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FOR RELEASE: Immediate, Wednesday, May 24, 2006

Governor Announces $269 Million Available in Grants to Strengthen NY’s Health-Care System

Pataki Urges Providers to Apply for HEAL-NY Funding

Governor George E. Pataki today announced the availability of more than $269 million in grant funding for hospitals and nursing homes to further strengthen New York’s world-class health care system. The funding announced today is part of the State’s Healthcare Efficiency and Affordability Law for New Yorkers (HEAL-NY) and will be dedicated to those health care facilities that demonstrate a commitment to investing in the restructuring and reconfiguration of their facilities to further improve the delivery of quality care to patients.

“New York’s health care system is recognized as a national leader in many areas, including primary and preventive care, biomedical research and patient safety initiatives,” Governor Pataki said. “As health care continues to evolve at a fast pace, we cannot stand idly by, we must push forward, work with New York’s health care providers to ensure that our citizens have access to the most advanced, high quality health care available. We urge health care providers across the state to apply for HEAL-NY funding.”

As part of HEAL-NY, the State Department of Health and the Dormitory Authority have issued a Request for Grant Applications (RGA) to hospitals and nursing homes statewide. This funding will help improve the quality, stability and efficiency of the delivery of health care in New York State by supporting the reconfiguration and rightsizing of health-care facilities. The projects may include the creation or expansion of Critical Access Hospitals and free-standing emergency rooms with a specified number of medical/surgical beds for inpatient services.

The projects may also include the advancement of projects in diagnostic imaging, ambulatory surgery, outpatient therapy, adult day care or assisted living. The projects may promote mergers of facilities, consolidation of services in particular facilities, and the creation of new regional health care networks.

The initiative calls for facilities that apply to take steps to ensure that their proposed project is consistent with the goals and priorities of the Health Department, the Dormitory Authority and the Commission on Health Care in the 21st Century in advancing policies and initiatives that promote efficiency and stability in New York’s health care system.

Dennis Rivera, President of 1199 SEIU United Healthcare Workers East, said, “HEAL-NY is an absolutely critical program that will enable our State's health-care facilities and our dedicated health-care workers to meet the many challenges facing us. These funds will insure that the members of our union can continue to provide the quality care that our patients need and deserve.”

Daniel Sisto, President of the Healthcare Association of New York State, said, “The continuous evolution of medicine and patient care makes it essential that health-care providers keep pace with the demands of emerging techniques, technology and modes of health care delivery. This funding will help HANYS member facilities in their ongoing effort to stay at the very forefront of patient care. We strongly encourage our members to apply for it.”

Kenneth E. Raske, President of the Greater New York Hospital Association, said, “The ultimate beneficiaries of this critically important funding are New York's hospitals and, more importantly, the patients they serve. These funds will help providers implement vital initiatives to improve patient care, and we salute Governor Pataki for his leadership in making HEAL-NY a reality.”

State Health Commissioner Antonia C. Novello, M.D., M.P.H., Dr.P.H., said, “This administration is committed to supporting the creation and advancement of health-care initiatives that promote the delivery of high-quality health care to New Yorkers. Our priority is to implement policies and programs that ensure the viability of our health-care system and preserve it well into the 21st century.”

DASNY Executive Director Maryanne Gridley said, “Over the years, the Dormitory Authority has provided access to tax-exempt capital funding that has built New York’s world-class health care system. Governor Pataki’s leadership in developing the HEAL-NY program recognizes the need for significant restructuring in how hospitals and nursing homes deliver services. We are pleased to assist the industry’s reconfiguration through State capital grants that will provide reinvestment in a responsible fashion.”

In general, hospitals and nursing homes applying for funding under the HEAL-NY initiative are expected to implement the following objectives:

The Commission on Health Care in the 21st Century is a broad-based, non-partisan panel created by Governor Pataki and the New York State Legislature to undertake a rational, independent review of health care capacity and resources in New York State. It was created to ensure that the regional and local supply of hospital and nursing home facilities is best configured to appropriately respond to community needs for high-quality, affordable and accessible care, with meaningful efficiencies in delivery and financing that promote infrastructure stability.

Health care providers interested in applying for HEAL NY grant funding may obtain an application by visiting the New York State Department of Health’s web site at www.nyhealth.gov .