HCS/SS/SCS/SB 327 - This act is known as the Nonprofit Hospital Sale Act. It gives the Attorney General (AG) supervision over any transfer of all or a substantial part of the assets of a hospital owned by a nonprofit corporation. The AG's supervision shall include any closing or substantial cut in the services of a hospital which is more than 60 miles from the nonprofit corporation's principal place of business.

APPLICATION - Any person or corporation making such an acquisition in a nonprofit hospital must first apply to the Attorney General (AG) and the Department of Health (DOH). The application shall include a copy of the proposed agreement, a financial and economic analysis and any other documents requested by the AG. The application and related documents shall be considered public records.

HEALTH DEPT. - The DOH must publish notice of the application in a local newspaper within 5 working days. The notice shall direct comments to the AG. If the AG decides to review the application, the DOH shall review the application with respect to: (1) continued access to health care in the community; (2) commitments to care for the disadvantaged and uninsured; and (3) conflict of interest safeguards for health care providers. The DOH shall make a recommendation to the AG within 30 days.

ATTORNEY GENERAL - The AG has fifteen days to decide whether to consider the application and must approve, conditionally approve or disapprove within 75 days after beginning the review. The AG shall hold at least one public hearing. The AG shall not approve the acquisition unless the value of the charitable assets are safeguarded and the proceeds are used for appropriate health care purposes. Various factors are described for consideration by the AG.

The AG's decision shall be approved unless there was an abuse of discretion. If the AG should receive information that the acquiring person is failing to fulfill the commitment to the community, the AG may begin proceedings to revoke the license of the purchaser or to seek other relief.

CONFLICTS 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.

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

JUDICIAL REVIEW - Any person with a legal interest in a hospital being divested or in another contracting hospital may obtain judicial review of the AG's decision. Venue shall be in Cole County. The appellant must show an abuse of discretion to win on appeal.

EMERGENCY CLAUSE - The act has an emergency clause.
MIKE HOEFERKAMP