Statewide health care facilities transformation program phase III

On September 30^th, New York State Department of Health (NYSDOH) and the Dormitory Authority of New York State (DASNY) released a Request For Applications (RFA) for their Statewide Health Care Facility Transformation Program III (SHCFTP III). A total of up to $208M is available to fund new awards under this RFA, which is open to certain provider organizations licensed under:

• Articles 28, 36, or 40 of the NYS Public Health Law
• Articles 31, 32, or 16 of the NYS Mental Hygiene Law
• Article 7
• Section 461-1 of the NYS Social Services Law

This can also apply to New York State licensed primary care providers.  

The purpose of the RFA is to support provider sponsored capital projects. However, with the intention of creating a financially sustainable system of care, it may also include non-capital expenses such as debt restructuring associated with a merger, consolidation, or significant corporate restructuring activity that is part of an overall transformation plan. Additionally, the RFA encourages applicants to increase quality and the consumer experience as well as improving health information technology. Funding is not available for day-to-day operating costs.  Although the Delivery System Reform Incentive Payment (DSRIP) Program ended in 2020, NYSDOH still expects eligible projects to be consistent with DSRIP Program principles of improving core population health, patient outcomes, and patient experience, as well as consistent with the transition to a value-based payment system.

Eligible applicants include, but are not limited to:

• Federally Qualified Health Centers
• Hospitals
• Behavioral health and substance use disorder organizations

Eligible projects include, but are not limited to: 

• Construction costs
• Renovation costs
• Equipment purchases
• Asset acquisitions
• Planning costs related to Certificate of Need applications or facility design and feasibility studies

To review the Statewide Health Care Facility Transformation Program RFA, please click here. Key information and dates are as follows: