SB 916 - Hospital Conversions

• Expands hospital conversion approval requirements to include transfers between nonprofit hospitals, effective October 1, 2015, requiring approval from the Attorney General and Commissioner of Public Health before any material asset transfers or control changes.

• Establishes expedited review process for distressed nonprofit hospitals meeting specific financial criteria (operating losses, low cash reserves, high debt ratios, low occupancy rates, or below-investment-grade rating) with 90-day approval timeline instead of 120 days.

• Requires comprehensive application submissions including detailed financial statements, board meeting minutes, conflict of interest disclosures, community benefit plans, and fair market value assessments for all hospital conversions.

• Mandates public hearings in affected communities before approval decisions and requires independent health care access monitors for five years post-conversion when for-profit entities acquire nonprofit hospitals.

• Requires for-profit hospital purchasers to reimburse municipalities for lost tax revenue previously received as grants in lieu of taxes for converted nonprofit hospital properties.