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

                                 2946--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 25, 2013
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health --  recommitted  to
  the  Committee  on  Health in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 FIFTEEN, A PROGRAM WHEREBY THE DEPARTMENT MAY ACCEPT APPLI-
CATIONS FOR DEMONSTRATION PROJECTS AROUND THE STATE TO DEVELOP, EVALUATE
AND  IMPLEMENT  A  FLEXIBLE APPROACH TO ALLOWING PRIVATE CAPITAL INVEST-
MENTS 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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05352-02-4

              

S. 2946--A                          2

  (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.
  (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.