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October 5, 2021

NYS DOH and DASNY Announce Availability of Funds for Residential Health Care and Other Providers

On September 30, the NYS Department of Health (DOH) and the Dormitory Authority of the State of New York (DASNY) announced that certain health care providers are eligible to apply for capital funds through the Statewide Health Care Facility Transformation Program III (Request for Applications #18406). A total of up to $208,294,869 is available under the program. Providers eligible for funding include health care providers that are determined by the DOH to meet a need for acute inpatient, outpatient, primary, home care, assisted living, adult care, hospice, or residential health care services in a community.

The objective of the program is to provide grants in support of capital projects that facilitate mergers, consolidations, acquisitions, and other activities that will, among other things, create financially sustainable systems of care, modernize infrastructure, and enhance the quality of care in residential health care facilities. The program also intends to fund projects that will improve telehealth capabilities.   

Expenditures eligible for funding will include construction, equipment, and renovation costs; asset acquisitions; costs related to the planning or design of a fixed asset, such as the preparation and review of engineering plans; and consultant fees associated with the preparation of certificate of need applications required for the proposed establishment or service expansion. 

Under the program, a minimum of $23,138,160 must be awarded to residential health care facilities. Funding of at least $529,611 will be available for community-based health care providers, including diagnostic and treatment centers; mental health and alcohol and substance abuse treatment clinics; clinics serving the intellectually and developmentally disabled population; and primary care, home care, and hospice providers. 

Because the awards are discretionary, there is no right of appeal, and the decision of the commissioner of health is final. For this reason, the DOH advises applicants to put forward their best efforts in thoroughly completing and fulfilling all the requirements of the request for applications.

An informational webinar about Request for Applications #18406 will be held on Thursday, October 14, 2021, at 3:00 p.m. EDT. Questions regarding the program are due by October 28, 2021, and can be emailed to Applications for Request for Applications #18406 must be submitted in Grants Gateway by 4:00 p.m. EST on Wednesday, January 12, 2022.

If you have any questions regarding the content of this alert or Request for Applications #18406, please contact Melissa Zambri, Health & Human Services Providers Co-Team Leader, at; Mary Connolly, associate, at; or another member of the firm’s Health & Human Services Providers Team.


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