Next VAPAP Application Due Date Is Feb. 1st

Nursing homes in severe financial distress have one more chance to apply for funding dedicated for that purpose in the 2022-23 State Budget. The Nursing Home Vital Access Provider Assurance Program (VAPAP) allows homes to apply for financial relief dollars to maintain operations and vital services while they implement longer-term solutions to achieve financial sustainability.

To be eligible to apply for 2023-24 VAPAP funding, a home must have less than 20 days of cash as of Dec. 31, 2022 OR have had a negative operating margin within the last two complete calendar years. The 2022-23 State Budget added nursing homes as eligible applicants and allocated $100 million in VAPAP funding in each of two fiscal years (FYs) (i.e., FY23 and FY24) specifically to nursing homes.

VAPAP provides short-term financial relief dollars to maintain operations and vital services. It is similar but distinct from the Vital Access Provider (VAP) program, which provides temporary (up to three years) operating assistance to financially distressed providers for the purpose of redesigning their health care delivery systems to promote financial sustainability. Funding is provided for operational costs associated with multi-year transformation initiatives that address financial viability, community service needs, quality of care, and health equity. The Department of Health (DOH) recommends that providers who apply for VAPAP funds consider whether their overall plan for long-term sustainability will require funding through the VAP program. Providers interested in filing a VAP application should direct all inquiries to NHVAP@health.ny.gov with "VAP" in the subject line.

The site indicates that applications for VAPAP may include reference to the filing of a subsequent VAP application, but VAPAP funds requested in the application should include only requests for short-term financial assistance. This is inconsistent with the prior guidance that the VAPAP application be used as the initial point of entry for those seeking VAP funding as well. In light of this, those interested in applying for VAP alone may first want to contact DOH at NHVAP@health.ny.gov for guidance.

Although not reflected on the site, the FY24 State Budget permits VAPAP funding to be used for the retirement of long-term debt as well as consultant fees. The application and full information are available on the dedicated DOH site here, and a previously published outline of the program is here.

Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841