§ 23-17.14-19 - Limits to acquisitions – Community benefits requirements – Filings prohibited.
SECTION 23-17.14-19
§ 23-17.14-19 Limits to acquisitions– Community benefits requirements – Filings prohibited. – (a) In effectuating the purposes of this chapter to evaluate, review andmonitor the new phenomenon of for-profit corporations gaining an interest inhospitals and the resulting impact on the delivery of healthcare in the state,limitations on for-profit corporations involved in hospital conversions arenecessary.
(b) No for-profit corporation, or its subsidiaries oraffiliates, which applies for and receives approval of a conversion of ahospital in accordance with the provisions of this chapter shall be permittedto apply for approval of a conversion of a second hospital in this state for aperiod of at least three (3) years after the initial conversion is finalizedand implemented. This subsection shall not be deemed to prohibit a for-profitcorporation, together with its subsidiaries and affiliates, from applying foror receiving approval of a conversion of two (2) affiliated hospitals in thisstate provided that: (1) one of the two (2) hospital licenses involved in theconversion was issued prior to July 22, 1997; and (2) this license involves aspecialty rehabilitation hospital that has a maximum of ninety (90) beds. Aconversion undertaken pursuant to this provision shall be considered oneconversion and a for-profit corporation which receives approval for theconversion shall be subject to the three (3) year period between thefinalization and implementation of a first conversion and the application for asecond conversion as set forth in this subsection.
(c) In the event that a for-profit corporation applies tohold, own, or acquire an ownership or controlling interest greater than twentypercent (20%) in more than one hospital one year subsequent to the finalizationand implementation of a prior license, all provisions of this chapter must bemet and, in addition to the review process and criteria set forth in thischapter, the department shall have the sole authority and discretion todetermine:
(1) Whether the for-profit corporation provided communitybenefits as required or promised in connection with obtaining and holding alicense or interest therein during the previous license period;
(2) Whether all terms and conditions of the prior licensehave been met;
(3) Whether all federal, state and local laws, ordinances andregulations have been complied with relative to any prior license;
(4) Whether the for-profit corporation planned, implemented,monitored and reviewed a community benefit program during the prior licenseperiod;
(5) Whether the for-profit corporation maintained, enhancedor disrupted the essential medical services in the affected community or thestate;
(6) Whether the for-profit corporation provided anappropriate amount of charity care necessary to maintain or enhance a safe andaccessible healthcare delivery system in the affected community and the state;and
(7) Whether the for-profit corporation demonstrated asubstantial linkage between the hospital and the affected community byproviding one or more of the following benefits; uncompensated care, charitycare, cash or in kind donations to community programs, education and trainingof professionals in community health issues, relevant research initiatives oressential but unprofitable medical services if needed in the affected community.
(d) The director may hold a public hearing to solicit inputto assess the performance of a for-profit corporation or its affiliates orsubsidiaries in providing community benefits in the affected community or thestate.
(e) The director shall have the sole authority to deny afor-profit corporation, its affiliates or subsidiaries, or successors,permission for one or more than one license and, for good cause, may prohibit afor-profit corporation or its affiliates or subsidiaries from filing anapplication pursuant to this chapter for a period not to exceed ten (10) years.