SCS/SB 327 - This act is known as the Nonprofit Hospital Sale Act and contains provisions covering those instances when change of ownership results in the acquiring person or persons holding a fifty percent or greater interest in the ownership or control of a hospital.

Any persons acquiring a nonprofit hospital must first notify the Department of Health (DOH) and the Attorney General (AG). Approval must be received from DOH and the AG before the acquisition is completed.

DOH must publish notice of the application in a newspaper of general circulation in the county or counties in which the hospital is located within five working days after receiving the application.

Approval or disapproval of the application must be made by DOH within sixty days after receiving the application. The AG has twenty days to decide whether to consider the application and will have sixty days to approve or disapprove. The AG shall not approve the application unless it is found that the acquisition is in the public interest.

The act establishes considerations for the AG and DOH in their study of the application. These considerations include the legality of the acquisition, due diligence by the hospital, compliance with conflict of interest limits, fair value for assets, and the use of the assets for charitable health care in the community.

If DOH should receive information that the acquiring person is failing to fulfill the commitment to the community, the DOH shall hold a hearing upon ten days notice to the affected parties.

The act limits conflicts of interest between the buyer and the hospital and between the buyer and any nonprofit charitable institution which may receive assets.

Conditions are established, such as failure to get approval under this act or failure to follow conflict of interest rules, for revocation or suspension of a hospital's license.

The act has an emergency clause.

TOM MORTON