Bill Text: NY A01147 | 2019-2020 | General Assembly | Introduced


Bill Title: Makes various provisions regarding establishment of a hospital: provides that any person and various other listed entities (i.e., partnership, company, stockholder, member, corporation or other entity) with authority to operate a hospital, shall be subject to approval for establishment by the public health council (unless otherwise authorized to operate a hospital without such establishment approval); provides that any assignment or delegation of any authority to operate a hospital shall be subject to approval for establishment by the council (with certain specified exceptions); specifies circumstances under which a person, partnership, company, etc. shall be deemed to have authority to operate a hospital subject to approval for establishment by the council (with certain specified exceptions); specifies circumstances under which a person, partnership, company, etc. shall be deemed to have authority to operate a hospital (i.e., if it has decision-making authority over listed matters).

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced) 2019-02-07 - advanced to third reading cal.37 [A01147 Detail]

Download: New_York-2019-A01147-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1147
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 14, 2019
                                       ___________
        Introduced  by M. of A. GOTTFRIED, PAULIN, L. ROSENTHAL, JAFFEE, ABINAN-
          TI, D'URSO, COLTON -- Multi-Sponsored by -- M. of  A.  CARROLL,  COOK,
          CYMBROWITZ, DINOWITZ, ENGLEBRIGHT, GLICK, LIFTON, PERRY, SIMON -- read
          once and referred to the Committee on Health
        AN  ACT  to  amend the public health law, in relation to hospital estab-
          lishment
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision 1 of section 2801-a of the public health law,
     2  as amended by section 57 of part A of chapter 58 of the laws of 2010, is
     3  amended to read as follows:
     4    1. (a) No hospital, as defined in this article, shall  be  established
     5  except  with  the written approval of the public health and health plan-
     6  ning council. No certificate of incorporation of a  business  membership
     7  or  not-for-profit  corporation  shall hereafter be filed which includes
     8  among its corporate purposes or powers the establishment or operation of
     9  any hospital, as  defined  in  this  article,  or  the  solicitation  of
    10  contributions  for  any  such  purpose, or two or more of such purposes,
    11  except with the written approval of the public health and  health  plan-
    12  ning  council,  and  when  otherwise required by law of a justice of the
    13  supreme court, endorsed on or annexed to  the  certificate  of  incorpo-
    14  ration.  No  articles  of  organization  of  a limited liability company
    15  established pursuant to the New York limited liability company law which
    16  includes among its powers or purposes the establishment or operation  of
    17  any hospital as defined in this article, shall be filed with the depart-
    18  ment  of  state except upon the approval of the public health and health
    19  planning council.
    20    (b) For the purposes of this  subdivision,  a  person  (other  than  a
    21  person  acting solely as a member of the governing body of a hospital or
    22  an employee of a hospital), partnership, company,  stockholder,  member,
    23  corporation or other entity shall be deemed to have authority to operate
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03363-01-9

        A. 1147                             2
     1  a hospital if it has or shares decision-making authority over any of the
     2  following:
     3    (i)  appointment or dismissal of a hospital's management-level employ-
     4  ees or medical staff;
     5    (ii) election or removal of members of the governing board  or  corpo-
     6  rate officers of the hospital;
     7    (iii) approval of the hospital's operating or capital budgets;
     8    (iv)  adoption,  approval  or  enforcement of the hospital's operating
     9  policies or procedures;
    10    (v)  approval  of  applications  for  construction  or   establishment
    11  approval filed by or on behalf of the hospital;
    12    (vi)  approval  of  hospital  debt  necessary  to  finance the cost of
    13  compliance with operational or physical plant standards required by law;
    14    (vii) approval of contracts for management  of  the  hospital  or  for
    15  clinical services at the hospital; and
    16    (viii)  approval of settlements of administrative proceedings or liti-
    17  gation to which the hospital is party that exceed the hospital's  insur-
    18  ance coverage or coverage by any applicable self-insurance fund.
    19    (c)  Any  person, partnership, company, stockholder, member, or corpo-
    20  ration, or other entity with authority to operate a  hospital  shall  be
    21  subject  to  approval  for establishment by the public health and health
    22  planning council under this section, unless otherwise authorized by this
    23  chapter to operate a hospital without such establishment approval.
    24    (d) Any assignment or delegation of any authority to operate a  hospi-
    25  tal,  as set forth in paragraph (b) of this subdivision shall be subject
    26  to approval for establishment by the public health and  health  planning
    27  council under this section, except for:
    28    (i)  assignment or delegation by the governing body of the hospital to
    29  a committee of the governing body, a corporate officer or an employee of
    30  the hospital; or
    31    (ii) a management contract under which a governing body contracts with
    32  an entity to manage day-to-day operations of a hospital or a portion  or
    33  service  thereof, provided that such a management contract shall require
    34  the written approval of the commissioner before it may take effect.
    35    § 2. This act shall take effect immediately.
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