Section 7. Definitions

A. "Act" means the Primary Care Capital Funding Act (Sections 24-1C-1 to 24-1C-10 NMSA 1978). B. "Agreement" means the document or documents signed by the Board and the Eligible Entity which specify the terms and conditions of obtaining Financial Assistance under the Program; C. "Applicant" means an Eligible Entity which has filed a request for Financial Assistance with the Department and the Authority; D. "Application" means a written document filed with the Department and the Authority by an Applicant for the purpose of obtaining Financial Assistance; an application may include a form prescribed by the Department and the Authority, written responses to requests for information by the Department and the Authority, or other format as determined by the Department and the Authority; E. "Authority" means the New Mexico Finance Authority; F. "Authorized Representative" means one or more individuals authorized by the governing body of an Eligible Entity to act on behalf of the Eligible Entity in connection with its application. An Authorized Representative may act on behalf of the Eligible Entity to the extent provided by law; G. "Board" means the New Mexico Finance Authority Board; H. "Capital Project" means repair, renovation or construction of a facility, purchase of land, or purchase of capital equipment; I. "Contract for Services" means an agreement with an Eligible Entity to provide free or reduced fee Primary Care services for Sick and Medically Indigent persons as reasonably adequate legal consideration for money from the Fund to the Eligible Entity so it may acquire or construct a Capital Project to provide the services; J. "Department" means the New Mexico Department of Health; K. "Eligible Entity" means a community-based nonprofit Primary Care clinic or Hospice that operates in a rural or other Health Care Underserved Area of the State and that has assets totaling less than ten million dollars ($10,000,000.00) and is a 501 (c)(3) nonprofit corporation for federal income tax purposes; L t to provide the services; J. "Department" means the New Mexico Department of Health; K. "Eligible Entity" means a community-based nonprofit Primary Care clinic or Hospice that operates in a rural or other Health Care Underserved Area of the State and that has assets totaling less than ten million dollars ($10,000,000.00) and is a 501 (c)(3) nonprofit corporation for federal income tax purposes; L. "Finance Committee" means a six-member body, three members appointed by the chairman of the Board from the members of the Board and/or the Authority staff and three members appointed by the Department; 7.29.4 NMAC -1- M. "Financial Assistance" means loans, contracts for services, and any other type of assistance authorized by the Act, or a combination thereof, provided by the Authority to an Eligible Entity under the Program for the funding of a Capital Project; N. "Fund" means the Primary Care Capital Fund; O. "Health Care Underserved Area" (HCUA) means geographic areas, special populations or institutions designated by the Department as having identifiable need for health services. These designations may recognize need for either general or special health care services. State HCUA designations may give consideration to federally designated Health Professional Shortage Areas (HPSA) and Medically Underserved Areas (MUA). P. "Hospice" means an organization, company, or any other entity which provides a Program of palliative and supportive services which provides physical, psychological, social and spiritual care for terminally ill patients and their family members in a Licensed Facility equipped and staffed to provide services on a twenty-four (24) hour basis. Q. "Licensing Authority" means the Department. R. "Licensed Facility" means facility licensed by the Department and complies with all applicable state and federal licensing requirements. S. “Mid-level Provider” means licensed or certified non-physician Primary Care provider including physician assistant, nurse practitioner or nurse midwife. T d to provide services on a twenty-four (24) hour basis. Q. "Licensing Authority" means the Department. R. "Licensed Facility" means facility licensed by the Department and complies with all applicable state and federal licensing requirements. S. “Mid-level Provider” means licensed or certified non-physician Primary Care provider including physician assistant, nurse practitioner or nurse midwife. T. "Primary Care" means the first level of basic or general health care for an individual's health needs, including diagnostic and treatment services; "Primary Care" includes the provision of mental health services if those services are integrated into the Eligible Entity's service array; U. "Program" means the Primary Care Capital Project Finance Program authorized by the Act; V. "Sick and Medically Indigent" means both those individuals below the federal poverty level not covered by private third party health care insurance and those individuals between 100% and 200% of federal poverty levels who are not covered by any private third party health insurance. Medically indigent individuals are usually expected to pay for some portion of the cost of their health care based upon the level of their income. [7.29.4.7 NMAC – Rp 7 NMAC 29.4.7, 12/28/01] 7.29.4.8 APPLICATION PROCEDURES FOR FINANCIAL ASSISTANCE A. Contingent upon a sufficient balance in the Fund, the Department and the Authority may establish one or more application cycles in any state fiscal year. At the beginning of any application cycle, the Department and the Authority will notify eligible entities that applications are being accepted for financing of Capital Projects. B. The Department and the Authority will provide forms and/or guidelines for application to apply for Program funds. The application shall be signed by the Authorized Representative and submitted to the Department al year. At the beginning of any application cycle, the Department and the Authority will notify eligible entities that applications are being accepted for financing of Capital Projects. B. The Department and the Authority will provide forms and/or guidelines for application to apply for Program funds. The application shall be signed by the Authorized Representative and submitted to the Department. The application shall include the following: (1) type of Financial Assistance being sought and itemization of the proposed use or uses of the Financial Assistance; (2) detailed description of the circumstances which justify the need for the Capital Project, including: (a) eligibility of application entity (b) programmatic appropriateness (c) facility need as covered in Section 9.2.a. (d) needs of community as covered in Section 9.2 b. (3) detailed description of the Capital Project to be financed. Information on each Capital Project must include: (a) description of the scope of work of the Capital Project; (b) the estimated cost of the Capital Project; (c) the target date for the initiation of the Capital Project and the estimated time to completion; (d) the estimated useful life of the Capital Project and selected components (furnishings, equipment, etc.), as detailed on the application form; (e) proof of applicable licenses and certifications; and (f) other data as requested by the Department or the Authority. (4) a copy of the Applicant's articles of incorporation and by-laws; (5) a copy of the Applicant's Internal Revenue Service tax exempt determination letter; 7.29.4 NMAC -2- (6) a letter certifying that the Capital Project was duly authorized and approved by the Applicant's governing body; (7) identification of the source of funds for repayment of the Financial Assistance and the source of funds to operate and maintain the Capital Project over its useful life; (8) the Applicant's audited financial reports for the most recent three years; (9) the requested loan payback period; (10) any existing title insurance po ect was duly authorized and approved by the Applicant's governing body; (7) identification of the source of funds for repayment of the Financial Assistance and the source of funds to operate and maintain the Capital Project over its useful life; (8) the Applicant's audited financial reports for the most recent three years; (9) the requested loan payback period; (10) any existing title insurance policies, title abstracts or searches of the real property owned by the Applicant; (11) information on the current and proposed services of the Applicant to the sick and medically indigent; (12) additional information as requested by the Department, Board or Finance Committee. C. The Department shall conduct a review of the application for eligibility, completeness and programmatic priority. D. The Department will refer the applications to the Finance Committee. The Finance Committee will consider the Capital Project and may confer with outside parties as necessary to obtain more information on the financial feasibility, Capital Project feasibility, and readiness to proceed. The Finance Committee will make a written recommendation to the Board. Such recommendation will include approval or disapproval of specific Capital Projects and the estimated costs thereof. The Finance Committee may also, at its discretion, recommend interest rates, loan periods, loan amounts and amounts of contracts for services. E. Once a recommendation has been made on the application by the Finance Committee, the Board will act on the application no later than the next regular Board meeting at which such item may be properly considered, or 45 days after Finance Committee action, whichever comes first. The Board may approve all or part of the application as recommended by the Finance Committee. Board approval may specify, at the Board's discretion, terms and conditions of the Financial Assistance as necessary to ensure repayment, including but not limited to, maximum loan term and maximum annual payments. F be properly considered, or 45 days after Finance Committee action, whichever comes first. The Board may approve all or part of the application as recommended by the Finance Committee. Board approval may specify, at the Board's discretion, terms and conditions of the Financial Assistance as necessary to ensure repayment, including but not limited to, maximum loan term and maximum annual payments. F. The Board will notify the Applicant of the approval or disapproval of its application by telephone and will mail written notification by certified mail within seven working days of Board action. Written notification of the approval will be accompanied by an Agreement to be signed by an Authorized Representative of the Applicant and returned to the Board by certified mail. G. All communications regarding an Eligible Entity's original application shall be directed to the Department. [7.29.4.8 NMAC – Rp 7 NMAC 29.4.8, 12/28/01] 7.29.4.9 EVALUATION OF APPLICANT AND CAPITAL PROJECT The Department and Authority will complete an evaluation of the Applicant and proposed Capital Project. Such evaluation will include, to the extent applicable, an evaluation of Capital Project feasibility, administrative capacity, and financial position. A. An Eligible Entity: (1) Must be a community-based nonprofit Primary Care clinic or Hospice that operates in a rural or other Health Care Underserved Area of the State and that has assets totaling less than ten million dollars ($10,000,000.00) and is a 501 (c)(3) nonprofit corporation for federal income tax purposes. (2) Have a governing board whose membership is generally representative of the health care underserved area served. An eligible organization which is multipurpose or provides services in more than one Health Care Underserved Area must have a local or regional Primary Care or Hospice advisory board whose membership is generally representative of the Health Care Underserved Area being served rposes. (2) Have a governing board whose membership is generally representative of the health care underserved area served. An eligible organization which is multipurpose or provides services in more than one Health Care Underserved Area must have a local or regional Primary Care or Hospice advisory board whose membership is generally representative of the Health Care Underserved Area being served. (3) If a Primary Care clinic, must sustain or provide a minimum level of primary health care services through the services of a physician or midlevel provider. Services may additionally include, but not be limited to, medical support, diagnostic and treatment services, pharmacy, laboratory, radiology, preventive health services, emergency medical services, mental health, patient follow-up, and/or dental and dental support services. Such services shall be provided in coordination with primary medical care services. (4) If a Hospice, comply with all New Mexico Requirements for Inhome and Inpatient Hospice Care as specified in 7 NMAC 12.2 or such other regulations as may be adopted by the Department. (5) Have policies and procedures which assure that no person will be denied services because of inability to pay. These policies and procedures must address the medically indigent persons below poverty not covered by third party payors and those between 100% and 200% of poverty without third party coverage. The 7.29.4 NMAC -3- Eligible Entity must be able to demonstrate either the successful impact of these policies and procedures, or have a practical plan for their implementation. (6) Have billing policies and procedures which maximize patient collections except where Federal regulations or contractual obligations prohibit the use of such measures. The Eligible Entity must be able to demonstrate either the successful impact of these policies and procedures, or have a practical plan for their implementation s and procedures, or have a practical plan for their implementation. (6) Have billing policies and procedures which maximize patient collections except where Federal regulations or contractual obligations prohibit the use of such measures. The Eligible Entity must be able to demonstrate either the successful impact of these policies and procedures, or have a practical plan for their implementation. (7) Provide a written assurance, signed by an attorney, that it has proper title, easements, leases, and right of ways to the property upon which any facility proposed for funding is constructed or improved. (8) Comply with all applicable federal, state, and local laws and regulations. (9) Meet other requirements as determined by the Department. B. Need. The Department will determine priorities for community need and facility/equipment need. C. Capital Project Feasibility. The Finance Committee will analyze each Capital Project to determine whether the Capital Project is feasible. Extension of Financial Assistance by the Authority does not constitute a warranty or other guarantee as to the feasibility of the Capital Project. D. Administrative Capacity. The Finance Committee will evaluate the extent to which the Applicant has sufficient administrative capacity. E. Financial Position. Financial performance is a key factor in the evaluation of an Applicant. The Applicant must demonstrate that the excess of public support and revenues over expenses for the most recent fiscal year or the projected amount for the fiscal year after the Capital Project's completion (after adding back annual depreciation and interest) provides sufficient coverage of the previous year's annual debt service and sufficient coverage of projected maximum annual debt service after accounting for the Authority's loan. F. Service Capacity pport and revenues over expenses for the most recent fiscal year or the projected amount for the fiscal year after the Capital Project's completion (after adding back annual depreciation and interest) provides sufficient coverage of the previous year's annual debt service and sufficient coverage of projected maximum annual debt service after accounting for the Authority's loan. F. Service Capacity. The Department will establish priorities for Financial Assistance, determine the appropriateness of the Capital Project, evaluate the capability of an Applicant to maintain Primary Care or Hospice services, and determine that Capital Projects comply with all state and federal licensing requirements. The Department will determine, for applications for contracts for service, the adequacy of proposed plans to provide Primary Care services in lieu of loan repayment. G. Geographic Location. The Department will determine whether there is fair geographic distribution of Financial Assistance.