (A.6077 / S 4829)

Statement in Support:

The State is presently implementing the DSRIP program, the purpose of which is to fundamentally restructure the health care delivery system using Federal savings generated by the State's Medicaid reforms, pursuant to an agreement between the State and Federal government. Up

to $6.42 billion dollars have been allocated for incentive payments to health care providers, who will be required to collaborate to implement innovative projects focusing on system transformation, clinical improvement and population health improvement. All DSRIP funds will be based on performance linked to achievement of project milestones including process and outcome metrics.

The State has also created two capital grant programs, The CRFP will provide awards totaling up to $1 2 billion over seven years to support capital projects that help strengthen and promote access to essential health services, including projects to improve infrastructure, promote integrated health systems and support the development of additional primary care capacity. The HCFTP will provide additional funding awards totaling $1 billion to strengthen and protect continued access to health care services in Kings county ($700 million) and Oneida county ($300 million)

However, the current bill was submitted before the HCFTP was enacted in this year's budget. This would only enable DASNY to provide financing and construction services to organizations: (1) that have been selected to receive capital grants under the CRFP; or (2) that-are participating in DSRIP. The proposed amendment would therefore enable DASNY to provide such services to organizations that also receive HCFTP capital grants.

Finally, the suggested amendment includes a technical change to strike the citation to PHL § 2807(20) in the current bill, in relation to the CRFP Although PHL § 2807(20) may play a role in the CRFP, the CRFP was not actually "established by" PHL § 2807(20), and the amendment makes the technical change to reflect that fact.

Budget Implications:

None

Local Impact:

None.

Effective Date:

The bill would take effect immediately