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SB5906 Text:

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

                                        5906--A

                              2013-2014 Regular Sessions

                                   I N  S E N A T E

                                     June 21, 2013
                                      ___________

       Introduced  by Sens. MONTGOMERY, PARKER -- read twice and ordered print-
         ed, and when printed to be committed to  the  Committee  on  Rules  --
         committee  discharged,  bill amended, ordered reprinted as amended and
         recommitted to said committee

       AN ACT to amend part Q of chapter 56 of the laws of  2013  amending  the
         education  law  and  other  laws relating to funding to SUNY Downstate
         Medical Center, in relation to a sustainability plan for a hospital

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

    1    Section  1.  Legislative  intent.  The  legislature  hereby  finds and
    2  declares that a strong academic medical center which  controls  its  own
    3  and its affiliated clinical facilities is the central organizing princi-
    4  ple  of  urban  health  care  in America in 2013. SUNY Downstate Medical
    5  Center must fully maintain its public status and be the lead institution
    6  in meeting the significant unmet health care needs in Brooklyn including
    7  providing expanded primary and ambulatory care in the neighborhoods that
    8  need it the most. All other states' experience,  as  well  as  the  last
    9  seven  years of experience in Brooklyn, indicates that if SUNY Downstate
   10  does not take leadership of this mission it will not get done.
   11    Over the next three years, SUNY Downstate Hospital should  develop  up
   12  to  four  decentralized, freestanding primary and ambulatory care satel-
   13  lites.  Funding for these satellites is anticipated from monetizing  the
   14  net  asset  value  of  real estate acquired with the Long Island College
   15  Hospital while still operating Long Island College Hospital as a  health
   16  care  facility.  Two  thirds  of  the net asset value of the Long Island
   17  College Hospital real estate will be devoted to subsidy  of  SUNY  Down-
   18  state  Hospital  and  Long Island College Hospitals' operations during a
   19  three year transition and development period.
   20    The implementation of this legislation will make SUNY Downstate Hospi-
   21  tal sustainable and restore the state subsidy to its historic level. Its
   22  implementation is an alternative to closing LICH and laying off a  mini-

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11556-03-3
       S. 5906--A                          2

    1  mum  of 600 health care workers in Brooklyn which has one of the highest
    2  unemployment rates in New York. It makes no sense to lay off health care
    3  workers if they can be  retrained  to  provide  the  primary  care  that
    4  central and western Brooklyn desperately needs.
    5    S  2.  Part Q of chapter 56 of the laws of 2013 amending the education
    6  law and other laws relating to funding to SUNY Downstate Medical Center,
    7  is amended by adding a new section 5-a to read as follows:
    8    S 5-A. THE SUSTAINABILITY PLAN ADOPTED PURSUANT  TO  SECTION  FIVE  OF
    9  THIS  ACT  SHALL  NOT  BE  IMPLEMENTED  UNTIL  IT CONTAINS THE FOLLOWING
   10  PROVISIONS. (A) SUNY DOWNSTATE HOSPITAL WILL OPERATE UP TO  FOUR  DECEN-
   11  TRALIZED,  FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES IN COMMU-
   12  NITY BASED SETTINGS.  THESE SATELLITES WILL BE STAFFED BY  EMPLOYEES  OF
   13  SUNY  DOWNSTATE  HOSPITAL  WHO  SHALL  MAINTAIN THEIR CURRENT COLLECTIVE
   14  BARGAINING REPRESENTATION, OR, FOR SATELLITES LOCATED IN  THE  COMMUNITY
   15  SERVED  BY  LONG  ISLAND  COLLEGE  HOSPITAL  BY EMPLOYEES OF LONG ISLAND
   16  COLLEGE HOSPITAL WHO SHALL MAINTAIN THEIR CURRENT COLLECTIVE  BARGAINING
   17  REPRESENTATION.  THE FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES
   18  SHALL OPERATE AT LEAST SIXTEEN HOURS A DAY,  PROVIDE  A  FULL  RANGE  OF
   19  OUT-PATIENT AND AMBULATORY SERVICES AS DETERMINED BY COMMUNITY NEED, AND
   20  COLLECTIVELY  EMPLOY  AT LEAST SIX HUNDRED HEALTH CARE PROFESSIONALS AND
   21  SUPPORT STAFF. THESE FREESTANDING PRIMARY AND AMBULATORY CARE SATELLITES
   22  MUST BE ESTABLISHED NO LATER THAN THREE YEARS  AFTER  THE  ENACTMENT  OF
   23  THIS SECTION.
   24    (B)  THE  STATE  SHALL  MONETIZE  THE  NET  ASSET VALUE OF REAL ESTATE
   25  ACQUIRED WITH THE LONG ISLAND COLLEGE  HOSPITAL  WHILE  STILL  OPERATING
   26  LONG  ISLAND COLLEGE HOSPITAL AS A HEALTH CARE FACILITY. THE STATE DIVI-
   27  SION OF BUDGET SHALL DEVELOP A PROCESS THAT MAXIMIZES THE VALUE  OF  THE
   28  ASSETS OF LONG ISLAND COLLEGE HOSPITAL AND SHALL CONSIDER THE FOLLOWING:
   29  (I) LEASING ALL OR SOME OF THE PROPERTY; (II) A SALE-LEASEBACK OF ALL OR
   30  SOME  OF  THE  PROPERTY; AND (III) ESTABLISHING A REAL ESTATE INVESTMENT
   31  TRUST, WITH THE PROVISO THAT THE REAL ASSETS CONTINUE TO BE USED, IN ANY
   32  OF THESE ARRANGEMENTS, FOR THE PROVISION  OF  INPATIENT  AND  OUTPATIENT
   33  HEALTH  SERVICES. THE ASSETS OF THIS PROCESS SHALL BE USED TO RETIRE THE
   34  LIABILITIES OF LONG ISLAND COLLEGE  HOSPITAL  AND  TO  PROVIDE  START-UP
   35  FUNDING  FOR  THE  FREESTANDING  PRIMARY  AND AMBULATORY CARE SATELLITES
   36  ESTABLISHED PURSUANT TO SUBDIVISION (A) OF THIS SECTION. SUNY  DOWNSTATE
   37  HOSPITAL  IS AUTHORIZED TO APPLY FOR AND RECEIVE FUNDING FROM ANY AVAIL-
   38  ABLE STATE, LOCAL, AND/OR FEDERAL  SOURCES  TO  ASSIST  IN  ESTABLISHING
   39  FREESTANDING  PRIMARY  AND AMBULATORY CARE SATELLITES INCLUDING, BUT NOT
   40  LIMITED TO, STATE GRANTS  AVAILABLE  PURSUANT  TO  SECTION  TWENTY-EIGHT
   41  HUNDRED  EIGHTEEN  OF THE PUBLIC HEALTH LAW AND ACCELERATION OF PAYMENTS
   42  PURSUANT TO SECTION TWENTY-EIGHT HUNDRED SEVEN-K OF  THE  PUBLIC  HEALTH
   43  LAW.
   44    (C)  SUNY DOWNSTATE COLLEGE OF MEDICINE SHALL DEVELOP A CURRICULUM FOR
   45  THE EDUCATION OF  RESIDENT  PHYSICIANS  IN  OUT-PATIENT  AND  AMBULATORY
   46  SERVICES  THAT SHALL BE IMPLEMENTED IN THE FOUR FREESTANDING PRIMARY AND
   47  AMBULATORY CARE SATELLITES ESTABLISHED PURSUANT TO  SUBDIVISION  (A)  OF
   48  THIS SECTION.
   49    S 3. This act shall take effect immediately.
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