AN ACT REQUIRING AN EVALUATION OF THE APPOINTMENT OF A RECEIVER TO MANAGE HOSPITALS IN FINANCIAL DISTRESS OR OPERATIONAL CRISIS.

Plain English Breakdown

The bill summary does not provide details on what constitutes a hospital in financial distress or operational crisis, but these are specified in the full text of the bill.

Act Requiring Evaluation for Hospital Receivership

This act requires the Commissioner of Public Health to evaluate whether the Attorney General should be allowed to appoint a receiver to manage hospitals in financial distress or operational crisis.

What This Bill Does

• Defines 'hospital in financial distress or operational crisis' as one that has filed for bankruptcy protection, received negative opinions from auditors, owes significant overdue fees or taxes, defaulted on bond contracts, failed to pay wages for two consecutive periods without dispute, or had its license revoked by the Commissioner of Public Health.
• Requires the Commissioner of Public Health to assess whether the Attorney General should be able to petition a court to appoint a receiver to manage such hospitals.
• Directs the Commissioner to report findings and recommendations by October 1, 2027.

Who It Names or Affects

• Hospitals in financial distress or operational crisis
• The Commissioner of Public Health
• The Attorney General

Terms To Know

receiver

A person appointed by a court to manage the affairs of an organization, like a hospital, that is in financial trouble.

operational crisis

A situation where a hospital faces severe difficulties or emergencies that threaten its ability to function properly.

Limits and Unknowns

• The bill does not specify what actions should be taken based on the evaluation.
• It is unclear how many hospitals will meet the criteria for financial distress or operational crisis.

Official Summary Text

To require the Commissioner of Public Health to evaluate whether the Attorney General should be authorized to appoint a receiver to manage hospitals in financial distress or operational crisis.

Current Bill Text

House Bill No. 5165

Special Act No. 26-29

AN ACT REQUIRING AN EVALUATION OF THE APPOINTMENT OF
A RECEIVER TO MANAGE HOSPITALS IN FINANCIAL DISTRESS
OR OPERATIONAL CRISIS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (Effective from passage) (a) As used in this section, "a hospital
in financial distress or operational crisis" means a hospital that (1) has
filed for bankruptcy protection, or (2) is experiencing three or more of
the following conditions: (A) The hospital has been issued a nega tive
going concern opinion by its independent auditing firm; (B) the hospital
owes fees, taxes or an assessment to one or more public entities and such
fees or taxes are, or such assessment is, not less than one hundred eighty
days past due, provided the hospital has not (i) commenced a
proceeding to contest the payment of such fees, taxes or assessment, or
(ii) been granted an extension of time to pay such fees, taxes or
assessment; (C) the hospital is in default of a mate rial covenant on a
bond contract or similar debt instrument; (D) the hospital has failed to
make a payment of wages, as defined in section 31 -71a of the general
statutes, for two or more consecutive pay periods, provided the amount
of such wages is not in dispute pursuant to section 31-71d of the general
statutes; or (E) the Commissioner of Public Health has revoked the
hospital's license or the Centers for Medicare and Medicaid Services has
revoked the hospital's participating provider status.
House Bill No. 5165

Special Act No. 26-29 2 of 2

(b) The Commissioner of Public Health shall evaluate whether the
Attorney General should be authorized to petition the Superior Court
for the appointment of a receiver to manage a hospital in financial
distress or operational crisis. Not later than October 1, 2027, the
commissioner shall report, in accordance with the provisions of section
11-4a of the general statutes, to the joint standing committee of the
General Assembly having cognizance of matters relating to public
health regarding such evaluation.