SB 327 - This act contains review and approval requirements for any acquisition of 20% or more in a nonprofit hospital.

NOTIFICATION - Any person acquiring a nonprofit hospital must first notify the Dept. of Health (DOH) and the Attorney General (AG). Approval must be received before completing acquisition.

REVIEW - The public must be notified of any application within 5 days. The AG has 20 days to decide whether to consider an application. The time limit for disapproval is 60 days. A public hearing is required within 30 days.

The act sets considerations for the AG and the DOH. These considerations include the legality of 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.

FOLLOW-UP - The DOH shall hold a hearing if subsequent events show the law is being violated.

CONFLICT OF INTEREST - 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.

LICENSE REVOCATION - Conditions are set for removal of a hospital's license, such as failing to get approval under this act or failure to follow conflict of interest rules.

COMMON LAW - The common law powers of the AG are not limited.

MIKE HOEFERKAMP