|SB 0579||Subjects nonprofit health entities to additional review by the AG before they can convert to for profit entities|
|LR Number:||0971S.03I||Fiscal Note:||0971-03|
|Committee:||Financial and Governmental Organization, Veterans' Affairs & Elections|
|Last Action:||03/17/03 - Hearing Conducted S Financial & Governmental Org.,||Journal page:|
|Veterans' Affairs & Elections Committee|
|Effective Date:||August 28, 2003|
SB 579 - This act subjects a nonprofit health entity to additional requirements prior to the nonprofit health entity entering into any agreement or transaction to convey its assets to a for-profit corporation or entity.
APPLICATION - Any entity or corporation making such an acquisition in a nonprofit hospital must first apply to the Attorney General (AG) and the Department of Health (in cases involving nonprofit hospitals) or the attorney general and the department of insurance (in cases involving nonprofit HMOs or health services corporations). The application shall include a copy of the acquisition agreement, a financial and economic analysis and any other relevant documents requested by the AG. (Section 355.903)
The Department of Health and Senior Services or the Department of Insurance must publish notice of the application within 10 days after receiving the application in a local newspaper and shall notify individuals who have requested such notice. If the AG decides to review the application, the appropriate department will review the application and forward its recommendation to the AG as to whether the application should be approved.
ATTORNEY GENERAL - The AG has 15 days to decide whether to review the application and if the AG decides to review the application, he or she must approve or disapprove the application within 75 days after deciding to review. The AG shall hold at least one public hearing. The AG shall not approve the acquisition unless the AG finds that the acquisition is in the public interest. The AG must consider a variety of factors outlined in the act to determine whether it is in the public interest. The AG may conditionally approve an application.
APPEAL OF ATTORNEY GENERAL'S DECISION - A person with a legal interest in a nonprofit health entity may obtain judicial review of the AG's decision. Venue for the appeal shall lie in Jefferson City. The AG's decision shall be approved unless there was an abuse of discretion.
CONFLICTS OF INTEREST - The act limits conflicts of interest between the buyer and the nonprofit health entity and between the buyer and any nonprofit charitable institution which may receive assets.
ENFORCEMENT - The Department of Health and Senior Services or the
Department of Insurance, in the appropriate case, may suspend or
revoke a nonprofit health license if this act is violated (e.g.
failure to get approval under this act or failure to follow
conflict of interest rules).