S. 5902 2
FOR THE VITAL PUBLIC PURPOSES OF TRANSFORMING THE DELIVERY OF HEALTH
CARE IN BROOKLYN AND SUPPORTING THE TEACHING PROGRAMS AND CORE ACADEMIC
MISSION OF SUNY DOWNSTATE.
(D) THE CORPORATION ESTABLISHED PURSUANT TO THIS SECTION WILL CARRY
OUT THE FUNCTIONS NECESSARY TO PROMOTE AND IMPROVE THE QUALITY OF HEALTH
CARE SERVICES AND FACILITIES FOR THE BENEFIT OF THE RESIDENTS OF THE
STATE OF NEW YORK AND KINGS COUNTY, INCLUDING PERSONS IN NEED OF HEALTH
CARE SERVICES WITHOUT THE ABILITY TO PAY AS REQUIRED BY LAW, AND TO
SUPPORT THE TEACHING PROGRAMS AND CORE ACADEMIC MISSION OF SUNY DOWN-
STATE MEDICAL CENTER. THE CREATION AND OPERATION OF THE CORPORATION, AS
PROVIDED IN THIS SECTION, IS IN ALL RESPECTS FOR THE BENEFIT OF THE
PEOPLE OF THE STATE OF NEW YORK AND KINGS COUNTY AND CONSTITUTES A
STATE, COUNTY AND PUBLIC PURPOSE, AND THE EXERCISE BY SUCH CORPORATION
OF THE FUNCTIONS, POWERS AND DUTIES AS PROVIDED IN THIS SECTION CONSTI-
TUTES THE PERFORMANCE OF AN ESSENTIAL PUBLIC AND GOVERNMENTAL FUNCTION.
(E) ESTABLISHMENT OF THIS CORPORATION IS CONSISTENT WITH THE SUNY
DOWNSTATE SUSTAINABILITY PLAN DEVELOPED IN ACCORDANCE WITH PART Q OF
CHAPTER FIFTY-SIX OF THE LAWS OF TWO THOUSAND THIRTEEN, WHICH REQUIRED
SUNY TO "SET FORTH RECOMMENDATIONS FOR ACCOMPLISHING THE RESTRUCTURING
OF DOWNSTATE HOSPITAL FOR THE PURPOSE OF ACHIEVING FISCAL VIABILITY
WHILE PRESERVING ITS STATUS AS A TEACHING HOSPITAL." THE SUSTAINABILITY
PLAN IDENTIFIED A NUMBER OF CHANGES TO BRING EFFICIENCIES TO DOWNSTATE
HOSPITAL AND CALLED FOR THE CREATION OF A "BROOKLYN HEALTH-IMPROVEMENT
COLLABORATIVE" TO SUPPORT THE ACADEMIC MISSION OF SUNY DOWNSTATE MEDICAL
CENTER.
2. FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
(A) "BOARD" SHALL MEAN THE BOARD OF DIRECTORS OF THE CORPORATION AS
PROVIDED IN THIS SECTION.
(B) "CORPORATION" SHALL MEAN THE CORPORATION THAT WILL BE FORMED
PURSUANT TO THE AUTHORITY GRANTED UNDER THIS SECTION.
(C) "PARTICIPATING HOSPITAL" SHALL MEAN ANY HOSPITAL LOCATED IN THE
COUNTY OF KINGS, EXCLUDING HOSPITALS OPERATED BY THE NEW YORK CITY
HEALTH AND HOSPITALS CORPORATION, THAT ELECTS TO PARTICIPATE AND ENTERS
INTO AN AGREEMENT WITH THE CORPORATION; PROVIDED, HOWEVER, THAT DOWN-
STATE HOSPITAL SHALL CONSTITUTE A PARTICIPATING HOSPITAL UNDER THIS
SECTION ONLY WITH THE APPROVAL OF THE SUNY BOARD OF TRUSTEES, AND SUCH
APPROVAL SHALL NOT BE CONSTRUED TO INCLUDE ANY OTHER SUNY HOSPITAL, SUNY
DOWNSTATE MEDICAL SCHOOL, OR ANY OTHER SUNY ACADEMIC INSTITUTION.
(D) "SUNY DOWNSTATE MEDICAL CENTER" SHALL MEAN THE STATE UNIVERSITY OF
NEW YORK HEALTH SCIENCE CENTER AT BROOKLYN, CONSISTING OF THE SUNY DOWN-
STATE MEDICAL SCHOOLS AND DOWNSTATE HOSPITAL.
(E) "SUNY DOWNSTATE MEDICAL SCHOOLS" SHALL MEAN THE ACADEMIC INSTI-
TUTIONS OF SUNY DOWNSTATE MEDICAL CENTER.
(F) "DOWNSTATE HOSPITAL" SHALL MEAN THE UNIVERSITY HOSPITAL OF BROOK-
LYN.
(G) "STUDENTS" OR "SUNY DOWNSTATE STUDENTS" SHALL MEAN STUDENTS,
INTERNS, FELLOWS AND RESIDENTS OF THE SUNY DOWNSTATE MEDICAL SCHOOLS.
3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMIS-
SIONER IS HEREBY AUTHORIZED TO ESTABLISH A CORPORATION, WHICH SHALL HAVE
THE AUTHORITY NECESSARY TO ORGANIZE A NETWORK OF HOSPITALS LOCATED IN
BROOKLYN, INCLUDING THE UNIVERSITY HOSPITAL OF BROOKLYN ("DOWNSTATE
HOSPITAL") AND ALL PRIVATE HOSPITALS THAT ELECT TO PARTICIPATE, FOR THE
FOLLOWING PURPOSES:
(A) IMPROVING THE OVERALL HEALTH OF THE COVERED POPULATION SERVED;
(B) PROMOTING THE EFFICIENT DELIVERY OF HEALTH CARE SERVICES;
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(C) NEGOTIATING CONTRACTS WITH THIRD PARTY PAYERS;
(D) ASSURING OPPORTUNITIES FOR TRAINING MEDICAL PROFESSIONALS;
(E) RECEIVING FUNDS FROM ANY SOURCE AND DISBURSING FUNDS AS APPROPRI-
ATE AND AS PERMISSIBLE UNDER FEDERAL LAW FOLLOWING APPROPRIATION BY THE
LEGISLATURE;
(F) ESTABLISHING A PROCESS TO SOLICIT PUBLIC INPUT TO HELP INFORM THE
ACTIVITIES UNDER THIS SECTION; AND
(G) CONDUCTING SUCH OTHER ACTIVITIES THAT MAY BE NECESSARY AND APPRO-
PRIATE TO SERVE THE OBJECTIVES OF THIS SECTION.
SUCH CORPORATION SHALL NOT BE AUTHORIZED TO ENGAGE IN THE DIRECT
PROVISION OF SERVICES.
4. (A) SUCH CORPORATION SHALL BE ESTABLISHED PURSUANT TO THE NOT-FOR-
PROFIT CORPORATION LAW AND SHALL BE ORGANIZED AND OPERATED EXCLUSIVELY
FOR THE PURPOSES SET FORTH IN THIS SECTION. IT IS HEREBY DECLARED THAT
IN CARRYING OUT SUCH PURPOSES AND POWERS SUCH CORPORATION WILL BE
PERFORMING AN ESSENTIAL GOVERNMENTAL FUNCTION.
(B) (I) THE CORPORATION SHALL BE GOVERNED BY A BOARD OF THIRTEEN
DIRECTORS APPOINTED BY AND WITH THE CONSENT OF THE SENATE. SUCH BOARD
SHALL CONSIST OF SEVEN DIRECTORS APPOINTED BY THE GOVERNOR, TWO DIREC-
TORS RECOMMENDED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO RECOM-
MENDED BY THE SPEAKER OF THE ASSEMBLY, ONE RECOMMENDED BY THE MINORITY
LEADER OF THE SENATE AND ONE RECOMMENDED BY THE MINORITY LEADER OF THE
ASSEMBLY. ALL DIRECTORS SHALL HAVE EXPERTISE IN RELEVANT AREAS INCLUDING
HEALTH CARE FINANCE, BANKRUPTCY, CORPORATE RESTRUCTURING, COMMUNITY AND
ECONOMIC DEVELOPMENT, HEALTH CARE DELIVERY AND HEALTH CARE INSURANCE, OR
ARE MEMBERS OF THE PUBLIC WHO RESIDE IN BROOKLYN, PROVIDED THAT NONE OF
THE INDIVIDUAL MEMBERS ARE DIRECTORS, OFFICERS OR EMPLOYEES OF HOSPITALS
OR IMMEDIATE FAMILY MEMBERS OF DIRECTORS, OFFICERS OR EMPLOYEES OF
HOSPITALS. DIRECTORS SHALL BE APPOINTED FOR TERMS OF THREE YEARS. IN
THE EVENT OF A VACANCY CAUSED BY DEATH, RESIGNATION, REMOVAL OR DISABIL-
ITY OF ANY MEMBER, THE VACANCY SHALL BE FILLED BY THE GOVERNOR BY AND
WITH THE ADVICE AND CONSENT OF THE SENATE FOR THE UNEXPIRED TERM. THE
GOVERNOR SHALL SELECT THE CHAIR OF THE BOARD FROM AMONG THE DIRECTORS.
(II) THE DIRECTORS SHALL NOT RECEIVE ANY COMPENSATION FOR THEIR
SERVICES BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECESSARY
EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES. SUCH
DIRECTORS, EXCEPT AS OTHERWISE PROVIDED BY LAW, MAY ENGAGE IN PRIVATE
EMPLOYMENT, OR IN A PROFESSION OR BUSINESS. NO DIRECTOR SHALL FORFEIT
HIS OR HER OFFICE OR EMPLOYMENT BY REASON OF HIS OR HER ACCEPTANCE OF
APPOINTMENT AS AN OFFICER, DIRECTOR OR EMPLOYEE OF THE CORPORATION, NOR
SHALL SERVICE AS AN OFFICER, DIRECTOR OR EMPLOYEE BE DEEMED INCOMPATIBLE
OR IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT.
(III) THE AFFIRMATIVE VOTE OF SEVEN DIRECTORS SHALL BE NECESSARY FOR
THE TRANSACTION OF ANY BUSINESS OR THE EXERCISE OF ANY POWER OR FUNCTION
OF SUCH BOARD. SUCH BOARD MAY DELEGATE TO ONE OR MORE OF ITS MEMBERS OR
AGENTS SUCH POWERS AND DUTIES AS IT MAY DEEM PROPER.
(IV) THE DIRECTORS SHALL SELECT AND SHALL DETERMINE THE SALARY AND
BENEFITS OF AN EXECUTIVE DIRECTOR OF THE CORPORATION.
5. (A) TO CARRY OUT THE PURPOSES SET FORTH IN SUBDIVISION THREE OF
THIS SECTION THE CORPORATION SHALL HAVE THE FOLLOWING POWERS AND DUTIES,
IN ADDITION TO OTHER POWERS AND DUTIES AFFORDED TO A CORPORATION BY LAW:
(I) TO DIRECT THE PLACEMENT OF SUNY DOWNSTATE STUDENTS AMONG PARTIC-
IPATING HOSPITALS, WITH THE APPROVAL OF THE SUNY DOWNSTATE MEDICAL
SCHOOLS AND IN ACCORDANCE WITH THE REQUISITE ACCREDITATION ORGANIZA-
TIONS;
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(II) TO ASSIST THE DEPARTMENT OF HEALTH IN THE DEVELOPMENT AND IMPLE-
MENTATION OF A BROOKLYN PLAN FOR FEDERAL DELIVERY SYSTEM REFORM INCEN-
TIVE PROGRAM ("DSRIP") FUNDS, INCLUDING THE DEVELOPMENT OF BENCHMARKS
FOR EACH PARTICIPATING HOSPITAL AND WORKFORCE RETRAINING INITIATIVES;
(III) TO SEEK THE INPUT OF THE LEGISLATURE IN DEVELOPING THE BROOKLYN
DSRIP PLAN;
(IV) TO POST THE BROOKLYN DSRIP PLAN ON A PUBLICLY ACCESSIBLE WEBSITE
AND PROVIDE WRITTEN COPIES OF SUCH PLAN TO THE CHAIRS OF THE SENATE
FINANCE, ASSEMBLY WAYS AND MEANS, AND SENATE AND ASSEMBLY HEALTH COMMIT-
TEES AT LEAST THIRTY DAYS BEFORE THE DATE ON WHICH IMPLEMENTATION IS
EXPECTED TO BEGIN;
(V) TO MONITOR EACH PARTICIPATING HOSPITAL'S PERFORMANCE AGAINST SUCH
PERFORMANCE BENCHMARKS AND ENSURE THE IMPLEMENTATION OF THE PLAN AS
NECESSARY BY REQUIRING PARTICIPATING HOSPITALS TO TAKE APPROPRIATE
ACTION;
(VI) TO DISBURSE BROOKLYN DSRIP FUNDS PURSUANT TO SUCH DSRIP PLAN AND
IN ACCORDANCE WITH FEDERAL LAW BUT ONLY AFTER APPROPRIATION BY THE
LEGISLATURE;
(VII) TO PREPARE QUARTERLY REPORTS ON THE ACTIVITIES OF THE CORPO-
RATION, INCLUDING THE RECEIPT AND DISBURSEMENT OF FUNDS, WHICH SHALL BE
MADE AVAILABLE ON A PUBLICLY ACCESSIBLE WEBSITE;
(VIII) TO ESTABLISH A PROCESS TO SOLICIT PUBLIC INPUT TO HELP INFORM
THE ACTIVITIES OF THE CORPORATION, INCLUDING THE DEVELOPMENT AND IMPLE-
MENTATION OF THE BROOKLYN DSRIP PLAN. SUCH PROCESS FOR THE SOLICITATION
OF PUBLIC INPUT SHALL CONSIST OF AT LEAST THREE PUBLIC MEETINGS, AND
PUBLIC AND PRIVATE CONSULTATIONS WITH HEALTH AND HOSPITAL STAKEHOLDERS
IN BROOKLYN;
(IX) TO DEVELOP A TRANSITION STRATEGY DESIGNED TO SUPPORT THE LONG
TERM SUSTAINABILITY OF THE HEALTH CARE SYSTEM IN BROOKLYN IN ANTIC-
IPATION OF THE EXPIRATION OF THIS SECTION; AND
(X) TO CONDUCT SUCH OTHER ACTIVITIES AS NECESSARY AND APPROPRIATE TO
SERVE THE OBJECTIVES OF THIS SECTION, PROVIDED THAT NO DSRIP PLAN OR
TRANSITIONAL PLAN SHALL REQUIRE, DIRECTLY OR INDIRECTLY, THE REDUCTION
OF BEDS AT DOWNSTATE HOSPITAL TO AN AMOUNT THAT IS FEWER THAN TWO
HUNDRED FIFTY BEDS, OR THE CLOSURE OF THE SUNY DOWNSTATE MEDICAL
SCHOOLS.
(B) SUCH CORPORATION WILL CONVENE AN ADVISORY COMMITTEE FOR THE
PURPOSE OF PROVIDING ADVICE AND GUIDANCE TO THE CORPORATION IN THE
ACHIEVEMENT OF THE OBJECTIVES SET FORTH IN THIS SECTION. THE ADVISORY
COMMITTEE SHALL CONSIST OF ONE REPRESENTATIVE FROM EACH PARTICIPATING
HOSPITAL, AS WELL AS THIRTEEN INDIVIDUALS WHO HAVE EXPERTISE IN RELEVANT
AREAS INCLUDING HEALTH CARE FINANCE, BANKRUPTCY, CORPORATE RESTRUCTUR-
ING, COMMUNITY AND ECONOMIC DEVELOPMENT, HEALTH CARE DELIVERY AND HEALTH
CARE INSURANCE, OR ARE MEMBERS OF THE PUBLIC WHO RESIDE IN BROOKLYN,
PROVIDED THAT NONE OF THE INDIVIDUAL MEMBERS ARE DIRECTORS, OFFICERS OR
EMPLOYEES OF HOSPITALS OR IMMEDIATE FAMILY MEMBERS OF DIRECTORS, OFFI-
CERS OR EMPLOYEES OF HOSPITALS. SUCH INDIVIDUAL MEMBERS SHALL INCLUDE
TWO MEMBERS RECOMMENDED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO
RECOMMENDED BY THE SPEAKER OF THE ASSEMBLY, ONE RECOMMENDED BY THE
MINORITY LEADER OF THE SENATE AND ONE RECOMMENDED BY THE MINORITY LEADER
OF THE ASSEMBLY.
6. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
COMMISSIONER SHALL ISSUE TO PARTICIPATING HOSPITALS OPERATING CERTIF-
ICATES THAT SHALL LIST THE CORPORATION AS A CO-OPERATOR OF EACH OF THE
HEALTH FACILITIES OF SUCH HOSPITALS. SUCH CORPORATION SHALL BE AUTHOR-
IZED TO ENTER INTO AGREEMENTS WITH PARTICIPATING HOSPITALS UNDER WHICH
S. 5902 5
THE CORPORATION, ACTING AS A CO-OPERATOR OF EACH SUCH PARTICIPATING
HOSPITAL, SHALL HAVE SUCH POWERS AS ARE CONSISTENT WITH THE PUBLIC
PURPOSE AS SET FORTH IN THIS SECTION, AND SHALL BE DEEMED TO BE ACTING
AS A PUBLIC HOSPITAL.
(B) WHENEVER THE CORPORATION OR A PARTICIPATING HOSPITAL DETERMINES
THAT INCLUSION OF A HOSPITAL AS A PARTICIPANT IN THE CORPORATION'S
NETWORK DOES NOT SERVE, OR IS NO LONGER NECESSARY TO SERVE, THE PURPOSES
OF THIS SECTION, AS SET FORTH IN THE AGREEMENT BETWEEN THE CORPORATION
AND SUCH HOSPITAL, THE CORPORATION, ON ONE HUNDRED EIGHTY DAYS WRITTEN
NOTICE, SHALL ISSUE TO THAT HOSPITAL AN OPERATING CERTIFICATE THAT NO
LONGER LISTS THE CORPORATION AS A CO-OPERATOR OF THE HOSPITAL.
7. (A) NOTHING IN THIS SECTION SHALL BE DEEMED TO SUBJECT THE STATE OR
ANY OF ITS AGENCIES, THE CORPORATION, OR ANY OFFICER, MEMBER OR EMPLOYEE
THEREOF TO LIABILITY FOR ANY ACT OR OMISSION BY ANY PARTICIPATING HOSPI-
TAL. HOWEVER, THIS PARAGRAPH SHALL NOT ABSOLVE ANY PERSON OR ENTITY FOR
LIABILITY FOR ITS OWN ACT OR OMISSION.
(B) NOTHING IN THIS SECTION SHALL BE DEEMED TO IMPOSE ANY LIABILITIES,
OBLIGATIONS, OR RESPONSIBILITIES OF ANY PARTICIPATING HOSPITAL UPON THE
STATE OR ANY OF ITS AGENCIES, THE CORPORATION, OR ANY OFFICER, MEMBER OR
EMPLOYEE THEREOF EXCEPT AS PROVIDED IN THIS SECTION.
8. IN ORDER TO PROMOTE IMPROVED QUALITY OF, AND ACCESS TO, HEALTH CARE
SERVICES AND PROMOTE IMPROVED CLINICAL OUTCOMES IN BROOKLYN, IT IS THE
POLICY OF THE STATE TO ENCOURAGE COOPERATIVE, COLLABORATIVE AND INTEGRA-
TIVE ARRANGEMENTS AMONG PAYORS OF HEALTH CARE SERVICES AND HEALTH CARE
SERVICES PROVIDERS WHO MIGHT OTHERWISE BE COMPETITORS, UNDER THE ACTIVE
SUPERVISION OF THE CORPORATION AND THE COMMISSIONER. IT IS THE INTENT
OF THE STATE TO SUPPLANT COMPETITION WITH SUCH ARRANGEMENTS AND REGU-
LATION ONLY TO THE EXTENT NECESSARY TO ACCOMPLISH THE PURPOSES OF THIS
SECTION AND TO PROVIDE STATE ACTION IMMUNITY UNDER THE STATE AND FEDERAL
ANTITRUST LAWS TO THE PARTICIPATING HOSPITALS.
S 2. Subdivision 20 of section 2807 of the public health law, as added
by section 9 of part Q of chapter 56 of the laws of 2013, is amended to
read as follows:
20. Notwithstanding any contrary provision of law and subject to the
receipt of all necessary federal approvals and the availability of
federal financial participation, the commissioner is authorized to enter
into agreements with THE CORPORATION ESTABLISHED PURSUANT TO SECTION
TWENTY-EIGHT HUNDRED TWENTY-FOUR OF THIS ARTICLE, SUNY downstate medical
center, other public general hospitals, and/or with the sponsoring local
governments of such other public general hospitals, under which such
CORPORATION, facilities and/or such local government shall, by intergov-
ernmental transfer, fund the non-federal share of Medicaid funds made
available for Delivery System Reform Incentive [Payments ("DSRIPS")]
PROGRAM ("DSRIP") PAYMENTS to such facilities. Such non-federal share
payments shall be deemed voluntary and, further, such payments shall be
excluded from computations made pursuant to section one of part C of
chapter fifty-eight of the laws of two thousand five, as amended. In
addition, the CORPORATION, facilities, and/or the sponsoring local
governments of such facilities or the state may, by written notification
to the other parties to the agreement, cancel such agreement at any time
prior to the payment of the DSRIP funds.
S 3. Subdivision 21 of section 2807 of the public health law, as added
by section 10 of part Q of chapter 56 of the laws of 2013, is amended to
read as follows:
21. Notwithstanding any contrary provision of law and subject to the
receipt of all necessary federal approvals and the availability of
S. 5902 6
federal financial participation, the commissioner is authorized to enter
into agreements with THE CORPORATION ESTABLISHED PURSUANT TO SECTION
TWENTY-EIGHT HUNDRED TWENTY-FOUR OF THIS ARTICLE, SUNY downstate medical
center, other public general hospitals, and/or with the sponsoring local
governments of such other public general hospitals, under which such
CORPORATION, facilities and/or such local government shall, by intergov-
ernmental transfer, fund the non-federal share of Medicaid funds made
available for implementation of Medicaid Redesign Team initiatives,
WHICH MAY ONLY BE DISBURSED SUBJECT TO APPROPRIATION BY THE LEGISLATURE.
Such non-federal share payments shall be deemed voluntary and, further,
such payments shall be excluded from computations made pursuant to
section one of part C of chapter fifty-eight of the laws of two thousand
five, as amended. In addition, the CORPORATION, facilities, and/or the
sponsoring local governments of such facilities or the state may, by
written notification to the other parties to the agreement, cancel such
agreement at any time prior to the payment of the Medicaid Redesign Team
initiatives funds.
S 4. The opening paragraph of section 6 of part Q of chapter 56 of the
laws of 2013, amending the education law and the public health law,
relating to funding to SUNY Downstate Medical Center and directing the
restructuring of hospital, is amended to read as follows:
Notwithstanding any inconsistent provision of sections 112 and 163 of
the state finance law, section 355 of the education law, or section 142
of the economic development law, or any other law, [in academic fiscal
year 2013-14] the chancellor, for the purpose of implementing a sustain-
ability plan for Downstate Hospital is hereby authorized to enter into a
contract or contracts under this section without a competitive bid or
request for proposal process and provided further that such contract or
contracts shall not be subject to the requirements set forth in subdivi-
sions 2 and 3 of section 112 of the state finance law, provided, howev-
er, that:
S 5. This act shall take effect immediately and shall expire and be
deemed repealed six years from the date on which this act shall have
become a law.