Bill Text: NY S02946 | 2013-2014 | General Assembly | Amended

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Bill Title: Directs the commissioner of health to establish a demonstration program authorizing private capital investments and private equity interests in hospitals.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-01-30 - PRINT NUMBER 2946A [S02946 Detail]

Download: New_York-2013-S02946-Amended.html

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                           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:
    1    Section  1.  Section  2801-a  of  the  public health law is amended by
    2  adding a new subdivision 17 to read as follows:
    3    17. (A) THE COMMISSIONER SHALL ESTABLISH, NO LATER THAN  MARCH  FIRST,
    4  TWO THOUSAND FIFTEEN, A PROGRAM WHEREBY THE DEPARTMENT MAY ACCEPT APPLI-
    5  CATIONS FOR DEMONSTRATION PROJECTS AROUND THE STATE TO DEVELOP, EVALUATE
    6  AND  IMPLEMENT  A  FLEXIBLE APPROACH TO ALLOWING PRIVATE CAPITAL INVEST-
    7  MENTS AND PRIVATE EQUITY INTERESTS IN HOSPITALS.  IN LIGHT OF THE SEVERE
    8  CONSTRAINTS ON THE AVAILABILITY OF INVESTMENT  CAPITAL  FOR  THE  HEALTH
    9  CARE  SYSTEM  IN  NEW  YORK, DEMONSTRATION PROJECTS SHALL BE DESIGNED TO
   10  PROMOTE THE DEVELOPMENT OF NEW SOURCES OF CAPITAL FOR THE  OPERATION  OF
   11  HOSPITALS  AND  TO  EVALUATE THE IMPACT PRIVATE EQUITY INVESTMENT HAS ON
   12  THE QUALITY OF CARE, ACCESS TO CARE AND BENEFIT  TO  THE  HOSPITAL,  ITS
   13  PATIENTS AND THE SURROUNDING COMMUNITY. THE COMMISSIONER MAY, IN APPROV-
   14  ING  A DEMONSTRATION PROJECT, WAIVE THE PROVISIONS OF THIS SECTION WHICH
   15  RELATE TO THE OWNERSHIP STRUCTURE, PROVIDED THE PUBLIC HEALTH AND HEALTH
   16  PLANNING COUNCIL SHALL APPROVE SUCH PROJECT.
   17    (B) APPLICANTS SHALL AT A MINIMUM DEMONSTRATE THAT:
   18    (I) THE FACILITY OR FACILITIES HAVE HISTORIES OF PROVIDING HIGH QUALI-
   19  TY CARE;
   20    (II) THE PROJECT IS COMMITTED TO PRESERVING QUALITY,  ACCESS  TO  CARE
   21  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
    1    (III) THE PROJECT WILL PROVIDE A POSITIVE BENEFIT TO THE HOSPITAL, ITS
    2  PATIENTS AND THE COMMUNITY AT LARGE; AND
    3    (IV)  ALL  APPLICABLE DUTIES, PROCEDURES, OBLIGATIONS AND REQUIREMENTS
    4  APPLICABLE TO PUBLIC HOSPITALS IN NEW YORK INCLUDING, BUT NOT LIMITED TO
    5  CHARITABLE CARE AND SUPPORT, COMMUNITY PLANS AND OBLIGATIONS,  PROVISION
    6  OF  CARE  TO  THOSE IN NEED AND ALL ATTAINMENT OF QUALITY CARE STANDARDS
    7  SET FORTH IN THIS CHAPTER WILL BE ADHERED TO.
    8    (C) HOSPITALS PARTICIPATING IN THIS  DEMONSTRATION  PROGRAM  SHALL  BE
    9  SUBJECT  TO ALL OPERATING STANDARDS AS SET FORTH IN THIS CHAPTER AND THE
   10  REGULATIONS PROMULGATED PURSUANT THERETO, AND SHALL BE  SUBJECT  TO  ANY
   11  PROVISIONS OF THIS CHAPTER FOR FAILURE TO COMPLY WITH SUCH STANDARDS.
   12    (D)  DEMONSTRATION PROJECTS APPROVED BY THE COMMISSIONER SHALL PROVIDE
   13  DETAILED REPORTING NO LESS THAN ANNUALLY TO THE DEPARTMENT IN A FORM AND
   14  MANNER TO BE DETERMINED BY THE COMMISSIONER  TO  INSURE  THE  GOALS  ARE
   15  BEING  MET.  THE  COMMISSIONER SHALL PROVIDE THE GOVERNOR, THE TEMPORARY
   16  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY WITH  A  WRITTEN
   17  REPORT  ON  THE PROGRAM, INCLUDING DETAILS OF ALL APPLICATIONS RECEIVED,
   18  THE BASIS FOR APPROVAL OR DENIAL OF THE APPLICATIONS, AND A FULL  EVALU-
   19  ATION  OF  DEMONSTRATION PROJECTS WHICH WERE APPROVED BASED ON THE GOALS
   20  OF THE PROGRAM NO LATER THAN TWO YEARS AFTER THE  FIRST  HOSPITAL  MAKES
   21  APPLICATION UNDER THE DEMONSTRATION PROGRAM.
   22    S 2. This act shall take effect immediately.