N.Y. Comp. Codes R. & Regs. tit. 10, § 408.3 – Administration.

(a) Upon establishment in accordance with the provisions of Part 680 of this Title, a central services facility rural health network shall establish a board of directors responsible for directing the operation of the network in accordance with all applicable regulations and guidelines for networks. The board shall:
1. (1) include equitable representation from the individual governing bodies and medical/professional or administrative staff of participating network providers;
2. (2) include consumer representation consisting of individuals unaffiliated with health care providers other than as purchasers of health care services; and
3. (3) maintain an appropriate balance of provider representatives and consumers residing in the rural area served by the network on the CSFRHN's board of directors.
(b) The CSFRHN board shall adopt written bylaws reflecting its responsibility, accountability and obligations to the community it was established to serve. The bylaws shall include:
1. (1) a description of the organization's service area and office locations;
2. (2) the purposes of the organization;
3. (3) a description of the duties, number and qualifications of directors, the appointment/election process, terms, or the processes for removing and filling vacancies and addressing conflicts of interest, and the compensation of directors;
4. (4) definitions of consumer and provider representatives on the board of directors;
5. (5) a list of officers and their responsibilities; and
6. (6) the mechanisms for adopting, reviewing and revising the bylaws.
(c) The CSFRHN board of directors shall ensure that reports and other documentation required for active supervision by the commissioner, as required in section 408.4 of this Part, shall be submitted in a timely fashion and that any additional requests for information deemed necessary to assess a network's degree of compliance with the intent and purposes of the network development program shall be provided upon request.
(d) CSFRHNs may, pursuant to the provisions of section 2952 of the Public Health Law and guidelines developed by the commissioner, directly receive grants and reimbursement for planning and coordination of services and may also directly receive global budgets, pooling arrangements and/or capitation payments on behalf of participating providers.
(e) A CSFRHN may submit applications for rate enhancements or regulatory waivers to promote the successful implementation and operation of the network pursuant to section 2952 of the Public Health Law, regulations promulgated pursuant thereto and guidelines established by the commissioner.
1. (1) With the prior approval of the Public Health Council, pursuant to Parts 600 and 680 of this Title, central services facility rural health networks may directly operate a hospital.
2. (2) Central services facility rural health networks established to directly operate a hospital shall be subject to the provisions of all applicable Parts of this Title concerning facility operations and reimbursement.
(f) Operation of hospitals.