Provides person/entity with authority to operate a hospital shall be subject to approval by public health and health planning council for establishment of hospital

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          3366

                               2025-2026 Regular Sessions

                                    I N  S E N A T E

                                    January 27, 2025
                                       ___________

        Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
          printed to be committed 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,
    23  CORPORATION OR OTHER ENTITY SHALL BE DEEMED TO HAVE AUTHORITY TO OPERATE
    24  A HOSPITAL IF IT HAS OR SHARES DECISION-MAKING AUTHORITY OVER ANY OF THE
    25  FOLLOWING:

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07047-01-5
        S. 3366                             2

     1    (I) APPOINTMENT OR DISMISSAL OF A HOSPITAL'S MANAGEMENT-LEVEL  EMPLOY-
     2  EES OR MEDICAL STAFF;
     3    (II)  ELECTION  OR REMOVAL OF MEMBERS OF THE GOVERNING BOARD OR CORPO-
     4  RATE OFFICERS OF THE HOSPITAL;
     5    (III) APPROVAL OF THE HOSPITAL'S OPERATING OR CAPITAL BUDGETS;
     6    (IV) ADOPTION, APPROVAL OR ENFORCEMENT  OF  THE  HOSPITAL'S  OPERATING
     7  POLICIES OR PROCEDURES;
     8    (V)   APPROVAL  OF  APPLICATIONS  FOR  CONSTRUCTION  OR  ESTABLISHMENT
     9  APPROVAL FILED BY OR ON BEHALF OF THE HOSPITAL;
    10    (VI) APPROVAL OF HOSPITAL  DEBT  NECESSARY  TO  FINANCE  THE  COST  OF
    11  COMPLIANCE WITH OPERATIONAL OR PHYSICAL PLANT STANDARDS REQUIRED BY LAW;
    12    (VII)  APPROVAL  OF  CONTRACTS  FOR  MANAGEMENT OF THE HOSPITAL OR FOR
    13  CLINICAL SERVICES AT THE HOSPITAL; AND
    14    (VIII) APPROVAL OF SETTLEMENTS OF ADMINISTRATIVE PROCEEDINGS OR  LITI-
    15  GATION  TO WHICH THE HOSPITAL IS PARTY THAT EXCEED THE HOSPITAL'S INSUR-
    16  ANCE COVERAGE OR COVERAGE BY ANY APPLICABLE SELF-INSURANCE FUND.
    17    (C) ANY PERSON, PARTNERSHIP, COMPANY, STOCKHOLDER, MEMBER,  OR  CORPO-
    18  RATION,  OR  OTHER  ENTITY WITH AUTHORITY TO OPERATE A HOSPITAL SHALL BE
    19  SUBJECT TO APPROVAL FOR ESTABLISHMENT BY THE PUBLIC  HEALTH  AND  HEALTH
    20  PLANNING COUNCIL UNDER THIS SECTION, UNLESS OTHERWISE AUTHORIZED BY THIS
    21  CHAPTER TO OPERATE A HOSPITAL WITHOUT SUCH ESTABLISHMENT APPROVAL.
    22    (D)  ANY ASSIGNMENT OR DELEGATION OF ANY AUTHORITY TO OPERATE A HOSPI-
    23  TAL, AS SET FORTH IN PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE  SUBJECT
    24  TO  APPROVAL  FOR ESTABLISHMENT BY THE PUBLIC HEALTH AND HEALTH PLANNING
    25  COUNCIL UNDER THIS SECTION, EXCEPT FOR:
    26    (I) ASSIGNMENT OR DELEGATION BY THE GOVERNING BODY OF THE HOSPITAL  TO
    27  A COMMITTEE OF THE GOVERNING BODY, A CORPORATE OFFICER OR AN EMPLOYEE OF
    28  THE HOSPITAL; OR
    29    (II) A MANAGEMENT CONTRACT UNDER WHICH A GOVERNING BODY CONTRACTS WITH
    30  AN  ENTITY TO MANAGE DAY-TO-DAY OPERATIONS OF A HOSPITAL OR A PORTION OR
    31  SERVICE THEREOF, PROVIDED THAT SUCH A MANAGEMENT CONTRACT SHALL  REQUIRE
    32  THE WRITTEN APPROVAL OF THE COMMISSIONER BEFORE IT MAY TAKE EFFECT.
    33    §  2.  This act shall take effect immediately, provided, however, that
    34  the provisions of this act shall only apply to applications submitted to
    35  the public health and  health  planning  council  seeking  approval  for
    36  establishment after the effective date of this act.