BILL NUMBER:S5645

TITLE OF BILL:
An act
to amend the public authorities law, in relation to providing for
financing by the dormitory authority of construction and equipping of
primary care health facilities by the Primary Care Development
Corporation

PURPOSE:
To enable the Primary Care Development Corporation to apply for
funding through the Dormitory Authority of the State of New York for
the financing of capital improvements for the primary healthcare
facilities of the State to meet the primary care expansion goals of
federal and State healthcare reform initiatives in underserved
communities throughout New York.

SUMMARY OF PROVISIONS:
Section 1 amends paragraph (b) of subdivision 2 of section 1676 of the
public authorities law by adding a new undesignated paragraph to
allow the Primary Care Development Corporation to finance capital
improvements for primary care health facilities through the Dormitory
Authority.

Section 2. Amends subdivision 1 of section 1680 of the public
authorities law by adding a new undesignated paragraph to allow the
              

Primary Care Development Corporation to finance capital improvements
for primary care health facilities through the Dormitory Authority.

Section 3. Provides any contracts entered into by the Dormitory
Authority of the State of New York pursuant to this act shall be
deemed to be within the meaning of such terms as set forth in article
15-a of the executive law for purposes of promoting minority and
women-owned business enterprises.

Section 4. Provides an immediate effective date

JUSTIFICATION:
Significant recent changes in the healthcare environment are expected
to generate an expansion in the demand for primary care. The federal
Affordable Care Act (ACA) calls for major expansion and
transformation of primary care over the next four years to meet the
expected demand resulting from the enrollment of 32 million
additional individuals in health plans.

The Affordable Care Act contains numerous provisions that invest in
primary care capacity, including federal funding to expand
federally-qualified health centers (FQHCs). Expanding and
transforming primary care is a priority for the Administration and
the Legislature in order to reduce health care costs and improve
health outcomes, particularly among Medicaid and public health
insurance enrollees.

Yet with limited capital funding available, New York State faces the
challenge of preserving existing primary care capacity and expanding
capacity to meet the growing demand, particularly in safety-net


communities where healthcare facilities are in danger of closure.
Medicaid Redesign Team Proposal 67 (adopted) calls for the use of
HEAL capital funds and exploration of other capital/debt assistance
to facilitate the restructuring of critical safety net hospitals,
nursing homes and diagnostic and treatment centers (D&TCs). It is in
New York's interest to preserve and expand primary care during
facility restructurings or closures.

This bill would allow the Primary Care Development Corporation to use
tax-exempt bond financing through the Dormitory Authority to
accommodate these and other urgent critical needs related to
expanding primary care capacity.

The Primary Care Development Corporation (PCDC) is a non-profit
organization whose mission is to expand and improve primary care in
underserved communities by providing capital access for acquisition,
construction, improvements and equipment for primary healthcare
providers in New York State. PCDC has facilitated the investment of
$260 million in over 91 primary care capital projects which have
added 630,000 square feet of space, created 2,300 permanent jobs and
added capacity to serve 575,000 additional primary care patients.
PCDC has never had a loan default.

PCDC is a national leader in primary care capital financing. The
capital access program has received over $8 million in Community
Development Financial Institutions (CDFI) grants and a $40 million
allocation of New Markets Tax Credit for primary care expansion by
the U.S. Department of the Treasury. PCDC has administered a $10
million statewide community health center capital grant program for
the New York State Department of Health and serves as the
administrator for underwriting and portfolio management services to
the Health Resources and Services Administration (HRSA) federal loan
guarantee program.

PCDC has provided $65 million of bond financing for New York City
primary care providers through the Dormitory Authority under the
State's Municipal Health Facility Improvement Program. This bill
would allow PCDC to provide tax-exempt financing for primary care
providers in both urban and rural underserved communities throughout
New York State.

LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediate.