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Statewide Health Care Facility Transformation Program II (Phase 2)

Grants to New York Hospitals and Health Service
Providers to Expand and Improve Facilities

Agency Type:

State

Funding Source:

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New York State Department of Health (DOH), Office of Primary Care and Health Systems Management and Dormitory Authority of the State of New York (DASNY)

Conf. Date:

01/31/18

LOI Date:

02/23/18

Deadline Date:

03/22/18 4:00 PM EST

Description:

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Grants to New York hospitals, health care facilities, and other health care providers to protect and strengthen health care access for communities throughout the state. Nonprofit applicants must prequalify in the online grants system prior to applying. Funding is available for capital projects that expand or improve facilities, as well as other projects that strength health care service systems.

I. Introduction:

The New York State Department of Health (DOH) and the Dormitory Authority of the State of New York (DASNY) announce the availability of funds under the Statewide Health Care Facility Transformation Program II (SHCFTP II), as established pursuant to Section 2825-e of the Public Health Law (PHL), Chapter 54 of the Laws of 2017, and Section 1680-r of the Public Authorities Law (PAL), to provide grants in support of capital projects, debt retirement, working capital or other non-capital projects directly related to a capital project that facilitate health care transformation activities including, but not limited to, merger, consolidation, acquisition or other activities intended to create financially sustainable systems of care or preserve or expand essential health care services. Grants shall not be made to support general day-to-day operating costs not related to the start-up expenses of the Eligible Project.

In determining awards, as described in Section V. C., Review and Award Process, priority shall be given to projects that were not awarded a grant in response to the RFA for the SHCFTP I (RFA # 1607010255). However, such Eligible Applicants must submit a qualifying grant application in response to this SHCFTP II Phase 2 RFA and satisfy all applicable SHCFTP II RFA requirements.

Projects shall not receive awards under both this RFA and the Kings County Health Care Transformation Program (PHL §2825-a) or the Oneida County Health Care Transformation Program (PHL §2825-b).

To receive funding, the Eligible Applicant must demonstrate how the proposed use of the grant will strengthen and protect continued access to health care services in communities. Eligible Applicants should describe:

i. Steps to be taken to promote an integrated, patient-centered model of health care delivery or to create a financially sustainable system of care or to preserve or expand the ongoing availability of essential health care services to the people of the community or communities served by the Eligible Applicant.

ii. How the Eligible Project will maintain or improve the financial condition of the Eligible Applicant.

iii. An estimate of the total costs of carrying out health care transformation activities (other than the Eligible Project as hereafter defined) and the sources of funding for such costs.

iv. Steps to be taken to engage the community in the development of the Eligible Project.

Health care services developed as a result of the Eligible Project should be consistent with Delivery System Reform Incentive Payment (DSRIP) Program principles of improving core population health, patient outcomes and patient experience, as well as incorporate, as part of a sustainable business model, a transition to a payment system which emphasizes cost efficiency and quality outcomes (value) over service volume.

Applicants are hereby advised that, in accordance with Public Health Law 2825-e and Chapter 54 of the Laws of 2017, awards made under this RFA are determined on a non-competitive, discretionary basis. Funding will be awarded at the discretion of the Commissioner of Health for purposes described in this RFA. Without limitation to this authorization, the Commissioner of Health may consult with the President of DASNY, DOH and DASNY professional staff, and any other internal or external experts or local health care constituents as appropriate from time to time at any time in the evaluation of applications received pursuant to this RFA. The decision to award, or not to award, or to award a grant at a funding level that is less than the amount requested by the applicant, is discretionary and cannot be appealed.

As these awards are discretionary, there is no right of appeal and the decision of the Commissioner of Health is final. As such, applicants are advised to put forward their best efforts in thoroughly completing and fulfilling all the requirements of the RFA. While the award is discretionary, the criteria listed in PHL 2825-e and Chapter 54 of the Laws of 2017 will be utilized to make the awards.

The decision not to fund an application will be communicated by letter. Based on the number of applicants, DOH shall have the sole discretion of whether or not to provide an opportunity for non-successful applicants to request a debriefing to be conducted after the announcement of awards. Comparisons with other grant applications will not be made during a debriefing.

DOH’s determination of applicable terms and conditions of award or a denial of a request to change the terms and conditions is discretionary and not subject to appeal.

Eligible Projects:

An “Eligible Project” must include Eligible Expenses, as defined herein. Projects shall not receive an award under both this RFA and the Kings County Health Care Transformation Program (PHL §2825-a) or the Oneida County Health Care Transformation Program (PHL §2825-b).

Expenditures eligible for funding under SHCFTP II (“Eligible Expenses”) are expected to be for capital projects, which may include, but are not limited to:
-The planning or design of the acquisition, construction, demolition, replacement, major repair or renovation of a fixed asset or assets, including the preparation and review of plans and specifications including engineering and other services;
-Construction costs;
-Renovation costs;
-Asset acquisitions;
-Equipment costs; and
-Consultant fees and other expenditures associated with the preparation of Certificate of Need (CON) applications required for the proposed establishment action, construction activity or service expansion (so long as the costs are incurred in connection with original construction and not an ownership transfer).

However, based on the initial review of awards in Phase 1, approximately $123,486,576 of the $203,782,888 available to be awarded in Phase 2 may be awarded for non-capital projects or purposes may also be eligible for funding under this solicitation (“Other Eligible Expenses”) pursuant to the appropriation authority granted by Chapter 54 of the Laws of 2017. Such non-capital expenditures may include:

-Debt restructuring including costs to reduce, retire or refinance long-term liabilities such as mortgage, bank loans, capital leases and other liabilities, payments of debt service for such long-term liabilities, and costs for restructuring including professional fees, penalties, and interest; and

-Start-up operating expenses directly connected to the Eligible Project for which funding is being sought under this RFA.

Eligible Applicants must include a robust description of the Eligible Project and justification for all expenditures included in the Project Budget as well as a discussion of how the expenditure relates to the Eligible Project. If applicable to the Eligible Project, it is understood that design plans and specifications are unlikely to be available at this stage of Project development. However, an Eligible Applicant should be able to describe the project elements and their anticipated costs in sufficient detail for the reviewer to make a judgment on the reasonableness of the anticipated costs and how the Eligible Applicant estimated those costs.

If applicable to the Eligible Project, Eligible Applicants may subcontract components (sub- projects) of the scope of work. Eligible Applicants that plan to subcontract are expected to describe the specific components of the scope of work to be performed through subcontracts (the sub-projects), and to also identify the subcontracting entities in the application. Applicants should note that the Eligible Applicant, if awarded a grant under this RFA, will have overall responsibility for all contract activities, including those performed by subcontractors, and will be the primary contact for the DOH. All subcontractors must be approved by the Department of Health.

GrantWatch ID#:

GrantWatch ID#: 174655

Estimated Total Program Funding:

$203,782,888

Term of Contract:

It is anticipated that the term of the MGC under the Statewide Health Care Facility Transformation Program II will begin on July 6, 2018 and run for a period of up to five years (consistent with the accepted construction schedule).

Continued funding throughout this period is contingent upon availability of funding and state budget appropriations.

Additional Eligibility Criteria:

The minimum eligibility requirements for entities responding to this RFA have been established in accordance with PHL section 2825-e.

Each “Eligible Applicant” must meet all the following criteria to be eligible to receive grant funding under this RFA:

(a) Be a legally existing organization and capable of entering into a binding Master Grant Contract (MGC) with DOH.

(b) Be one of the following types of provider organizations:
-General Hospitals licensed under Article 28 of the PHL;
-Residential health care facilities licensed under Article 28 of the PHL;
-Community-based health care providers which, in accordance with statute and for purposes of this RFA, are defined as: diagnostic and treatment centers certified or licensed under Article 28 of the PHL; mental health clinics certified or licensed under Article 31 of the Mental Hygiene Law (MHL); alcohol and substance abuse treatment clinics certified or licensed under Article 32 of the MHL; primary care providers; and home care providers certified or licensed under Article 36 of the PHL.

(c) Be deemed by the Commissioner to be a provider that fulfills or will fulfill (as evidenced by the application for this program) a health care need for acute inpatient, outpatient, primary, or residential health care services in a community; and,

(d) At the time the application is submitted, and at all times thereafter, applicants MUST be prequalified, if not exempt, in the New York State Grants Gateway. Please refer to Section IV.M. Vendor Prequalification for Not-for-Profits for details on the steps that must be completed to meet registration and prequalification requirements.

Excluded Expenses are not eligible for funding under SHCFTP II. Excluded expenses include general ongoing operating costs applicable to day-to-day operations and not directly related to the start-up operating costs of the Eligible Project for which funding is being sought under this RFA. Costs not eligible for funding under SHCFTP II include general ongoing operating expenses such as routine supplies; utilities; operating lease payments, equipment with a useful life less than three years; ongoing, routine training and maintenance costs related to IT projects; and employee salaries and benefits.

Disallowed costs include expenditures identified in the Eligible Project Budget that are Excluded Expenses or are not sufficiently described and/or justified in type or amount by the applicant or are considered to be unrelated to the proposed Eligible Project. Disallowed costs will be excluded from the amount considered as the grant request.

Pre-proposal Conference:

It is anticipated that an Applicant Webinar will be held on or about January 31, 2018.

Information will be posted on the Grants Gateway when available. Potential applicants should check the Grants Gateway for details about the Applicant Webinar. Interested parties may also send an e-mail to the address listed below to request notification when registration information becomes available.

Failure to attend the Applicant Webinar will not preclude the submission of an application.

Pre-Application Information:

Based on the funding awarded in Phase 1, a total of up to $203,782,888 is available under this RFA (herein, Phase 2), to health care providers that are deemed by the Commissioner to fulfill or will fulfill a health care need for acute inpatient, outpatient, primary, home care or residential health care services in a community. A minimum of $46,995,507 ($75,000,000 minus $28,004,493) of this total amount is available for community-based health care providers, which are defined as diagnostic and treatment centers, mental health and alcohol and substance abuse treatment clinics, primary care providers and home care providers.

All not-for-profit vendors subject to prequalification are required to prequalify in the Grants Gateway prior to grant application and execution of contracts.

Prospective applicants may complete and submit a letter of interest. Prospective applicants may also use the letter of interest to receive notification when updates/modifications are posted; including responses to written questions.

Submission of a letter of interest is not a requirement or obligation upon the applicant to submit an application in response to this RFA. Applications may be submitted without first having submitted a letter of interest.

Once the application is complete, prospective grantees are strongly encouraged to submit their applications at least 48 hours prior to the due date and time. This will allow sufficient opportunity for the applicant to obtain assistance and take corrective action should there be a technical issue with the submission process.

Timeline:
-Applicant Webinar: January 31, 2018
-Questions Due: February 9, 2018
-Questions, Answers and Updates Posted (on or about): February 21, 2018
-Letters of Interest Due: February 23, 2018
-Applications Due: March 14, 2018 by 4:00 PM EST - Extended to March 22, 2018
- Anticipated Award Date: Tuesday, April 24, 2018
-Estimated Contract Start Date: July 6, 2018

To learn more about this opportunity, please go to the NYS Grants Gateway at the following web address:
https://grantsgateway.ny.gov/Intelligrants_NYSGG/module/nysgg/gggrantmodule.aspx

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Joan Cleary Miron, MPH
Director, Health Care Facility Transformation Program Implementation Team
New York State Department of Health
Office of Primary Care and Health Systems Management
1805 Corning Tower
Albany, NY 12237
Statewide2@health.ny.gov

Funding or Pin Number:

Request for Applications #17648 / Grants Gateway ID: DOH01-SHCFT2-2018

URL for Full Text (RFP):

Geographic Focus:

USA: New York City;   New York