S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        9421--A
                                 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  --  committee discharged, bill amended, ordered
         reprinted as amended and recommitted to said committee
       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:
    1    Section 1. Subdivision 6 of section 2807-s of the public health law is
    2  amended by adding a new paragraph (g) to read as follows:
    3    (G) A FURTHER GROSS ANNUAL AMOUNT ALLOCATED TO  THE  ROCHESTER  REGION
    4  BEGINNING  JANUARY  FIRST, TWO THOUSAND FIFTEEN SHALL BE ONE HUNDRED TEN
    5  MILLION DOLLARS. FOR CALENDAR YEARS TWO THOUSAND SIXTEEN AND THEREAFTER,
    6  THAT AMOUNT SHALL BE INDEXED FOR STATEWIDE HEALTH CARE INFLATION  IN  AN
    7  AMOUNT  DETERMINED  BY  THE  COMMISSIONER. SUCH AMOUNT SHALL BE EXCLUDED
    8  FROM ALL COMPUTATIONS AND ADJUSTMENTS MADE PURSUANT TO PARAGRAPH (B)  OF
    9  SUBDIVISION  SIX  OF  SECTION TWO THOUSAND EIGHT HUNDRED SEVEN-T OF THIS
   10  ARTICLE.
   11    S 2. Subdivision 7 of section 2807-s  of  the  public  health  law  is
   12  amended by adding a new paragraph (d) to read as follows:
   13    (D)(I)  FIVE  MILLION DOLLARS OF THE FUNDS ALLOCATED PURSUANT TO PARA-
   14  GRAPH (G) OF SUBDIVISION SIX OF THIS SECTION SHALL BE DISTRIBUTED  TO  A
   15  REGIONAL HEALTH PLANNING ORGANIZATION FOR USE IN FUNDING REGIONAL HEALTH
   16  CARE  IMPROVEMENT  PROJECTS.  THE  REGIONAL HEALTH PLANNING ORGANIZATION
   17  SHALL DISBURSE THOSE FUNDS IN ACCORDANCE WITH THIS PARAGRAPH, OR  PURSU-
   18  ANT  TO  GRANTS  MADE  BY THE ORGANIZATION IN ACCORDANCE WITH THIS PARA-
   19  GRAPH. DISTRIBUTION OF ANY GRANT  FUNDS  ADMINISTERED  BY  THE  REGIONAL
   20  HEALTH  PLANNING  ORGANIZATION  SHALL BE PURSUANT TO A MULTI-STAKEHOLDER
   21  PROCESS. THE REGIONAL HEALTH CARE IMPROVEMENT GRANT FUND PROJECTS  SHALL
   22  INCLUDE  THREE  MILLION  DOLLARS  PER YEAR FOR A SHARED COMMUNITY HEALTH
   23  INFRASTRUCTURE DESIGNED ON THE BASIS OF COLLABORATIVE COMMUNITY EFFORTS,
   24  INCLUDING  COMMUNITY-WIDE  PATIENT  SAFETY   AND   QUALITY   IMPROVEMENT
   25  PROGRAMS, ELIMINATION OF HEALTH DISPARITIES, HEALTH INFORMATION TECHNOL-
   26  OGY, AND TWO MILLION DOLLARS TO FUND THE REGIONAL HEALTH PLANNING ORGAN-
   27  IZATION.   THE HEALTH PLANNING ORGANIZATION SHALL USE REASONABLE EFFORTS
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14795-02-4
       A. 9421--A                          2
    1  TO GENERATE MATCHING FUND CONTRIBUTIONS IN THE FORM OF GRANTS, DONATIONS
    2  AND OTHER CONTRIBUTIONS.
    3    (II)  ONE HUNDRED FIVE MILLION DOLLARS OF THE FUNDS ALLOCATED PURSUANT
    4  TO PARAGRAPH (G) OF SUBDIVISION SIX OF THIS SECTION SHALL  BE  ALLOCATED
    5  TO A NOT-FOR-PROFIT ORGANIZATION OR ASSOCIATION THAT HAS BEEN DESIGNATED
    6  THROUGH  A MULTI-STAKEHOLDER PROCESS, WHICH SHALL DISTRIBUTE THOSE FUNDS
    7  TO ALL OF THE HOSPITALS IN THE REGION ENGAGED IN GRADUATE MEDICAL EDUCA-
    8  TION IN ORDER TO FUND GRADUATE MEDICAL EDUCATION.  ONE  HUNDRED  MILLION
    9  DOLLARS  OF  SUCH FUNDING SHALL BE DISTRIBUTED PROPORTIONALLY TO EACH OF
   10  THE HOSPITALS IN AMOUNTS WHICH REFLECT EACH HOSPITAL'S CURRENT COSTS FOR
   11  GRADUATE MEDICAL EDUCATION, AND FIVE  MILLION  DOLLARS  OF  UNREIMBURSED
   12  ADMINISTRATIVE  AND OTHER GRADUATE MEDICAL EDUCATION RELATED COSTS SHALL
   13  BE ALLOCATED IN THE SAME PROPORTIONS. ONE HUNDRED MILLION DOLLARS OF THE
   14  DISTRIBUTED FUNDS SHALL BE IN LIEU OF CURRENT FUNDING OF SUCH  COSTS  AS
   15  CURRENTLY INCLUDED IN CLAIMS PAYMENTS BY SPECIFIED THIRD PARTY PAYORS IN
   16  THE  REGION  RESULTING  IN  A REDUCTION IN THE AMOUNT PAID BY SUCH THIRD
   17  PARTY PAYORS IN AN AMOUNT EQUAL TO  THE  ONE  HUNDRED  MILLION  DOLLARS.
   18  PRIOR  TO  THE  ALLOCATION  OF  FUNDS  PURSUANT TO THIS SUBDIVISION, THE
   19  PARTICIPATING HOSPITALS AND SUCH THIRD  PARTY  PAYORS  SHALL  DEVELOP  A
   20  PROCESS  FOR  THE  DISTRIBUTION  OF SUCH FUNDS AND A MECHANISM TO ENSURE
   21  THAT THE REQUIRED REDUCTION OF PAYMENTS BY SUCH THIRD  PARTY  PAYORS  TO
   22  THE  HOSPITALS OCCURS. THE AFFECTED HOSPITALS AND THE THIRD PARTY PAYORS
   23  IN THE REGION SHALL SELECT AN INDEPENDENT THIRD PARTY TO  DETERMINE  THE
   24  REDUCTIONS WHICH SHALL OCCUR FROM PREVIOUSLY NEGOTIATED RATES FOR CLAIMS
   25  PAYMENTS  TO  SUCH HOSPITALS BY SPECIFIED THIRD PARTY PAYORS IN ORDER TO
   26  AVOID DUPLICATE FUNDING PURSUANT TO THIS PARAGRAPH.
   27    S 3. This act shall take effect January  1,  2015,  provided  however,
   28  that the amendments made to section 2807-s of the public health law made
   29  by  sections  one and two of this act shall not affect the expiration of
   30  such section and shall be deemed to expire therewith.