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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2946
                              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
       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 FOURTEEN, A  PROGRAM  WHEREBY  THE  DEPARTMENT  MAY  ACCEPT
    5  APPLICATIONS  FOR  DEMONSTRATION  PROJECTS  AROUND THE STATE TO DEVELOP,
    6  EVALUATE AND IMPLEMENT A FLEXIBLE APPROACH TO ALLOWING  PRIVATE  CAPITAL
    7  INVESTMENTS  AND PRIVATE EQUITY INTERESTS IN HOSPITALS.  IN LIGHT OF THE
    8  SEVERE CONSTRAINTS ON THE AVAILABILITY OF  INVESTMENT  CAPITAL  FOR  THE
    9  HEALTH CARE SYSTEM IN NEW YORK, DEMONSTRATION PROJECTS SHALL BE DESIGNED
   10  TO  PROMOTE  THE DEVELOPMENT OF NEW SOURCES OF CAPITAL FOR THE OPERATION
   11  OF 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;
   22    (III) THE PROJECT WILL PROVIDE A POSITIVE BENEFIT TO THE HOSPITAL, ITS
   23  PATIENTS AND THE COMMUNITY AT LARGE; AND
   24    (IV)  ALL  APPLICABLE DUTIES, PROCEDURES, OBLIGATIONS AND REQUIREMENTS
   25  APPLICABLE TO PUBLIC HOSPITALS IN NEW YORK INCLUDING, BUT NOT LIMITED TO
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05352-01-3
       S. 2946                             2
    1  CHARITABLE CARE AND SUPPORT, COMMUNITY PLANS AND OBLIGATIONS,  PROVISION
    2  OF  CARE  TO  THOSE IN NEED AND ALL ATTAINMENT OF QUALITY CARE STANDARDS
    3  SET FORTH IN THIS CHAPTER WILL BE ADHERED TO.
    4    (C)  HOSPITALS  PARTICIPATING  IN  THIS DEMONSTRATION PROGRAM SHALL BE
    5  SUBJECT TO ALL OPERATING STANDARDS AS SET FORTH IN THIS CHAPTER AND  THE
    6  REGULATIONS  PROMULGATED  PURSUANT  THERETO, AND SHALL BE SUBJECT TO ANY
    7  PROVISIONS OF THIS CHAPTER FOR FAILURE TO COMPLY WITH SUCH STANDARDS.
    8    (D) DEMONSTRATION PROJECTS APPROVED BY THE COMMISSIONER SHALL  PROVIDE
    9  DETAILED REPORTING NO LESS THAN ANNUALLY TO THE DEPARTMENT IN A FORM AND
   10  MANNER  TO  BE  DETERMINED  BY  THE COMMISSIONER TO INSURE THE GOALS ARE
   11  BEING MET. THE COMMISSIONER SHALL PROVIDE THE  GOVERNOR,  THE  TEMPORARY
   12  PRESIDENT  OF  THE SENATE AND THE SPEAKER OF THE ASSEMBLY WITH A WRITTEN
   13  REPORT ON THE PROGRAM, INCLUDING DETAILS OF ALL  APPLICATIONS  RECEIVED,
   14  THE  BASIS FOR APPROVAL OR DENIAL OF THE APPLICATIONS, AND A FULL EVALU-
   15  ATION OF DEMONSTRATION PROJECTS WHICH WERE APPROVED BASED ON  THE  GOALS
   16  OF  THE  PROGRAM  NO LATER THAN TWO YEARS AFTER THE FIRST HOSPITAL MAKES
   17  APPLICATION UNDER THE DEMONSTRATION PROGRAM.
   18    S 2. This act shall take effect immediately.