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.