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. This equipment
will be used in the provision of patient care in each of the three University hospitals.
Since 1997, the hospitals have financed the purchase of this equipment through the
Tax-Exempt Equipment Leasing Program (TELP) administered by the Dormitory Authority
of the State of New York. To access TELP program funds, certain administrative procedures
must be completed before the funds are available for use. These procedures include
the bidding and selection of a vendor, preparation of the bond documents, and obtaining
the approvals of state officials, the State University of New York Board of Trustees,
and the Board of Directors of the Dormitory Authority. The procedure below details
the necessary steps.
The State University of New York’s (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 detailed equipment lists of items
to be funded. Below is the process to be followed for each transaction.
I. Request and Pre-approval
The individual SUNY Hospital’s will develop a listing of equipment that they
are requesting to be funded utilizing the Tax-Exempt Equipment Leasing Program (TELP)
process. Once this list has been approved by Campus/Hospitals management, the
hospital’s financial administration must provide the following information to
System Administration’s Office of Hospital and Clinical Services:
A list of equipment that will be purchased, which must include:
A description of the equipment to be purchased;
An estimated cost of the equipment to be purchased; and
The estimated useful life of the equipment to be purchased.
Categorization of the equipment into one of the following groups:
A detailed explanation for the highest-priced equipment in the request.
An explanation of how all of the equipment to be purchased will support the hospitals
Projections that demonstrate that the hospitals has the ability to make the lease
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, provide the appropriate CON application
number and the approval letter(s).
Once all necessary information is provided, the Office of Hospital and Clinical
Services is responsible for the following:
Review of the documentation for completeness and securing any outstanding CON approvals.
Preparation of the TELP application for submission to the dormitory authority (DASNY).
Execution and filing of a declaration of intent with DASNY to ensure that the hospital
will be able to reimburse itself if operating funds are used to purchase equipment
prior to the loan closing.
Obtain appropriate approvals from the University Board of Trustees, DASNY and the
public authorities control board and including the approvals in the bond documentation.
Preparation of a publication notice for the New York State Contract Reporter and
Request for Proposal to solicit bids from the DASNY list of approved financing vendors.
The selection of the successful vendor will be based entirely on the lowest
Once a vendor has been selected, the SUNY Office of General Counsel will be notified
and the TELP documentation process will begin.
A master lease with attachments will be reviewed by the University, the Office of
the State Comptroller (OSC), the Office of the Attorney General (OAG), DASNY, and
bond counsel. The final closing of this transaction will be completed once all required
approvals are obtained.
After the closing, the funds will be deposited into an appropriate escrow account.
The funds will be drawn down by the hospital after submitting the appropriate documentation
to the escrow agent.
III. Equipment Purchase
For the purchase of equipment utilizing TELP funds, the hospital will follow the
applicable procurement requirements, outlined in relevant New York State laws, and
the University Purchasing
and Contracting Procurement Procedure, Doc. No. 7553.
All existing TELP transactions will be recorded on a centralized database maintained
by the Office of Hospital and Clinical Services. The information to be recorded will
include the following:
Date of closing;
Dollar value of loan; and
The interest rate of the issue.
Note: An amortization schedule should be obtained, but not entered into the database.
The hospital must spend the funds deposited into the escrow account within the 18-month
time period 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 the 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 forms relevant to this procedure.
There are no related procedures relevant to this procedure.
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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
This Procedure was updated in June of 2016.
There are no appendices relevant to this procedure.