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NYS Health Care Conversions

• NYS Health Foundation Governance

• NYS Health Foundation Grantmaking

• Future Legislation

New York State Health Foundation Starts Operations

After a four-year delay, state courts have given the green light to the New York State Health Foundation (formerly known as the New York Charitable Asset Foundation) to begin making grants to improve health care for uninsured New Yorkers. The state legislature and Gov. George E. Pataki created the foundation in 2002 with 5% of the proceeds of the conversion of Empire Blue Cross Blue Shield - 95% was used to pay healthcare worker salaries in the NYS budget.  

A court challenge by Consumers Union has been resolved and the new foundation will begin to make grants throughout New York State this fall.  This charitable asset is still viewed as a resource by NYS government.  See the January 2006 press release from Consumers Union.

 

NYS Health Foundation Governance

The foundation has three trustees:  

Deborah Konopko, Director of the U.S. Dept. of Health and Human Services office in New York;

Charles Hayden, former Chancellor of the NYS Board of Regents and Partner at Ziff, Weiermiller, Hayden and Mustico LLP, a personal injury law firm in Elmira;

Steven Price, Sr. Managing Partner, Centerbridge Partners L.P., a NY metropolitan area investment limited partnership with over $2 billion in capital.  

In addition, six advisors without voting power sit on the board.   These advisors include three professionals in the healthcare field (one from Albany, one from Rochester and one from NYC), two lawyers, and an investment manager.

 

NYS Health Foundation Grantmaking

The New York State Health Foundation's assets have grown from an estimated $50-million to more than $250-million during the delay, since the for-profit holding company, Wellchoice, was sold to Wellpoint.   James R. Knickman, the foundation's chief executive, says it has issued a Call for Proposals with a September 15, 2006 deadline.   The foundation will consider funding both nonprofits and for-profits.   For more information, visit the New York State Health Foundation website.

 

 

Future Legislation

In the meantime, a bill has been introduced by Senator James L. Seward (R-Oneonta) that could ameliorate the effects of the 2002 law on future health care conversions.  S00153 sets standards for conversions and requires the transfer of charitable assets resulting from a conversion to a charitable organization.  It also requires that those assets be irrevocably dedicated to health care purposes.  Thes text of the bill is available by searching for S00152 on the Senate site.  The bill is currently in the Senate Insurance Committee, chaired by Sen. Seward.