S T A T E O F N E W Y O R K ________________________________________________________________________ 5906 2013-2014 Regular Sessions I N S E N A T E June 21, 2013 ___________ Introduced by Sens. MONTGOMERY, PARKER -- read twice and ordered print- ed, and when printed to be committed to the Committee on Rules AN ACT to amend part Q of chapter 56 of the laws of 2013 amending the education law and other laws relating to funding to SUNY Downstate Medical Center, in relation to a sustainability plan for a hospital THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Legislative intent. The legislature hereby finds and 2 declares that a strong academic medical center which controls its own 3 and its affiliated clinical facilities is the central organizing princi- 4 ple of urban health care in America in 2013. SUNY Downstate Medical 5 Center must fully maintain its public status and be the lead institution 6 in meeting the significant unmet health care needs in Brooklyn including 7 providing expanded primary and ambulatory care in the neighborhoods that 8 need it the most. All other states' experience, as well as the last 9 seven years of experience in Brooklyn, indicates that if SUNY Downstate 10 does not take leadership of this mission it will not get done. 11 Over the next three years, SUNY Downstate Hospital should develop up 12 to four decentralized, freestanding primary and ambulatory care satel- 13 lites. Funding for these satellites is anticipated from monetizing the 14 net asset value of real estate acquired with the Long Island College 15 Hospital while still operating Long Island College Hospital as a health 16 care facility. Two thirds of the net asset value of the Long Island 17 College Hospital real estate will be devoted to subsidy of SUNY Down- 18 state Hospital and Long Island College Hospitals' operations during a 19 three year transition and development period. 20 The implementation of this legislation will make SUNY Downstate Hospi- 21 tal sustainable and recue the state subsidy to its historic level. Its 22 implementation is an alternative to closing LICH and laying off a mini- 23 mum of 600 health care workers in Brooklyn which has one of the highest 24 unemployment rates in New York. It makes no sense to lay off health care EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11556-01-3 S. 5906 2 1 workers if they can be retrained to provide the primary care that 2 central and western Brooklyn desperately needs. 3 S 2. Part Q of chapter 56 of the laws of 2013 amending the education 4 law and other laws relating to funding to SUNY Downstate Medical Center, 5 is amended by adding a new section 5-a to read as follows: 6 S 5-A. THE SUSTAINABILITY PLAN ADOPTED PURSUANT TO SECTION FIVE OF 7 THIS ACT SHALL NOT BE IMPLEMENTED UNTIL IT CONTAINS THE FOLLOWING 8 PROVISIONS. (A) SUNY DOWNSTATE HOSPITAL WILL OPERATE UP TO FOUR DECEN- 9 TRALIZED, FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES IN COMMU- 10 NITY BASED SETTINGS. THESE SATELLITES WILL BE STAFFED BY EMPLOYEES OF 11 SUNY DOWNSTATE HOSPITAL WHO SHALL MAINTAIN THEIR CURRENT COLLECTIVE 12 BARGAINING REPRESENTATION, OR, FOR SATELLITES LOCATED IN THE COMMUNITY 13 SERVED BY LONG ISLAND COLLEGE HOSPITAL BY EMPLOYEES OF LONG ISLAND 14 COLLEGE HOSPITAL WHO SHALL MAINTAIN THEIR CURRENT COLLECTIVE BARGAINING 15 REPRESENTATION. THE FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES 16 SHALL OPERATE AT LEAST SIXTEEN HOURS A DAY, PROVIDE A FULL RANGE OF 17 OUT-PATIENT AND AMBULATORY SERVICES AS DETERMINED BY COMMUNITY NEED, AND 18 COLLECTIVELY EMPLOY AT LEAST SIX HUNDRED HEALTH CARE PROFESSIONALS AND 19 SUPPORT STAFF. THESE FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES 20 MUST BE ESTABLISHED NO LATER THAN THREE YEARS AFTER THE ENACTMENT OF 21 THIS SECTION. 22 (B) THE STATE SHALL MONETIZE THE NET ASSET VALUE OF REAL ESTATE 23 ACQUIRED WITH THE LONG ISLAND COLLEGE HOSPITAL WHILE STILL OPERATING 24 LONG ISLAND COLLEGE HOSPITAL AS A HEALTH CARE FACILITY. THE STATE DIVI- 25 SION OF BUDGET SHALL DEVELOP A PROCESS THAT MAXIMIZES THE VALUE OF THE 26 ASSETS OF LONG ISLAND COLLEGE HOSPITAL AND SHALL CONSIDER THE FOLLOWING: 27 (I) LEASING ALL OR SOME OF THE PROPERTY; (II) A SALE-LEASEBACK OF ALL OR 28 SOME OF THE PROPERTY; AND (III) ESTABLISHING A REAL ESTATE INVESTMENT 29 TRUST, WITH THE PROVISO THAT THE REAL ASSETS CONTINUE TO BE USED, IN ANY 30 OF THESE ARRANGEMENTS, FOR THE PROVISION OF INPATIENT AND OUTPATIENT 31 HEALTH SERVICES. THE ASSETS OF THIS PROCESS SHALL BE USED TO RETIRE THE 32 LIABILITIES OF LONG ISLAND COLLEGE HOSPITAL AND TO PROVIDE START-UP 33 FUNDING FOR THE FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES 34 ESTABLISHED PURSUANT TO SUBDIVISION (A) OF THIS SECTION. SUNY DOWNSTATE 35 HOSPITAL IS AUTHORIZED TO APPLY FOR AND RECEIVE FUNDING FROM ANY AVAIL- 36 ABLE STATE, LOCAL, AND/OR FEDERAL SOURCES TO ASSIST IN ESTABLISHING 37 FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES INCLUDING, BUT NOT 38 LIMITED TO, STATE GRANTS AVAILABLE PURSUANT TO SECTION TWENTY-EIGHT 39 HUNDRED EIGHTEEN OF THE PUBLIC HEALTH LAW AND ACCELERATION OF PAYMENTS 40 PURSUANT TO SECTION TWENTY-EIGHT HUNDRED SEVEN-K OF THE PUBLIC HEALTH 41 LAW. 42 (C) SUNY DOWNSTATE COLLEGE OF MEDICINE SHALL DEVELOP A CURRICULUM FOR 43 THE EDUCATION OF RESIDENT PHYSICIANS IN OUT-PATIENT AND AMBULATORY 44 SERVICES THAT SHALL BE IMPLEMENTED IN THE FOUR FREESTANDING PRIMARY AND 45 AMBULATORY CARE SATELLITES ESTABLISHED PURSUANT TO SUBDIVISION (A) OF 46 THIS SECTION. 47 S 3. This act shall take effect immediately.