Statewide Health Care Facility Transformation Program III Funding Announced

NY State Government: Week in Review

The New York State Department of Health and the Dormitory Authority of the State of New York have announced the availability of funds under the Statewide Health Care Facility Transformation Program III authorized in the 2018-2019 state budget. A total of up to $208,294,869 is available through this Request for Applications (RFA #18406) to health care providers to facilitate health care transformation activities. The RFA can be accessed here or through the Grants Gateway. Applications must be submitted in the Grants Gateway by 4 p.m. EST on Wednesday, January 12, 2022.

Awards will primarily be used to support capital projects that facilitate health care transformation activities, including merger, consolidation, acquisition or other activities intended to create financially sustainable systems of care; to preserve or expand essential health care services; to modernize obsolete facility physical plants and infrastructure; to foster participation in alternative payment arrangements; to improve health information technology infrastructure, including telehealth; and for residential health care facilities, to increase the quality of resident care or experience.

Non-capital projects including debt retirement, working capital, and other non-capital expenditures that are related to an applicant’s capital project and support the health care transformation activities listed above are also eligible for award, but must be submitted in a separate application and identified as non-capital. Awards will be made under this program on a noncompetitive basis at the discretion of the commissioner of health and evaluated pursuant to the statutory criteria.

Eligible applicants include general hospitals, regional perinatal centers, residential care facilities, adult care facilities, assisted living programs, children’s residential treatment facilities and community-based health care providers (which include diagnostic and treatment centers, Article 31 mental health clinics, Article 32 alcohol and substance abuse treatment clinics, Article 16 clinics, home care providers, hospices, and primary care providers).

The RFA incorporates minimum award amounts to be made to certain provider types established pursuant to Section 2825-f of the Public Health Law. Approximately $180 million is available to eligible providers after the minimum award amounts are allocated to certain provider types, which include:

  • A minimum of $529,611 must be awarded to community-based health care providers, which are defined as diagnostic and treatment centers, mental health and alcohol and substance abuse treatment clinics, Article 16 clinics, home care providers, hospices, and primary care providers;
  • A minimum of $23,138,160 must be awarded to residential health care facilities; and
  • Up to $5,000,000 may be made available to regional perinatal centers to establish telehealth applications.

Key dates included in the RFA are as follows:

  • October 8, 2021: Applicant registration for webinar (details will be posted to Grants Gateway)
  • October 14, 2021: Applicant webinar
  • October 28, 2021: Applicant questions due
  • November 30, 2021 (on or about): Answers to questions posted
  • January 12, 2022: Applications due at 4 p.m. EST
  • October 1, 2022: Earliest anticipated date that awardee contracts would begin


pursuant to New York DR 2-101(f)

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