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Statewide Health Care Facility Transformation Grant Q&As Reveal Helpful Details

As previously reported, the Department of Health (DOH) has posted answers to over 300 questions posed by various parties on the Statewide Health Care Facility Transformation Program Phase III (SHCFTP III) funding. The 63-page document is posted here and on the New York State Grants Gateway. It includes responses to several questions posed by LeadingAge NY and some helpful insights for prospective applicants. Below, we highlight questions and answers that LeadingAge NY members may find especially noteworthy:

  • In determining awards, preference will be given to applicants who do not have access to alternative funding other than grants to complete the proposed project(s) [Question (Q) #1]. Matching funds can be used, but this has no bearing on application scoring [Q#3, 220].
  • To distribute funds geographically, DOH will consider the total value of eligible applications from each region relative to the total value of all eligible applications statewide [Q#7].
  • The total required minimum funding for community-based providers is $529,611 because $59.5 million was already awarded to community-based providers under SHCFTP II [Q#11]. The minimum funding for nursing homes totals $23.1 million. Both are minimums, not maximums [Q#12].
  • Of the $208.3 million in total funding, $55.4 million is available for debt retirement and other non-capital purposes [Q#13].
  • There is no minimum and maximum amount of funds that can be applied for per project or per application [Q#18].
  • There is no minimum amount of funds for awards to adult care facilities (ACFs) or assisted living facilities. These provider types are considered community-based providers [Q#28].
  • Certificate of Need (CON) approval is not needed at the time of application submission. An eligible applicant could be eligible for funding for a CON-approved project that is not yet under construction. Only allowable expenses incurred on or after the start date of the grant contract (i.e., estimated Oct. 1, 2022) may be vouchered for reimbursement [Q#33, 34].
  • Applicants must engage the community affected by the proposed project and indicate how the engagement has shaped the project. The applicant must solicit input from impacted community stakeholders. Letters of support are not required or evaluated [Q#39].
  • Publicly operated providers are eligible to apply, as long as they meet the minimum eligibility criteria [Q#59].
  • An eligible applicant must be a legally existing organization and capable of entering into a binding grant contract with DOH, be one of the types of provider organizations listed, be prequalified/exempt in the New York State Grants Gateway, and meet these requirements at the time the application is submitted [Q#63].
  • Nursing homes and ACFs that are part of continuing care retirement communities (CCRCs) are eligible applicants if they meet the eligibility requirements. Being part of a CCRC would not be a basis for exclusion under the qualified license [Q#92].
  • “Market rate” (non-Medicaid) ACFs and assisted living facilities are eligible to receive awards [Q#93].
  • A nursing home can apply for funding on behalf of its adult day health care program, regardless of whether the program is on-site or off-site [Q#96, 98].
  • An application must have one eligible applicant, and the project must primarily benefit the eligible applicant. If multiple applications are filed: (a) separate applications are needed for capital and non-capital projects; (b) a priority must be assigned to each application; (c) if applications are interdependent, the applicant should describe this in each application; (d) within a given application, multiple projects/locations may be included if they are interdependent; and (e) there is no limit on the number of applications an applicant can submit [Q#102, 103].
  • If an eligible applicant has received contingent CON approval but has not yet finalized financing, it could use grant funds to supplement its equity contribution for any expenses incurred after the grant contract date [Q#133].
  • If funds are awarded for a capital project to a not-for-profit nursing home, the related depreciation is ineligible for Medicaid reimbursement [Q#140].
  • Loss of revenues during a temporary phase-down of beds in preparation for a proposed eligible construction project is not an eligible expense [Q#141].
  • Information technology expenses that are capital in nature are eligible expenses for this grant. However, cloud-based and certain software expenses are ineligible because they are considered general operating expenses. Terminals/laptops used to access a cloud-based system would be eligible [Q#151].
  • An application to decertify nursing home beds can be funded if it meets the other criteria [Q#170].
  • If a nursing home applicant proposes to downsize its beds and construct senior housing, the downsizing could be eligible for funding, but an eligible applicant should not apply for projects to benefit affiliates that are ineligible applicant(s) [Q#177].
  • Recipients of Vital Access Provider (VAP) program funding may apply for transformation funding to support eligible projects not supported with VAP funding [Q#260].
  • DOH cannot answer our question as to whether receipt of grant funds would have any bearing on a nursing home’s compliance with the minimum direct resident care spending requirements under Public Health Law § 2828. LeadingAge NY will raise this question in our comments on the proposed regulations [Q#295].

As a reminder, the SHCFTP III solicitation will distribute up to $208.3 million in fund awards to eligible applicants statewide for projects that:

  • create financially sustainable systems of care;
  • preserve or expand essential health care services;
  • modernize obsolete facility physical plants and infrastructure;
  • foster participation in alternative payment arrangements including, but not limited to, contracts with managed care plans and accountable care organizations;
  • for nursing homes, increase the quality of resident care or experience; or
  • improve health information technology infrastructure, including telehealth, to strengthen the acute, post-acute, and long term care continuum.

Applications are due Jan. 12, 2022 by 4 p.m. (for application information, visit the DOH website). Immediate steps are required for not-for-profit applicants, including registration and prequalification in the New York State Grants Gateway. More information about the program is provided in a previous LeadingAge NY Intelligence article available here.

Contact: Darius Kirstein, dkirstein@leadingageny.org, or Meg Everett, meverett@leadingageny.org. Both can be reached at 518-867-8383.