§ 2808. Residential health care facilities; rates of payment.\n 1-a. Notwithstanding sections one hundred twelve and one hundred\nsixty-three of the state finance law and any other inconsistent\nprovision of law, the commissioner shall make grants to public\nresidential health care facilities without a competitive bid or request\nfor proposal process for the purposes of addressing the overall\nincreases in input costs borne by such facilities. Such modifications\nshall also be primarily intended to promote the provision of quality\nhealth care, quality operation, updated technology and improved staff\ndevelopment and support by such facilities. Such grants shall be in the\nfollowing aggregate amounts for the following periods: five million for\nthe period April first, two thousand six through March thirty-first, two\nthousand seven; fifteen million for the period April first, two thousand\nseven through March thirty-first, two thousand eight; and ten million\nfor the period April first, two thousand eight through March\nthirty-first, two thousand nine.\n The amount allocated to each eligible public residential health care\nfacility for each period shall be calculated as the result of (i) the\ntotal payment for each period multiplied by (ii) the ratio of patient\ndays for patients eligible for medical assistance pursuant to title\neleven of article five of the social services law provided by the public\nresidential health care facility, divided by the total of such patient\ndays summed for all eligible public residential health care facilities.\nGrants under this subdivision shall be made on a quarterly basis.\n * 2. (a) The commissioner, with the approval of the state hospital\nreview and planning council, shall promulgate regulations to be\neffective the first day of January, nineteen hundred seventy-eight,\nrelating the rate of payment for each residential health care facility\nto real property costs.\n (b) Such regulations may differentiate based upon the form of\nownership of the facility, and shall provide for consideration of such\nfactors as the age, size, location and condition of the facility.\n (c) For facilities granted operating certificates prior to March\ntenth, nineteen hundred seventy-five, the real property costs shall be\ncomputed upon a cost valuation basis of the facility as determined by\nthe commissioner, who, subject to the approval of the director of the\nbudget, may provide exceptions in circumstances where he finds that\napplication of the regulations would result in excessive reimbursement\nor in severe economic hardship to the facility not caused by\ncircumstances reasonably under the control of the facility.\n (d) For facilities granted operating certificates on or after March\ntenth, nineteen hundred seventy-five, recognition of real property costs\nin such regulations shall be based upon historical costs to the owner of\nthe facility, provided that payment for real property costs shall not be\nin excess of the actual debt service, including principal and interest,\nand payment with respect to owner's equity. For purposes of this\nsubdivision, owner's equity shall be calculated without regard to any\nsurplus created by revaluation of assets and shall not include amounts\nresulting from mortgage amortization where the payment therefor has been\nprovided by real property cost reimbursement.\n (e) All transactions, including leases and mortgages, which are not\nbona fide and reasonable shall be disregarded.\n * NB Expired December 31, 1978\n 2-a. (a) The commissioner, with the approval of the state hospital\nreview and planning council, shall promulgate regulations to be\neffective the first day of January, nineteen hundred seventy-nine,\nrelating the rate of payment for each residential health care facility\nto real property costs.\n (b) Such regulations may differentiate based upon the form of\nownership of the facility, and shall provide for consideration of such\nfactors as the age, siz
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