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A00190 Summary:

BILL NOA00190
 
SAME ASNo Same As
 
SPONSORGottfried
 
COSPNSRPaulin, Rosenthal L, Abinanti, Colton, Sayegh, Galef, Barron
 
MLTSPNSRCarroll, Cook, Cymbrowitz, Dinowitz, Englebright, Glick, Perry, Simon
 
Amd 2801-a, Pub Health L
 
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).
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A00190 Actions:

BILL NOA00190
 
01/06/2021referred to health
01/26/2021reported
01/28/2021advanced to third reading cal.58
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A00190 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A190
 
SPONSOR: Gottfried
  TITLE OF BILL: An act to amend the public health law, in relation to hospital estab- lishment   PURPOSE OR GENERAL IDEA OF BILL: To assure that persons or entities with operational authority over a hospital are subject to establishment approval by the Public Health Council.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends PHL § 2801-a(1) by adding new paragraphs (b), (c) and (d) as follows: (b) specifies those characteristics which indicate oper- ational authority over a hospital; (c) provides that any person or enti- ty which exercises operational authority over a hospital is subject to establishment approval by the Public Health Council; and, (d) provides that any assignment or delegation of authority to operate a hospital is subject to establishment approval by the Public Health Council. Section 2 provides for an immediate effective date.   JUSTIFICATION: Under current provisions of the Public Health Law, a hospital cannot be established, or ownership changed, without the prior approval of the Public Health Council as part of an establishment process which includes a determination of public need. These provisions do not apply to situations or arrangements in which a corporation exercises "passive" control over a hospital, but not direct day-to-day operational authority. Many of the recent, and pending, hospital merger, network and affiliation arrangements which have resulted in the reduction or elimination of certain health care services in a community are a result of these "passive" corporate arrangements. This bill would clarify what constitutes operational authority over a hospital to include "passive" control corporate models. In so doing these arrangements, and their potential impact on the availability of health care services in a community, would be subject to an establish- ment review by the Public Health Council.   PRIOR LEGISLATIVE HISTORY: 1998: A.10693 - passed Assembly; 1999-2000: A.4096 - advanced to 3rd reading 2001-2002: A.2674 - advanced to 3rd reading 2003-2004: A.5665 - advanced to 3rd reading 2005-2006: A.5346 - advanced to 3rd reading 2007-2008: A.3482 advanced to 3rd reading 2009-2010: A.877 - advanced to 3rd reading 2011-2012: A.660 - advanced to 3rd reading 2013-2014: A .5341-A - advanced to 3rd reading 2015-2016: A.841 - advanced to 3rd reading 2017-2018: A.2441- advanced to 3rd reading 2019-2020: A.1147 - advanced to 3rd reading   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: Immediately
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A00190 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           190
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 6, 2021
                                       ___________
 
        Introduced  by  M.  of  A.  GOTTFRIED,  PAULIN,  L. ROSENTHAL, ABINANTI,
          COLTON, SAYEGH, GALEF -- Multi-Sponsored by -- M. of A. CARROLL, COOK,
          CYMBROWITZ, DINOWITZ, ENGLEBRIGHT, GLICK, 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,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00076-01-1

        A. 190                              2
 
     1  corporation or other entity shall be deemed to have authority to operate
     2  a hospital if it has or shares decision-making authority over any of the
     3  following:
     4    (i)  appointment or dismissal of a hospital's management-level employ-
     5  ees or medical staff;
     6    (ii) election or removal of members of the governing board  or  corpo-
     7  rate officers of the hospital;
     8    (iii) approval of the hospital's operating or capital budgets;
     9    (iv)  adoption,  approval  or  enforcement of the hospital's operating
    10  policies or procedures;
    11    (v)  approval  of  applications  for  construction  or   establishment
    12  approval filed by or on behalf of the hospital;
    13    (vi)  approval  of  hospital  debt  necessary  to  finance the cost of
    14  compliance with operational or physical plant standards required by law;
    15    (vii) approval of contracts for management  of  the  hospital  or  for
    16  clinical services at the hospital; and
    17    (viii)  approval of settlements of administrative proceedings or liti-
    18  gation to which the hospital is party that exceed the hospital's  insur-
    19  ance coverage or coverage by any applicable self-insurance fund.
    20    (c)  Any  person, partnership, company, stockholder, member, or corpo-
    21  ration, or other entity with authority to operate a  hospital  shall  be
    22  subject  to  approval  for establishment by the public health and health
    23  planning council under this section, unless otherwise authorized by this
    24  chapter to operate a hospital without such establishment approval.
    25    (d) Any assignment or delegation of any authority to operate a  hospi-
    26  tal,  as set forth in paragraph (b) of this subdivision shall be subject
    27  to approval for establishment by the public health and  health  planning
    28  council under this section, except for:
    29    (i)  assignment or delegation by the governing body of the hospital to
    30  a committee of the governing body, a corporate officer or an employee of
    31  the hospital; or
    32    (ii) a management contract under which a governing body contracts with
    33  an entity to manage day-to-day operations of a hospital or a portion  or
    34  service  thereof, provided that such a management contract shall require
    35  the written approval of the commissioner before it may take effect.
    36    § 2. This act shall take effect immediately.
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