Health Care Stabilization Grant Program

The Department of Health announced today that applications are now being accepted for the Health Care Stabilization Grant Program.

Applications will be accepted on a continuous basis for the Health Care Stabilization Program (HCSP). The Department of Health has a $28 million authorization supported by the Health Care Reform Act to provide financial assistance to health care providers and health programs, which are vital community health assets, but whose financial viability and stability is threatened by excessive debt or other adverse factors to the extent that their ability to continue providing health services is endangered. Applicants meeting the eligibility requirements must document financial hardship and present a viable remediation plan demonstrating how State grant funds will provide a critical link to assure the continued viability and stability of the provider/program. Successful applicants must enter into a contract with the Department reflecting their remediation plan. The Department does not anticipate awarding grants prior to August 1, 2005.

Eligibility requirements include the following:

Health Care Providers

  • Hospitals that have applied for a loan from the New York State Health Care Restructuring Pool prior to April 1, 2005 OR other hospitals including those applying for a loan from the Restructuring Pool on or after April 1, 2005 and other providers which exhibit each of the following:
  • A loss from operations for each of the three consecutive preceding years as evidenced by certified financial statements; and
  • A negative fund balance or negative equity position in each of the three preceding years as evidenced by certified financial statements; and
  • A current ratio of less than 1:1 for each of three consecutive preceding years; OR
  • A provider that fulfills an otherwise unmet health care need for the community as determined by the Department; OR
  • The presence of special circumstances, as determined by the Department, the resolution of which may be effectuated in whole or in part by a distribution of funds from this program.

Health Care Programs:

  • Demonstration of management initiatives resulting in the delivery of more efficient health care; and
  • Demonstration of the critical need for the program to be funded by the grant; and
  • Demonstration that the current fiscal viability of the program is in serious jeopardy without the grant funding. This would include but not be limited to, a loss from operations for each of the three consecutive preceding years as evidenced by certified financial statements, a negative fund balance or negative equity position in each of the three preceding years as evidenced by certified financial statements, and a current ratio of less than 1:1 for each of three consecutive preceding years; OR
  • The presence of special circumstances, as determined by the Department, the resolution of which may be effectuated in whole or in part by a distribution of funds from this program.

For an application, go to Grants/Funding Opportunities or contact:

  • Philip N. Mossman
    Bureau of Health Economics
    NYS Department of Health
    Empire State Plaza
    Corning Tower, Room 1110
    Albany, New York 12237
    (518) 473-8822
    pnm01@health.state.ny.us