Senate Bill S7354

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7354

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation  to  authorizing  the
  establishment of private equity hospitals

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2801-a of the  public  health  law  is  amended  by
adding a new subdivision 17 to read as follows:
  17.  (A)  THE COMMISSIONER SHALL ESTABLISH, NO LATER THAN MARCH FIRST,
TWO THOUSAND THIRTEEN, A  PROGRAM  WHEREBY  THE  DEPARTMENT  MAY  ACCEPT
APPLICATIONS  FOR  DEMONSTRATION  PROJECTS  AROUND THE STATE TO DEVELOP,
EVALUATE AND IMPLEMENT A FLEXIBLE APPROACH TO ALLOWING  PRIVATE  CAPITAL
INVESTMENTS  AND PRIVATE EQUITY INTERESTS IN HOSPITALS.  IN LIGHT OF THE
SEVERE CONSTRAINTS ON THE AVAILABILITY OF  INVESTMENT  CAPITAL  FOR  THE
HEALTH CARE SYSTEM IN NEW YORK, DEMONSTRATION PROJECTS SHALL BE DESIGNED
TO  PROMOTE  THE DEVELOPMENT OF NEW SOURCES OF CAPITAL FOR THE OPERATION
OF HOSPITALS AND TO EVALUATE THE IMPACT PRIVATE EQUITY INVESTMENT HAS ON
THE QUALITY OF CARE, ACCESS TO CARE AND BENEFIT  TO  THE  HOSPITAL,  ITS
PATIENTS AND THE SURROUNDING COMMUNITY. THE COMMISSIONER MAY, IN APPROV-
ING  A DEMONSTRATION PROJECT, WAIVE THE PROVISIONS OF THIS SECTION WHICH
RELATE TO THE OWNERSHIP STRUCTURE, PROVIDED THE PUBLIC HEALTH AND HEALTH
PLANNING COUNCIL SHALL APPROVE SUCH PROJECT.
  (B) APPLICANTS SHALL AT A MINIMUM DEMONSTRATE THAT:
  (I) THE FACILITY OR FACILITIES HAVE HISTORIES OF PROVIDING HIGH QUALI-
TY CARE;
  (II) THE PROJECT IS COMMITTED TO PRESERVING QUALITY,  ACCESS  TO  CARE
AND ACCEPTANCE OF A BROAD MIX OF PAYOR TYPES;
  (III) THE PROJECT WILL PROVIDE A POSITIVE BENEFIT TO THE HOSPITAL, ITS
PATIENTS AND THE COMMUNITY AT LARGE; AND
  (IV)  ALL  APPLICABLE DUTIES, PROCEDURES, OBLIGATIONS AND REQUIREMENTS
APPLICABLE TO PUBLIC HOSPITALS IN NEW YORK INCLUDING, BUT NOT LIMITED TO
CHARITABLE CARE AND SUPPORT, COMMUNITY PLANS AND OBLIGATIONS,  PROVISION
OF  CARE  TO  THOSE IN NEED AND ALL ATTAINMENT OF QUALITY CARE STANDARDS
SET FORTH IN THIS CHAPTER WILL BE ADHERED TO.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15631-02-2

S. 7354                             2

  (C) HOSPITALS PARTICIPATING IN THIS  DEMONSTRATION  PROGRAM  SHALL  BE
SUBJECT  TO ALL OPERATING STANDARDS AS SET FORTH IN THIS CHAPTER AND THE
REGULATIONS PROMULGATED PURSUANT THERETO, AND SHALL BE  SUBJECT  TO  ANY
PROVISIONS OF THIS CHAPTER FOR FAILURE TO COMPLY WITH SUCH STANDARDS.
  (D)  DEMONSTRATION PROJECTS APPROVED BY THE COMMISSIONER SHALL PROVIDE
DETAILED REPORTING NO LESS THAN ANNUALLY TO THE DEPARTMENT IN A FORM AND
MANNER TO BE DETERMINED BY THE COMMISSIONER  TO  INSURE  THE  GOALS  ARE
BEING  MET.  THE  COMMISSIONER SHALL PROVIDE THE GOVERNOR, THE TEMPORARY
PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY WITH  A  WRITTEN
REPORT  ON  THE PROGRAM, INCLUDING DETAILS OF ALL APPLICATIONS RECEIVED,
THE BASIS FOR APPROVAL OR DENIAL OF THE APPLICATIONS, AND A FULL  EVALU-
ATION  OF  DEMONSTRATION PROJECTS WHICH WERE APPROVED BASED ON THE GOALS
OF THE PROGRAM NO LATER THAN TWO YEARS AFTER THE  FIRST  HOSPITAL  MAKES
APPLICATION UNDER THE DEMONSTRATION PROGRAM.
  S 2. This act shall take effect immediately.