Statewide Healthcare Facility Transformation Funds Available 

Situation Report | October 4, 2021 

Late last week, the State Department of Health (DOH) and the Dormitory Authority of the State of New York (DASNY) announced the availability of funds under the Statewide Health Care Facility Transformation Program III (SHCFTP III). 

The Program provides grants in support of capital projects, debt retirement, working capital or other non-capital projects directly related to a capital project that facilitate health care transformation activities including, but not limited to, merger, consolidation, acquisition or other activities intended to:  

  • 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 residential health care facilities, 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. 

Grants are not available to support general day-to-day operating costs not related to the start-up expenses of the Eligible Project. 

A minimum of $60,000,000 of this total amount must be awarded to community-based providers, a minimum of $45,000,000 must be made to residential health care facilities, and up to $5,000,0000 may be made to Regional Perinatal Centers (RPCs) to establish telehealth applications.  

The Department of Health issued a separate RFA (#18239) for $20,000,000 on August 19, 2019, that was reserved for assisted living programs, and awards were selected and announced on May 13, 2021. As a result, there is $505,000,000 in available funds for SHCFTP III awards. 

Up to $300,000,000 of the $505,000,000 in available funds for SHCFTP III awards could be made available for project applications submitted in response to the Request for Applications #17648 issued by NYSDOH on January 8, 2018 (“2018 RFA”), for the Statewide Health Care Facility Transformation Program II. NYSDOH awarded a total of $296,705,131 and the 2018 RFA, leaving a minimum of $208,294,869 available for awards made in accordance with the SHCFTP III RFA. 

To receive funding or to learn more about the grant, please review the Program’s Eligible Applicant criteria.