S T A T E O F N E W Y O R K
________________________________________________________________________
877
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. GOTTFRIED, JACOBS, JOHN, TOWNS, PAULIN, EDDING-
TON, HOOPER -- Multi-Sponsored by -- M. of A. BRENNAN, CHRISTENSEN,
CLARK, COOK, CYMBROWITZ, DESTITO, DINOWITZ, ENGLEBRIGHT, ESPAILLAT,
FARRELL, GLICK, GREENE, LIFTON, P. RIVERA, WRIGHT -- read once and
referred 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:
Section 1. Subdivision 1 of section 2801-a of the public health law,
as amended by chapter 667 of the laws of 1997, is amended to read as
follows:
1. (A) No hospital, as defined in this article, shall be established
except with the written approval of the public health council. No
certificate of incorporation of a business membership or not-for-profit
corporation shall hereafter be filed which includes among its corporate
purposes or powers the establishment or operation of any hospital, as
defined in this article, or the solicitation of contributions for any
such purpose, or two or more of such purposes, except with the written
approval of the public health council, and when otherwise required by
law of a justice of the supreme court, endorsed on or annexed to the
certificate of incorporation. No articles of organization of a limited
liability company established pursuant to the New York limited liability
company law which includes among its powers or purposes the establish-
ment or operation of any hospital as defined in this article, shall be
filed with the department of state except upon the approval of the
public health council.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, A PERSON (OTHER THAN A
PERSON ACTING SOLELY AS A MEMBER OF THE GOVERNING BODY OF A HOSPITAL OR
AN EMPLOYEE OF A HOSPITAL), PARTNERSHIP, COMPANY, STOCKHOLDER, MEMBER,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00803-01-9
A. 877 2
CORPORATION OR OTHER ENTITY SHALL BE DEEMED TO HAVE AUTHORITY TO OPERATE
A HOSPITAL IF IT HAS OR SHARES DECISION-MAKING AUTHORITY OVER ANY OF THE
FOLLOWING:
(I) APPOINTMENT OR DISMISSAL OF A HOSPITAL'S MANAGEMENT-LEVEL EMPLOY-
EES OR MEDICAL STAFF;
(II) ELECTION OR REMOVAL OF MEMBERS OF THE GOVERNING BOARD OR CORPO-
RATE OFFICERS OF THE HOSPITAL;
(III) APPROVAL OF THE HOSPITAL'S OPERATING OR CAPITAL BUDGETS;
(IV) ADOPTION, APPROVAL OR ENFORCEMENT OF THE HOSPITAL'S OPERATING
POLICIES OR PROCEDURES, OR THE MISSION AND PHILOSOPHY OF THE HOSPITAL;
(V) APPROVAL OF APPLICATIONS FOR CONSTRUCTION OR ESTABLISHMENT
APPROVAL FILED BY OR ON BEHALF OF THE HOSPITAL;
(VI) APPROVAL OF HOSPITAL DEBT NECESSARY TO FINANCE THE COST OF
COMPLIANCE WITH OPERATIONAL OR PHYSICAL PLANT STANDARDS REQUIRED BY LAW;
(VII) APPROVAL OF CONTRACTS FOR MANAGEMENT OF THE HOSPITAL OR FOR
CLINICAL SERVICES AT THE HOSPITAL; AND
(VIII) APPROVAL OF SETTLEMENTS OF ADMINISTRATIVE PROCEEDINGS OR LITI-
GATION TO WHICH THE HOSPITAL IS PARTY THAT EXCEED THE HOSPITAL'S INSUR-
ANCE COVERAGE OR COVERAGE BY ANY APPLICABLE SELF-INSURANCE FUND.
(C) ANY PERSON, PARTNERSHIP, COMPANY, STOCKHOLDER, MEMBER, OR CORPO-
RATION, OR OTHER ENTITY WITH AUTHORITY TO OPERATE A HOSPITAL SHALL BE
SUBJECT TO APPROVAL FOR ESTABLISHMENT BY THE PUBLIC HEALTH COUNCIL UNDER
THIS SECTION, UNLESS OTHERWISE AUTHORIZED BY THIS CHAPTER TO OPERATE A
HOSPITAL WITHOUT SUCH ESTABLISHMENT APPROVAL.
(D) ANY ASSIGNMENT OR DELEGATION OF ANY AUTHORITY TO OPERATE A HOSPI-
TAL, AS SET FORTH IN PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE SUBJECT
TO APPROVAL FOR ESTABLISHMENT BY THE PUBLIC HEALTH COUNCIL UNDER THIS
SECTION, EXCEPT FOR:
(I) ASSIGNMENT OR DELEGATION BY THE GOVERNING BODY OF THE HOSPITAL TO
A COMMITTEE OF THE GOVERNING BODY, A CORPORATE OFFICER OR AN EMPLOYEE OF
THE HOSPITAL; OR
(II) A MANAGEMENT CONTRACT UNDER WHICH A GOVERNING BODY CONTRACTS WITH
AN ENTITY TO MANAGE DAY-TO-DAY OPERATIONS OF A HOSPITAL OR A PORTION OR
SERVICE THEREOF, PROVIDED THAT SUCH A MANAGEMENT CONTRACT SHALL REQUIRE
THE WRITTEN APPROVAL OF THE COMMISSIONER BEFORE IT MAY TAKE EFFECT.
(E) ANY AMENDMENT TO A MISSION STATEMENT OF A HOSPITAL UNDER SECTION
TWENTY-EIGHT HUNDRED THREE-L OF THIS ARTICLE SHALL BE SUBJECT TO REVIEW
BY THE PUBLIC HEALTH COUNCIL PRIOR TO ITS ADOPTION. THE PUBLIC HEALTH
COUNCIL SHALL ISSUE AN ADVISORY DETERMINATION DESCRIBING THE IMPACT OF
SUCH AMENDMENT ON PUBLIC NEED FOR AND THE AVAILABILITY OF HEALTH
SERVICES IN ACCORDANCE WITH THIS SECTION.
S 2. Subdivision 1 of section 2803-l of the public health law, as
amended by chapter 639 of the laws of 1996, is amended to read as
follows:
1. The governing body of a voluntary non-profit general hospital must
issue an organizational mission statement identifying at a minimum THE
MISSION AND PHILOSOPHY OF THE HOSPITAL AS IT RELATES TO THE PROVISION OF
ALL HEALTH CARE SERVICES, the populations and communities served by the
hospital and the hospital's commitment to meeting the health care needs
of the community.
S 3. Subdivision 4 of section 2803-l of the public health law, as
amended by chapter 639 of the laws of 1996, is amended to read as
follows:
4. The governing body shall file with the commissioner its mission
statement, its annual implementation report, and at least every three
years a report detailing amendments to the statement and reflecting
A. 877 3
changes in the hospital's operational and financial commitment to meet-
ing the health care needs of the community, providing charity care
services, and improving access to health care services by the under-
served. ANY AMENDMENT TO A MISSION STATEMENT AS IT RELATES TO THE
PROVISION OR AVAILABILITY OF HEALTH CARE SERVICES PROVIDED BY A HOSPITAL
SHALL BE FILED WITH THE COMMISSIONER AND THE PUBLIC HEALTH COUNCIL AT
LEAST NINETY DAYS PRIOR TO ITS ADOPTION BY THE GOVERNING BODY. THE
PUBLIC HEALTH COUNCIL SHALL REVIEW SUCH AMENDMENT AND ITS IMPACT ON
PUBLIC NEED FOR AND THE AVAILABILITY OF HEALTH SERVICES, AND, PURSUANT
TO SECTION TWENTY-EIGHT HUNDRED ONE-A OF THIS ARTICLE, SHALL ISSUE AN
ADVISORY DETERMINATION WITH RESPECT TO SUCH IMPACT.
S 4. This act shall take effect immediately.