DASNY, State Health Department Expedite New York Hospitals’ Access to Funds

New York State streamlines health care institutions’ bond proceeds requisitions

New York, N.Y. (May 11, 2016) -- DASNY and the New York State Department of Health collaborated to significantly expedite reimbursements from bond proceeds for New York State’s hospitals, nursing homes and other health care institutions, Gerrard P. Bushell, DASNY President and CEO, and Health Commissioner Dr. Howard A. Zucker announced today. Quick access to their funds means these institutions can deliver more for New Yorkers.

“DASNY and the Department of Health collaborated to speed bond proceeds requisitions so New York’s health care institutions can focus on delivering high quality care rather than on idle funds,” Bushell said. “A healthy New York is a competitive New York.”

DASNY – the Dormitory Authority of the State of New York – sells tax-exempt bonds on behalf of these institutions, enabling them to obtain lower interest rates. To requisition the funds from these bond sales, health care institutions must demonstrate that they are seeking reimbursement or payment for appropriate capital expenditures. The streamlined process developed by DASNY and DOH maintains DOH’s important watchdog role of determining that funds are spent on projects that deliver for New York’s health care system.

DASNY, the number one issuer of tax-exempt bonds in the nation, has in its outstanding portfolio more than $5 billion of low-interest bonds issued on behalf of New York’s health care institutions.

“This joint effort by DASNY and the Department of Health will enable health care facilities to focus on delivering the best possible care to their patients and residents, not on getting reimbursements for their capital projects,” Dr. Zucker said.  ”By streamlining the process, we are making it easier for these facilities to do the work they set out to do.”

“HANYS commends the Dormitory Authority and Department of Health for partnering to streamline and expedite the funding our hospitals and health systems need for critical transformative projects,” said Dennis Whalen, Healthcare Association of New York State President.

“New York’s hospitals applaud DASNY and DOH for streamlining the process by which they can access much-needed capital funding,” said Kenneth E. Raske, Greater New York Hospital Association President. “These welcome, sensible changes will make it easier for hospitals to focus on their core mission of providing high-quality care to their patients and communities.”

DASNY and DOH have transformed a once cumbersome and lengthy requisition process into one that is streamlined and efficient:

These changes are the product of a listening tour conducted by Bushell. In December, Bushell’s meetings with DASNY’s clients, partners and staff resulted in an overhaul of DASNY’s financing guidelines and policy that provided education and health care institutions with greater speed, certainty and flexibility when accessing the tax-exempt bond market through DASNY.

By issuing low-interest, tax-exempt bonds, DASNY is providing New York’s health care and higher education institutions savings that enable them to do more for New York’s patients and students. In this role, DASNY serves as an important bridge between the State and the institutions that anchor New York’s communities and economy.