Capital Workgroup Update

Carl J. Pucci in Finance & Reimbursement

DOH held its Capital Workgroup meeting last Friday.  Among the topics discussed were:

Energy Savings/Capital Options


NYSERDA presented a flex tech program which provides cost-shared objective, customized and site specific engineering studies to assist eligible New York State customers determine energy related feasibility studies.  DOH is accumulating provider energy data which it will share with the associations as next steps are developed.  Attached is the NYSERDA PowerPoint.

2015 Capital Process

DOH outlined the Capital/RHCF timelines for 2015, noting that facilities will have an opportunity to separately review their property schedule (VI) after they’ve submitted their RHCF’s in August.  This will allow members additional time to review their capital data submissions and notify DOH of any discrepancies.  The finalized timetables will be contained in the DAL accompanying the RHCF software release next month, and DOH will be providing additional RHCF software training over the next few months.  NYSHFA will discuss further at its next Payment for Services meeting in June.

Refinancing Incentives/Shared Savings

NYSHFA and the other statewide associations tabulated various recommendations for refinancing incentives and potential uses of shared savings as a result of interest cost reductions.  The recommendations fell into four basic categories:

  • Extending useful life of assets (based on remaining asset use vs. accounting life)
  • Reimbursement of additional closing costs (i.e. mortgage insurance premiums/interest rate locks)
  • Allowing additional borrowing in order to pay down DOH third party liabilities
  • Share a portion of related Medicaid refinancing savings back to providers which also would enhance project debt underwriting by lenders

DOH will examine the proposal to ascertain any statutory or regulatory implications, as well as seek OMIG’s input.  DOH will update the associations on pending refinancing applications, and was supportive of language to enact revised legislation, where appropriate.  The Capital Workgroup will reconvene in a few weeks to discuss these topics, as well as the $1.2B capital fund recently approved via the 1115 Waiver.

  NYSHFA CONTACT: Carl J. Pucci
Director, Finance & Reimbursement
518-462-4800 x36