Hospitals / Clinical Services
Tax-Exempt Equipment Leasing Program (TELP)
September 01, 2004
This procedure item applies to:
Health Science Centers
The State University of New York’s (University) University hospitals must purchase new and/or replacement equipment on an on-going and continuous basis to ensure patient safety and support the needs of the hospitals’ strategic plans. The hospital’s financial administration is required to prepare a detailed equipment list of items to be funded using the TELP Program on Form A (for new equipment) or Form B (for replacement equipment).
C. For all equipment, indicate if a Certificate of Need (CON), administrative review or limited architectural review from the department of health (DOH) is required. For those transactions requiring DOH approval, please provide the appropriate CON application number and the approval letter(s).
E. Once a vendor has been selected, the office of the university counsel will be notified and the TELP documentation process will begin. A master lease with attachments will be reviewed by the University, office of the state comptroller (OSC), attorney general, dormitory authority and bond counsel.
B. The hospitals must spend the funds deposited into the escrow account within the 18-month time limit defined by law to the extent possible. If funds still remain in the escrow account after the 18-month period, the hospital will be contacted and informed that it is required to rebate any interest earnings that exceed interest expense on the funds that remain in the escrow account after the 18-month period. The office of hospital and clinical services will request the appropriate information that allows for the calculation of the amount of interest to be rebated.
There are no related procedures relevant to this procedure.
There is no other information relevant to this procedure.
Chapter 83 of the Laws of 1995 (Health Care Financing Consolidation Act).
To ensure that the State University of New York hospitals provide an environment for the safe and effective care of patients, it is necessary to acquire equipment either to provide new or improved services or to replace major moveable equipment that is either technologically outdated or requires frequent repair. Prior to 1997 the University hospitals accessed capital to acquire moveable equipment through New York State’s Certificate of Participation Program (COPs). However, access to this program ended leaving the University hospitals with no ability to fund equipment acquisition. In 1997, legislation was enacted authorizing the University hospitals to access the Tax-Exempt Equipment Leasing Program (TELP). Each of the University hospitals has successfully utilized this program to finance equipment at very competitive rates.
There are no appendices relevant to this procedure.