Bill Text: MS SB2747 | 2013 | Regular Session | Introduced
Bill Title: Sale or lease of community hospitals; provide procedures and effect of sale or lease.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-13 - Died In Committee [SB2747 Detail]
Download: Mississippi-2013-SB2747-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Public Health and Welfare
By: Senator(s) Burton
Senate Bill 2747
AN ACT TO AMEND SECTION 41-13-35, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD OF TRUSTEES OF ANY COMMUNITY HOSPITAL OR ITS OWNER TO SELL OR LEASE THE HOSPITAL TO A FOR-PROFIT OR NOT-FOR-PROFIT LEGAL ENTITY FOR THE PURPOSE OF OPERATING THE HOSPITAL AND ITS FACILITIES; TO PROVIDE FOR THE TERMS OF THE SALE OR LEASE; TO PROVIDE STANDARDS FOR EVALUATION OF THE FACILITY; TO DEFINE THE LEGAL STATUS OF THE PURCHASER OR LESSEE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 41-13-35, Mississippi Code of 1972, is amended as follows:
41-13-35. (1) The board of trustees of any community hospital shall have full authority to appoint an administrator, who shall not be a member of the board of trustees, and to delegate reasonable authority to such administrator for the operation and maintenance of such hospital and all property and facilities otherwise appertaining thereto.
(2) The board of trustees shall have full authority to select from its members, officers and committees and, by resolution or through the board bylaws, to delegate to such officers and committees reasonable authority to carry out and enforce the powers and duties of the board of trustees during the interim periods between regular meetings of the board of trustees; provided, however, that any such action taken by an officer or committee shall be subject to review by the board, and actions may be withdrawn or nullified at the next subsequent meeting of the board of trustees if the action is in excess of delegated authority.
(3) The board of trustees shall be responsible for governing the community hospital under its control and shall make and enforce staff and hospital bylaws and/or rules and regulations necessary for the administration, government, maintenance and/or expansion of such hospitals. The board of trustees shall keep minutes of its official business and shall comply with Section 41-9-68.
(4) The decisions of said board of trustees of the community hospital shall be valid and binding unless expressly prohibited by applicable statutory or constitutional provisions.
(5) The power of the board of trustees shall specifically include, but not be limited to, the following authority:
(a) To deposit and invest funds of the community hospital in accordance with Section 27-105-365;
(b) To establish such equitable wage and salary programs and other employment benefits as may be deemed expedient or proper, and in so doing, to expend reasonable funds for such employee salary and benefits. Allowable employee programs shall specifically include, but not be limited to, medical benefit, life, accidental death and dismemberment, disability, retirement and other employee coverage plans. The hospital may offer and fund such programs directly or by contract with any third party and shall be authorized to take all actions necessary to implement, administer and operate such plans, including payroll deductions for such plans;
(c) To authorize employees to attend and to pay actual expenses incurred by employees while engaged in hospital business or in attending recognized educational or professional meetings;
(d) To enter into loan or scholarship agreements with employees or students to provide educational assistance where such student or employee agrees to work for a stipulated period of time for the hospital;
(e) To devise and implement employee incentive programs;
(f) To recruit and financially assist physicians and other health care practitioners in establishing, or relocating practices within the service area of the community hospital including, without limitation, direct and indirect financial assistance, loan agreements, agreements guaranteeing minimum incomes for a stipulated period from opening of the practice and providing free office space or reduced rental rates for office space where such recruitment would directly benefit the community hospital and/or the health and welfare of the citizens of the service area;
(g) To contract by way of lease, lease-purchase or otherwise, with any agency, department or other office of government or any individual, partnership, corporation, owner, other board of trustees, or other health care facility, for the providing of property, equipment or services by or to the community hospital or other entity or regarding any facet of the construction, management, funding or operation of the community hospital or any division or department thereof, or any related activity, including, without limitation, shared management expertise or employee insurance and retirement programs, and to terminate said contracts when deemed in the best interests of the community hospital;
(h) To file suit on behalf of the community hospital to enforce any right or claims accruing to the hospital and to defend and/or settle claims against the community hospital and/or its board of trustees;
(i) To sell or otherwise dispose of any chattel property of the community hospital by any method deemed appropriate by the board where such disposition is consistent with the hospital purposes or where such property is deemed by the board to be surplus or otherwise unneeded;
(j) To let contracts for the construction, remodeling, expansion or acquisition, by lease or purchase, of hospital or health care facilities, including real property, within the service area for community hospital purposes where such may be done with operational funds without encumbrancing the general funds of the county or municipality, provided that any contract for the purchase of real property must be ratified by the owner;
(k) To borrow money and enter other financing arrangements for community hospital and related purposes and to grant security interests in hospital equipment and other hospital assets and to pledge a percentage of hospital revenues as security for such financings where needed; provided that the owner shall specify by resolution the maximum borrowing authority and maximum percent of revenue which may be pledged by the board of trustees during any given fiscal year;
(l) To expend hospital funds for public relations or advertising programs;
(m) To offer the following inpatient and outpatient services, after complying with applicable health planning, licensure statutes and regulations, whether or not heretofore offered by such hospital or other similar hospitals in this state and whether or not heretofore authorized to be offered, long-term care, extended care, home care, after-hours clinic services, ambulatory surgical clinic services, preventative health care services including wellness services, health education, rehabilitation and diagnostic and treatment services; to promote, develop, operate and maintain a center providing care or residential facilities for the aged, convalescent or handicapped; and to promote, develop and institute any other services having an appropriate place in the operation of a hospital offering complete community health care;
(n) To promote, develop, acquire, operate and maintain on a nonprofit basis, or on a profit basis if the community hospital's share of profits is used solely for community hospital and related purposes in accordance with this chapter, either separately or jointly with one or more other hospitals or health-related organizations, facilities and equipment for providing goods, services and programs for hospitals, other health care providers, and other persons or entities in need of such goods, services and programs and, in doing so, to provide for contracts of employment or contracts for services and ownership of property on terms that will protect the public interest;
(o) To establish and operate medical offices, child care centers, wellness or fitness centers and other facilities and programs which the board determines are appropriate in the operation of a community hospital for the benefit of its employees, personnel and/or medical staff which shall be operated as an integral part of the hospital and which may, in the direction of the board of trustees, be offered to the general public. If such programs are not established in existing facilities or constructed on real estate previously acquired by the owners, the board of trustees shall also have authority to acquire, by lease or purchase, such facilities and real property within the service area, whether or not adjacent to existing facilities, provided that any contract for the purchase of real property shall be ratified by the owner. The trustees shall lease any such medical offices to members of the medical staff at rates deemed appropriate and may, in its discretion, establish rates to be paid for the use of other facilities or programs by its employees or personnel or members of the public whom the trustees may determine may properly use such other facilities or programs;
(p) Provide, at its discretion, ambulance service and/or to contract with any third party, public or private, for the providing of such service;
(q) Establish a fair and equitable system for the billing of patients for care or users of services received through the community hospital, which in the exercise of the board of trustees' prudent fiscal discretion, may allow for rates to be classified according to the potential usage by an identified group or groups of patients of the community hospital's services and may allow for standard discounts where the discount is designed to reduce the operating costs or increase the revenues of the community hospital. Such billing system may also allow for the payment of charges by means of a credit card or similar device and allow for payment of administrative fees as may be regularly imposed by a banking institution or other credit service organization for the use of such cards;
(r) To establish as an organizational part of the hospital or to aid in establishing as a separate entity from the hospital, hospital auxiliaries designed to aid the hospital, its patients, and/or families and visitors of patients, and when the auxiliary is established as a separate entity from the hospital, the board of trustees may cooperate with the auxiliary in its operations as the board of trustees deems appropriate; and
(s) To make any agreements or contracts with the federal government or any agency thereof, the State of Mississippi or any agency thereof, and any county, city, town, supervisors district or election district within this state, jointly or separately, for the maintenance of charity facilities.
(6) No board of trustees of any community hospital may accept any grant of money or other thing of value from any not-for-profit or for-profit organization established for the purpose of supporting health care in the area served by the facility unless two-thirds (2/3) of the trustees vote to accept the grant.
(7) No board of trustees, individual trustee or any other person who is an agent or servant of the trustees of any community hospital shall have any personal financial interest in any not-for-profit or for-profit organization which, regardless of its stated purpose of incorporation, provides assistance in the form of grants of money or property to community hospitals or provides services to community hospitals in the form of performance of functions normally associated with the operations of a hospital.
(8) Sale or lease of community hospital; effect of sale. (a) In the interest of providing quality health care services to the citizens and residents of this state, and notwithstanding any other provision of general law, a community hospital organized and existing under the laws of this state, acting by and through its board of trustees or owner may sell or lease the hospital to a for-profit or not-for-profit Mississippi entity, and enter into leases or other contracts with a for-profit or not-for-profit Mississippi entity for the purpose of operating the hospital and its facilities. The term of such lease, contract or agreement and the conditions, covenants and agreements to be contained therein shall be determined by the board of trustees or owner of the hospital. The board of the hospital must find that the sale, lease or contract is in the best interest of the affected community and must state the basis of that finding.
(b) A lease, contract or agreement made pursuant hereto shall:
(i) Provide that the articles of incorporation of the for-profit or not-for-profit corporation be subject to the approval of the board of directors or board of trustees of the hospital;
(ii) Require that any not-for-profit corporation become qualified under Section 501(c)(3) of the United States Internal Revenue Code;
(iii) Provide for the orderly transition of the operation and management of the facilities;
(iv) Provide for the return of the facility to the county, municipality or district upon the termination of the lease, contract or agreement; and
(v) Provide for the continued treatment of indigent patients pursuant to state and federal law.
(c) Any sale, lease or contract entered into pursuant to this subsection before the effective date of this act must have complied with the requirements of paragraph (b) of this subsection in effect at the time of the sale, lease or contract. It is the intent of the Legislature that this subsection not impose any further requirements with respect to the formation of any for-profit or not-for-profit Mississippi entity, the composition of the board of directors of any Mississippi entity, or the manner in which control of the hospital is transferred to the Mississippi entity.
(d) As used in this subsection, the term:
(i) "Affected community" means those persons residing within the geographic boundaries defined by the charter of the community hospital, or if the boundaries are not specifically defined by charter, by the geographic area from which seventy-five percent (75%) of the community hospital's inpatient admissions are derived.
(ii) "Fair market value" means the price that a seller or lessor is willing to accept and a buyer or lessee is willing to pay on the open market and in an arms-length transaction, or what an independent expert in hospital valuation determines the fair market value to be.
(iii) "Interested party" includes a person submitting a proposal for sale or lease of the community hospital, as well as the board.
(e) The board of trustees or owner of a community hospital shall commence an evaluation of the possible benefits to an affected community from the sale or lease of hospital facilities owned by the board to a not-for-profit or for-profit entity. In the course of evaluating the benefits of the sale or lease, the board shall:
(i) Conduct a public hearing to provide interested persons the opportunity to be heard on the matter.
(ii) Publish notice of the public hearing in one or more newspapers of general circulation in the county in which the majority of the physical assets of the hospital or health care system are located at least fifteen (15) days before the hearing is scheduled to occur.
(iii) Contract with a certified public accounting firm or other firm that has substantial expertise in the valuation of hospitals to render an independent valuation of the hospital's fair market value.
(iv) Consider an objective operating comparison between a hospital or health care system operated by the district, county or municipality and other similarly situated hospitals, both not-for-profit and for-profit, which have a similar service mix, in order to determine whether there is a difference in the cost of operation using publicly available data provided by the Agency for Health Care Administration and the quality metrics identified by the Centers for Medicare and Medicaid Services Core Measures. The comparison must determine whether it is more beneficial to taxpayers and the affected community for the hospital to be operated by a governmental entity, or whether the hospital can be operated by a not-for-profit or for-profit entity with similar or better cost-efficiencies or measurable outcomes identified by the Centers for Medicare and Medicaid Services Core Measures. The comparison must also determine whether there is a net benefit to the community to operate the hospital as a not-for-profit or for-profit entity and use the proceeds of the sale or lease for the purposes described in this subsection.
(v) Make publicly available all documents considered by the board in the course of such evaluation.
1. Within one hundred sixty (160) days after the initiation of the process established in this paragraph, the governing board shall publish notice of the board's findings in one or more newspapers of general circulation in the county in which the majority of the physical assets of the hospital are located.
2. This evaluation is not required if a district, county or municipal hospital has issued a public request for proposals for the sale or lease of a hospital for the purpose of receiving proposals from qualified purchasers or lessees, either not-for-profit or for-profit.
(f) If, upon completion of the evaluation of the benefits of the sale or lease, the board of trustees or owner of the community hospital determines that it is no longer in the best interest of the affected community to own or operate a hospital or health care system and elects to consider a sale or lease of the hospital or health care system to a third party, the board must first determine whether there are any qualified purchasers or lessees. In the process of evaluating any qualified purchaser or lessee, the board shall:
(i) Publicly advertise the meeting at which the proposed sale or lease will be considered by the board of trustees or owner of the community hospital; or
(ii) Publicly advertise the offer to accept proposals and receive proposals from all qualified purchasers and lessees.
Any sale or lease must be for fair market value, or, if not for fair market value, the lease must be in the best interest of the affected community. A sale or lease must comply with all applicable state and federal antitrust laws.
(g) A determination by the board of trustees or owner of the community hospital to accept a proposal for sale or lease shall be made after consideration of all proposals received and negotiations with a qualified purchaser or lessee. The board's determination must include, in writing, detailed findings of all reasons for accepting the proposal.
(i) The board's acceptance of a proposal for sale or lease must include a description of how the sale or lease satisfies each of the following requirements:
1. The sale or lease represents fair market value, as determined by a certified public accounting firm or other qualified firm pursuant to paragraph (e) of this subsection. If leased at less than fair market value, the board of trustees or owner of the community hospital shall provide a detailed explanation of how the best interest of the affected community are served by the acceptance of less than fair market value for the lease of the hospital.
2. Acceptance of the proposal will result in a reduction or elimination of ad valorem or other taxes for taxpayers in the district, if applicable.
3. The proposal includes an enforceable commitment that programs and services and quality health care will continue to be provided to all residents of the affected community, particularly to the indigent, the uninsured and the underinsured.
4. Disclosure has been made of all conflicts of interest, including, but not limited to, whether the sale or lease of the hospital or health care system would result in a special private gain or loss to members of the board of trustees or owner of the community hospital or key management employees or members of the medical staff of the community hospital, or if the board of trustees or owner of the community hospital members will be serving on the board of any successor private corporation. Conflicts of interest, if any, with respect to experts retained by the board of trustees or owner of the community hospital shall also be disclosed.
5. Disclosure has been made by the seller or lessor of all contracts with physicians or other entities providing health care services through a contract with the seller or lessor, including all agreements or contracts that would be void or voidable upon the consummation of the sale or lease.
6. The proposal is in compliance with paragraphs (h) and (i) of this subsection.
(ii) The findings must be accompanied by all information and documents relevant to the board's determination, including, but not limited to:
1. The names and addresses of all parties to the transaction.
2. The location of the hospital or health care system and all related facilities.
3. A description of the terms of all proposed agreements.
4. A copy of the proposed sale or lease agreement and any related agreements, including, but not limited to, leases, management contracts, service contracts and memoranda of understanding.
5. The estimated total value associated with the proposed agreement and the proposed acquisition price.
6. Any valuations of the hospital's or health care system's assets prepared during the three (3) years immediately preceding the proposed transaction date.
7. The fair market value analysis required by paragraph (e)(iii) of this subsection, or any other valuation prepared at the request of the board, owner of the hospital or health care system, or managing entity of the hospital or health care system.
8. Copies of all other proposals and bids that the board may have received or considered in compliance with paragraph (e) of this subsection.
(h) Within one hundred twenty (120) days before the anticipated closing date of the proposed transaction, the board of trustees or owner of the community hospital shall make publicly available all findings and documents required under paragraph (g) of this subsection and publish a notice of the proposed transaction in one or more newspapers of general circulation in the county in which the majority of the physical assets of the hospital or health care system are located. The notice must include the names of the parties involved and the means by which a person may submit written comments about the proposed transaction to the board of trustees or owner of the community hospital and obtain copies of the findings and documents required under paragraph (g) of this subsection.
(i) Within twenty (20) days after the date of publication of the public notice, any person may submit to the board of trustees or owner of the community hospital written comments regarding the proposed transaction.
(j) The sale or lease of the hospital or health care system is subject to approval by the State Department of Health as licensing agency, law, approval of the sale or lease shall exclusively be by majority vote of the registered voters in the community hospital in which the hospital or health care system is located.
(i) The board of trustees or owner of the community hospital shall file a petition with the State Department of Health seeking approval of the proposed transaction at least thirty (30) days after publication of the notice of the proposed transaction.
(ii) The petition for approval filed by the board must include all findings and documents required under paragraph (g) of this subsection and certification by the board of compliance with all requirements of this subsection. The chair of the board must certify under oath and subject to the penalty of perjury on a form accompanying the petition that the contents of the petition and representations therein are true and correct.
(k) Within thirty (30) days after receiving the petition, the State Department of Health shall issue a final order approving or denying the proposed transaction based solely upon consideration of whether the procedures contained within this subsection have been followed by the board of trustees or owner of a community hospital. The order shall require the board to accept or reject the proposal for the sale or lease of the community hospital based upon a determination that:
(i) The proposed transaction is permitted by law.
(ii) The proposed transaction does not unreasonably exclude a potential purchaser or lessee on the basis of being a for-profit or a not-for-profit Mississippi corporation or other form of business organization, such as a partnership or limited liability company.
(iii) The board of trustees or owner of the community hospital publicly advertised the meeting at which the proposed transaction was considered by the board.
(iv) The board of trustees or owner of the community hospital publicly advertised the offer to accept proposals.
(v) Any conflict of interest was disclosed, including, but not limited to, how the proposed transaction could result in a special private gain or loss to members of the board of trustees or the owner of the community hospital or key management employees of the community hospital, or if board members will be serving on the board of any successor private corporation. Conflicts of interest, if any, with respect to experts retained by the board shall also be disclosed.
(vi) The seller or lessor documented that it will receive fair market value for the sale or lease of the assets as indicated in paragraph (e)(iii) of this subsection or, if leased at less than fair market value, the board provided a detailed explanation of how the best interest of the affected community are served by the acceptance of less than fair market value for the lease of the hospital.
(vii) The acquiring entity has made an enforceable commitment that programs and services and quality health care will continue to be provided to all residents of the affected community, particularly to the indigent, the uninsured and the underinsured.
(viii) The board disclosed whether the sale or lease will result in a reduction or elimination of ad valorem or other taxes used to support the hospital.
(l) Any interested party to the action has the right to seek judicial review of the decision in the appellate district where the hospital is located.
(i) All proceedings shall be instituted by filing a notice of appeal within thirty (30) days after the date of the final order.
(ii) In such judicial review, the court shall affirm the decision of the State Department of Health, unless the decision by the State Department of Health is shown to be clearly erroneous.
(m) All costs shall be paid by the board of trustees or owner of the community hospital, unless an interested party contests the action, in which case the court may assign costs equitably to the parties.
(n) If any provision of paragraph (e) of this subsection is not followed, the contract for sale or lease is voidable by any party to the contract.
(o) If a community hospital is sold, any and all special district tax authority associated with the hospital subject to the sale shall cease on the effective date of the closing date of the sale.
(p) If a community hospital is sold or leased, the board shall:
(i) Deposit fifty percent (50%) of the net proceeds of the sale or lease in a health care economic development trust fund, which shall be under the control of the board of supervisors of the county in which the property is located. The use and distribution of the funds shall be at the discretion of the board of supervisors. The members of the board of supervisors shall serve as trustees of the trust fund.
The net proceeds in the health care economic development trust fund shall be distributed, in consultation with the Mississippi Development Authority, to promote job creation in the health care sector of the economy through new or expanded health care business development, now or expanded health care services, or new or expanded health care education programs or commercialization of health care research within the affected community; and
(ii) Appropriate fifty percent (50%) of the net proceeds of the sale or lease for funding the delivery of indigent care, including, but not limited to, primary care, physician specialty care, out-patient care, in-patient care, and behavioral health, to hospitals within the boundaries of the district with consideration given to the levels of indigent care provided.
For the purposes of this paragraph, the term "net proceeds" means the sale price after payment of all district debts and obligations.
(q) If a community hospital is sold or leased to a for-profit corporation or other business entity subject to local taxation, the resulting county and municipal ad valorem tax revenue from the formerly tax-exempt property shall be distributed by the board of supervisors or owner of the community hospital of the county in which the property is located. The distribution of such ad valorem tax revenues shall be made in consultation with the Mississippi Development Authority for purposes set forth in paragraph (p) of this subsection.
(r) If a hospital operated by a for-profit or not-for-profit Mississippi entity receives annually more than One Hundred Thousand Dollars ($100,000.00) in revenues from the county that owns the hospital, the Mississippi entity must be accountable to the county with respect to the manner in which the funds are expended by either:
(i) Having the revenues subject to annual appropriations by the county or municipality; or
(ii) Where there is a contract to provide revenues to the hospital, the term of which is longer than twelve (12) months, the board must be able to modify the contract upon twelve (12) months' notice to the hospital.
A not-for-profit entity that is subject to this subsection and does not currently comply with the accountability requirements in this subsection shall have twelve (12) months after the effective date of this act to modify any contracts with the community hospital in a manner that is consistent with this paragraph.
(s) Unless otherwise expressly stated in the lease documents, the transaction involving the sale or lease of a hospital may not be construed as:
(i) A transfer of a governmental function from the county to the private purchaser or lessee;
(ii) Constituting a financial interest of the public lessor in the private lessee; or
(iii) Making a private lessee an integral part of the public lessor's decision-making process.
(t) The lessee of a hospital, under this subsection, operating under a lease may not be construed to be "acting on behalf of" the lessor as that term is used in statute, unless the lease document expressly provides to the contrary.
(u) (i) If, whenever the sale of a public hospital by a public agency to a private entity pursuant to this subsection reflects that:
1. The private entity purchaser acquires one hundred percent (100%) ownership in the hospital enterprise;
2. The private entity purchases the physical plant of the hospital facility and has complete responsibility for the operation and maintenance of the facility, regardless of ownership of the underlying real property;
3. The public agency seller retains no control over decision making or policy making for the hospital;
4. The private entity purchaser receives no funding from the public agency seller other than by contract for services rendered to patients for whom the public agency seller has the responsibility to pay for hospital or medical care;
5. The public agency seller makes no substantial, investment in or loans to the private entity;
6. The private entity purchaser was not created by the public entity seller; and
7. The private entity purchaser operates primarily for its own financial interests and not primarily for the interests of the public agency, such a sale shall be considered a complete sale of the public agency's interest in the hospital or health care system.
(ii) A complete sate of a hospital or health care system as described in this paragraph may not be construed as:
1. A transfer of a governmental function from the community hospital to the private entity purchaser;
2. Constituting a financial interest of the public agency in the private entity purchaser;
3. Making the private entity purchaser an "agency" as that term is used in law;
4. Making the private entity purchaser an integral part of the public agency's decisio-nmaking process; or
5. Indicating that the private entity purchaser is "acting on behalf of a public agency" as that term is used in law.
(v) If the board elects to sell or lease the physical property of a community hospital and such property generated less than twenty percent (20%) of the hospital's net revenue within the hospital's or health care system's most recent fiscal year, the sale or lease of such property is exempt from the requirements under paragraphs (f) through (q) of this subsection. However, the board shall publicly advertise the meeting at which the proposed sate or lease of such property wilt be considered by the or publicly advertise the offer to accept proposals and receive proposals from all qualified purchasers and lessees. The sale or lease of the property must be for fair market value, or, if a lease is for less than fair market value, the lease must be in the best interest of the affected community.
(w) A community hospital that is under lease as of the effective date of this act is not subject to paragraphs (e) through (q) of this subsection as long as that lease remains in effect in accordance with the terms of the lease or such lease is modified, extended or renewed. However, such hospital or health care system becomes subject to the provisions of this act upon:
(i) Termination of the lease, unless the lease termination is the direct result of a new lease involving a partnership, transaction or contract in which both the existing lessor and lessee agree to the new lease between the lessor and another mutually agreed upon entity;
(ii) Notification provided to the lessee of a planned termination of the lease in accordance with the lease terms, unless the notification of lease termination is the direct result of a new lease involving a partnership, transaction or contract in which both the existing lessor and lessee agree to the new lease between the lessor and another mutually agreed upon entity;
(iii) Notification to the lessee that upon termination of the lease the lessor plans to seek potential new lessees or buyers; or
(iv) Notification to the lessee that the lessor plans to resume operation of the hospital or health care system at the termination of the lease.
Any such hospital may not thereafter be sold, leased to another lessee, or operated by the owner without first complying with this subsection.
SECTION 2. This act shall take effect and be in force from and after July 1, 2013.
