The Dormitory Authority of the State of New York is collaborating with the New York Department of Health to expedite reimbursements from bond proceeds for the state's healthcare institutions.
DASNY and the DOH announced a new streamlined process Wednesday in an effort to enhance how quickly hospitals, nursing homes and other healthcare agencies receive funds from bonds sold. The new system involves replacing three sets of hard copies the DOH required with one electronic submission and reducing supporting documentation to a five or six page submission. Reviews and approvals will now occur within 10 days as way of expediting reimbursements to clients.
"DASNY and the Department of Health collaborated to speed bond proceed requisitions so New York's health care institutions can focus on delivering high quality care rather than on idle funds," said Gerrard Bushell, DASNY president and CEO, in a statement.
To requisition the funds from these bond sales, health care institutions must demonstrate that they are seeking reimbursement or payment for appropriate capital expenditures. DASNY is the largest issuer of tax-exempt bonds in the nation with an outstanding portfolio of roughly $47.3 billion, which includes more than $5 billion issued on behalf of New York's health care institutions.
"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, president of the Greater New York Hospital Association, in a statement.
The changes announced Wednesday stem from a listening tour conducted by Bushell last year where he heard feedback from issuers about the need for greater speed, certainty and flexibility when accessing the bond market. DASNY also overhauled its borrowing process last December to enable borrowers with at least an A rating the ability to move to the market faster and reduced scenarios where debt-service reserves are required.
