SB 460 Summary

• Prohibits nonprofit hospitals from transferring material assets or changing control to for-profit entities without prior approval from the Commissioner of Public Health and Attorney General, effective immediately with an October 1, 2014 deadline for applications.

• Establishes comprehensive application and review process requiring detailed information including financial statements, conflict of interest disclosures, charitable asset accounting, and fairness evaluations; Commissioner and Attorney General must decide within 120 days or application is deemed approved.

• Creates expedited 90-day review process for conversions between nonprofit hospitals or involving distressed hospitals (those with significant financial hardship meeting specified criteria like operating losses, low cash reserves, or high debt ratios).

• Requires for-profit purchasers to hire independent health care access monitors for five years post-conversion to track community benefits and uncompensated care, and to reimburse municipalities for lost grants in lieu of taxes.

• Adds certificate of need requirements for termination of reproductive services by hospitals and expands hospital reporting requirements to include asset transfers and operational changes to for-profit entities.