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:
Section 1. Subdivision 1 of section 2801-a of the public health law,
as amended by section 57 of part A of chapter 58 of the laws of 2010, 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 and health plan-
ning 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 and health plan-
ning council, and when otherwise required by law of a justice of the
supreme court, endorsed on or annexed to the certificate of incorpo-
ration. 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 establishment or operation of
any hospital as defined in this article, shall be filed with the depart-
ment of state except upon the approval of the public health and health
planning 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,
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:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07047-01-5
S. 3366 2
(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;
(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 AND HEALTH
PLANNING 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 AND HEALTH PLANNING
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.
§ 2. This act shall take effect immediately, provided, however, that
the provisions of this act shall only apply to applications submitted to
the public health and health planning council seeking approval for
establishment after the effective date of this act.