§ 2801-e. Voluntary residential health care facility rightsizing\ndemonstration program. 1. The voluntary residential health care facility\nrightsizing demonstration program is intended to be a flexible and\ninnovative approach to dealing with excess capacity in residential\nhealth care facilities due to changes in care delivery and other\nfactors. The demonstration is designed to promote the development of\nless restrictive and less institutional long-term care programs and\nservices; discourage inappropriate nursing home placements; generate\nmedicaid savings to the state and localities; and assist residential\nhealth care facilities with the financial implications of declining\noccupancies.\n 2. Notwithstanding any inconsistent provision of law or regulation to\nthe contrary, a residential health care facility, as defined in section\ntwenty-eight hundred one of this article, may apply to temporarily\ndecertify or permanently convert a portion of its existing certified\nbeds to another type of program or service under the voluntary\nresidential health care facility rightsizing demonstration program. The\ncommissioner may approve temporary decertifications and permanent\nconversions of beds totaling no more than five thousand residential\nhealth care facility beds on a statewide basis under this program. Such\napprovals shall reflect, to the extent practicable, participation by a\nvariety of residential health care facilities based on geography, size\nand other pertinent factors.\n 3. For this purpose, a residential health care facility may submit, in\na format and within timeframes specified by the commissioner, an\napplication to temporarily decertify beds, or to permanently convert\nbeds under this demonstration. Each such application shall include an\nestimate of the cost savings to the Medicaid program that would result\nfrom the proposal within the applicant facility. The commissioner shall\nbegin soliciting applications within one hundred eighty days of the\neffective date of this section, provided however that multiple\nsolicitations for proposals may be issued. In considering such\napplications, the commissioner shall take into account:\n (a) the potential for improved quality of care and quality of life for\nconsumers;\n (b) the likelihood that the proposal would result in cost savings to\nthe Medicaid program;\n (c) residential health care facility capacity and estimated public\nneed in the planning area in which the applicant is located;\n (d) the availability of less restrictive and less institutional\nlong-term care programs and services, as defined in this section, in the\nplanning area; and\n (e) the potential for improving the financial viability of the\napplicant facility or facilities.\n 4. Any reductions in the number of operational residential health care\nfacility beds resulting from this demonstration shall not be considered\nto create additional public need for residential health care facility\nbeds under this article.\n 5. (a) Subject to the approval of the commissioner and the director of\nthe budget, a residential health care facility may temporarily decertify\nbeds for up to five years. Such beds will remain on the facility's\nlicense during and after the five-year period. Temporarily decertified\nbeds may, with the prior approval of the commissioner and the director\nof the budget be reactivated in whole or in part at any time on or after\none year after the effective date of temporary decertification by the\nfacility and may be reactivated with the prior approval of the\ncommissioner and the director of the budget after the five-year period\nhas ended. A residential health care facility that reactivates\ntemporarily decertified beds may not temporarily decertify such beds\nagain during the demonstration. The commissioner may require the\nimmediate reactivation of such beds if necessary to respond to emergency\nsituations and/or facility closures. In the event the commissioner\nrequires s
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