NHCC BOARD OF DIRECTORS UNANIMOUSLY APPROVES CO-APPLICANT AGREEMENT WITH LONG ISLAND FEDERALLY QUALIFIED HEALTH CENTERS BOARD, TO BECOME THE FIRST AND ONLY FQHC ON LONG ISLAND, AN IMPORTANT STEP REQUIRED PRIOR TO SUBMITTING APPLICATION TO FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES TO ACHIEVE FQHC STATUS, FULLFILLING DREAM OF HEALTHCARE ADVOCATES OVER TWO DECADES TO PROVIDE GREATER HEALTH ACCESS FOR 33 MEDICALLY UNDERSERVED COMMUNITIES IN NASSAU COUNTY

July 21, 2009

Contact: Shelley Lotenberg
516-572-6055
Shelley@numc.edu

NHCC BOARD OF DIRECTORS UNANIMOUSLY APPROVES CO-APPLICANT AGREEMENT WITH LONG ISLAND FEDERALLY QUALIFIED HEALTH CENTERS BOARD, TO BECOME THE FIRST AND ONLY FQHC ON LONG ISLAND, AN IMPORTANT STEP REQUIRED PRIOR TO SUBMITTING APPLICATION TO FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES TO ACHIEVE FQHC STATUS, FULLFILLING DREAM OF HEALTHCARE ADVOCATES OVER TWO DECADES TO PROVIDE GREATER HEALTH ACCESS FOR 33 MEDICALLY UNDERSERVED COMMUNITIES IN NASSAU COUNTY

FQHC STATUS WILL HELP ADDRESS HEALTH NEEDS OF VULNERABLE POPULATIONS, PROVIDE INPUT TO LOCAL COMMUNITY BOARD AND PERMIT CO-APPLICANTS TO ENHANCE SERVICES AND HOURS OF OPERATION, PARTICIPATE IN FEDERAL GOVERNMENT MALPRACTICE INSURANCE PROGRAMS, OBTAIN 340B REDUCED PRESCRIPTION PRICING AND RESPOND TO INVITATION TO PARTICIPATE IN FEDERAL PROGRAMS SPECIFIC TO FQHC

East Meadow, NY……..Arthur A. Gianelli, President/CEO of the Nassau Health Care Corporation (NHCC), announced that the NHCC board of directors unanimously approved a co-applicant agreement with the Long Island Federally Qualified Health Centers (LIFQHC) board, to become the first and only FQHC on LI. The NHCC operates health centers in the communities of Hempstead, Elmont, Freeport/Roosevelt and Westbury/New Cassel.

“Signing a co-applicant agreement with the LIFQHC is an important step required prior to submitting an application to the US Department of Health and Human Services (DHHS) to achieve an FQHC look-alike status, fulfilling a dream of health care advocates who have pressed over the last two decades, to provide greater access for the 33 medically underserved communities in Nassau County, help to address the health needs of vulnerable populations, enhance services, hours of operations, obtain 340B reduced prescription pricing, quality improvement through governance by a local community board with consumers having a significant role and participate in the federal malpractice insurance programs,” stated Gianelli.

Section 330 of the Public Health Service Act authorizes grants to the health centers that provide comprehensive, preventive and primary care to federally designated underserved areas. In recognition of the fact that most public entities are not, and legally cannot, be governed by a consumer-directed board, Congress amended the statute in 1978 to authorize the DHHS to expend up to five percent (5%) of the annual Section 330 appropriation, in support of public health centers with governing boards that do not fully exercise all of the required authorities. In order to qualify, the applicant must be a private nonprofit organization or a public entity (i.e., NHCC) and must have a consumer-directed board of directors that meets specific requirements with respect to board member selection and composition and that exercises broad policy and oversight authorities. 
        
As a new member of the NHCC management team, James D. Senterfitt, NHCC vice president of ambulatory services, managed care and network development, who has recently spent time consulting with some of the country’s leading FQHC organizations, remarks: “This exciting development moves NHCC forward in our goal with the community based and service organizations by forging a public/private partnership with the LIFQHC, ensuring that community needs, perspective and input are maintained.”

In order to define and codify each party’s respective roles, responsibilities and authorities in connection with the oversight and operation of the health center, as well as those authorities that will be shared between the two, the public entity and the co-applicant board are required to execute a formal “Co-Applicant Agreement.”  In practice, the public entity which receives the Section 330 grant is expected to have a formal arrangement with a “co-applicant” Board of Directors, which typically is a separately incorporated entity that meets all Section 330 selection and composition requirements and exercises the authorities proscribed by law (with exceptions only for adoption of financial management practices and personnel policies).  Under this “co-applicant” arrangement, the public entity operates the health center on a daily basis and the co-applicant board serves as the health center’s governing Board of Directors for purposes of Section 330-related oversight responsibilities.  Collectively, the two entities are considered the “health center.”

The LIFQHC was required to obtain a Certificate of Need (CON) from the New York State Department of Health, with the LIFQHC application passing unanimously, and without question, through the three reviewing committees of the Hospital Review and Planning Council which issues the CON. Upon actual receipt of the NYS Department of Health’s Certificate of Need and sign off on the co-applicant agreement, NHCC and the LIFQHC will submit an application to the DHHS to become an FQHC look-alike. Lacking any unseen obstacles, the co-applicants could be awarded FQHC Look-alike status in early 2010.

Reflecting the federal requirements for a “Co-Applicant Consumer Board” the LIFQHC has formed an incorporated, non-profit, organization. The board presently consists of 13 members, 7 of whom receive primary care at one of the Community Health Centers, the remaining 6 are leaders of the regional non-profit community. It is expected that the co-applicants could be awarded FQHC Look-alike status in early 2010.