S T A T E   O F   N E W   Y O R K
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                                  9421

                          I N  A S S E M B L Y

                             April 29, 2014
                               ___________

Introduced by M. of A. MORELLE, BRONSON -- read once and referred to the
  Committee on Health

AN  ACT  to  amend  the  public health law, in relation to covered lives
  assessments in the Rochester region

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 6 of section 2807-s of the public health law is
amended by adding a new paragraph (g) to read as follows:
  (G)  A  FURTHER  GROSS ANNUAL AMOUNT ALLOCATED TO THE ROCHESTER REGION
BEGINNING JANUARY FIRST, TWO THOUSAND FIFTEEN SHALL BE ONE  HUNDRED  TEN
MILLION DOLLARS. FOR CALENDAR YEARS TWO THOUSAND SIXTEEN AND THEREAFTER,
THAT  AMOUNT  SHALL BE INDEXED FOR STATEWIDE HEALTH CARE INFLATION IN AN
AMOUNT DETERMINED BY THE COMMISSIONER. SUCH  AMOUNT  SHALL  BE  EXCLUDED
FROM  ALL COMPUTATIONS AND ADJUSTMENTS MADE PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION SIX OF SECTION TWO THOUSAND EIGHT HUNDRED  SEVEN-T  OF  THIS
ARTICLE.
  S  2.  Subdivision  7  of  section  2807-s of the public health law is
amended by adding a new paragraph (d) to read as follows:
  (D)(I) FIVE MILLION DOLLARS OF THE FUNDS ALLOCATED  TO  THE  ROCHESTER
REGION  PURSUANT  TO  PARAGRAPH  (G)  OF SUBDIVISION SIX OF THIS SECTION
SHALL BE DISTRIBUTED TO A ROCHESTER REGIONAL HEALTH  PLANNING  ORGANIZA-
TION  FOR  USE IN FUNDING REGIONAL HEALTH CARE IMPROVEMENT PROJECTS. THE
REGIONAL HEALTH PLANNING ORGANIZATION  SHALL  DISBURSE  THOSE  FUNDS  IN
ACCORDANCE WITH THIS PARAGRAPH, OR PURSUANT TO GRANTS MADE BY THE ORGAN-
IZATION  IN  ACCORDANCE  WITH  THIS PARAGRAPH. DISTRIBUTION OF ANY GRANT
FUNDS ADMINISTERED BY THE REGIONAL HEALTH PLANNING ORGANIZATION SHALL BE
PURSUANT TO  A  MULTI-STAKEHOLDER  PROCESS.  THE  REGIONAL  HEALTH  CARE
IMPROVEMENT  GRANT FUND PROJECTS SHALL INCLUDE THREE MILLION DOLLARS PER
YEAR FOR A SHARED COMMUNITY HEALTH INFRASTRUCTURE DESIGNED ON THE  BASIS
OF  COLLABORATIVE  COMMUNITY  EFFORTS,  INCLUDING COMMUNITY-WIDE PATIENT
SAFETY AND QUALITY IMPROVEMENT PROGRAMS, ELIMINATION OF HEALTH  DISPARI-
TIES, HEALTH INFORMATION TECHNOLOGY, AND TWO MILLION DOLLARS TO FUND THE
REGIONAL HEALTH PLANNING ORGANIZATION.  THE HEALTH PLANNING ORGANIZATION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14795-01-4
              

A. 9421                             2

SHALL  USE REASONABLE EFFORTS TO GENERATE MATCHING FUND CONTRIBUTIONS IN
THE FORM OF GRANTS, DONATIONS AND OTHER CONTRIBUTIONS.
  (II)  ONE  HUNDRED  FIVE MILLION DOLLARS OF THE FUNDS ALLOCATED TO THE
ROCHESTER REGION PURSUANT TO PARAGRAPH (G) OF SUBDIVISION  SIX  OF  THIS
SECTION  SHALL  BE ALLOCATED TO A NOT-FOR-PROFIT ORGANIZATION OR ASSOCI-
ATION THAT HAS BEEN  DESIGNATED  THROUGH  A  MULTI-STAKEHOLDER  PROCESS,
WHICH SHALL DISTRIBUTE THOSE FUNDS TO ALL OF THE HOSPITALS IN THE REGION
ENGAGED  IN GRADUATE MEDICAL EDUCATION IN ORDER TO FUND GRADUATE MEDICAL
EDUCATION. ONE HUNDRED MILLION DOLLARS OF SUCH FUNDING SHALL BE DISTRIB-
UTED PROPORTIONALLY TO EACH OF THE HOSPITALS IN  AMOUNTS  WHICH  REFLECT
EACH  HOSPITAL'S  CURRENT COSTS FOR GRADUATE MEDICAL EDUCATION, AND FIVE
MILLION  DOLLARS  OF  UNREIMBURSED  ADMINISTRATIVE  AND  OTHER  GRADUATE
MEDICAL   EDUCATION  RELATED  COSTS  SHALL  BE  ALLOCATED  IN  THE  SAME
PROPORTIONS. ONE HUNDRED MILLION DOLLARS OF THE DISTRIBUTED FUNDS  SHALL
BE  IN  LIEU  OF  CURRENT FUNDING OF SUCH COSTS AS CURRENTLY INCLUDED IN
CLAIMS PAYMENTS BY THE TWO LARGEST NON-GOVERNMENTAL THIRD  PARTY  PAYORS
RESULTING  IN  A REDUCTION IN THE AMOUNT PAID BY SUCH THIRD PARTY PAYORS
IN AN AMOUNT EQUAL TO THE ONE HUNDRED  MILLION  DOLLARS.  PRIOR  TO  THE
ALLOCATION  OF  FUNDS  PURSUANT  TO  THIS SUBDIVISION, THE PARTICIPATING
HOSPITALS AND SUCH THIRD PARTY PAYORS SHALL DEVELOP A  PROCESS  FOR  THE
DISTRIBUTION  OF  SUCH FUNDS AND A MECHANISM TO ENSURE THAT THE REQUIRED
REDUCTION OF PAYMENTS BY  SUCH  THIRD  PARTY  PAYORS  TO  THE  HOSPITALS
OCCURS.  THE  AFFECTED  HOSPITALS  AND  THE TWO LARGEST NON-GOVERNMENTAL
THIRD PARTY PAYORS IN THE ROCHESTER REGION SHALL JOINTLY SELECT AN INDE-
PENDENT THIRD PARTY TO DETERMINE THE REDUCTIONS WHICH SHALL  OCCUR  FROM
PREVIOUSLY  NEGOTIATED  RATES  FOR  CLAIMS PAYMENTS TO SUCH HOSPITALS BY
SPECIFIED THIRD PARTY PAYORS IN ORDER TO AVOID DUPLICATE FUNDING  PURSU-
ANT TO THIS PARAGRAPH.
  S  3.  This  act  shall take effect January 1, 2015, provided however,
that the amendments made to section 2807-s of the public health law made
by sections one and two of this act shall not affect the  expiration  of
such section and shall be deemed to expire therewith.