Report Title:
Acquisition of hospitals
Description:
Requires approval by SHPDA prior to the acquisition of an ownership or controlling interest in a private nonprofit hospital by a nonprofit corporation or a government entity.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1587 |
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TWENTY-FIRST LEGISLATURE, 2001 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ACQUISITION OF HOSPITALS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 323D-71, Hawaii Revised Statutes, is amended by amending the definition of "acquisition" to read as follows:
""Acquisition" means any acquisition by a person or persons of an ownership or controlling interest in a hospital, whether by purchase, merger, lease, gift, or otherwise, that results in a change of ownership or control of twenty per cent or greater or which results in the acquiring person or persons holding a fifty per cent or greater interest in the ownership or control of that hospital[, but does not include the acquisition of an ownership or controlling interest in a private nonprofit hospital by a transferee that:
(1) Is a nonprofit corporation having a substantially similar charitable health care purpose as the transferor or is a governmental entity;
(2) Is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or [is] a governmental entity; and
(3) Maintains representation from the affected community on the local board]."
SECTION 2. Section 323D-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No person shall engage in the acquisition of a hospital without first:
(1) Applying for and receiving the approval of the agency; and
(2) Notifying the attorney general and, if applicable, receiving approval from the attorney general pursuant to this part[;
unless the acquiring person is a nonprofit corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or is a governmental entity]."
SECTION 3. Statutory material to be repealed is bracketed and stricken.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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