HB2459 SFA Takubo 3-28 #2
Senator Takubo moved to amend the amendment on page twenty-one, section eight, subsection (a), subdivision (1), line four, after the word “development” by inserting a comma and the word “acquisition”;
On page twenty-five, section ten, lines twenty-one through thirty-one by striking out all of subdivisions (6) and (7) and inserting in lieu thereof the following:
“(6) (A) Notwithstanding the provisions of section seventeen of this article, any hospital that holds a valid certificate of need issued pursuant to this article, may transfer that certificate of need to a person purchasing that hospital, or all or substantially all of its assets, if the hospital is financially distressed. A hospital is financially distressed if, at the time of its purchase:
(i) It has filed a petition for voluntary bankruptcy;
(ii) It has been the subject of an involuntary petition for bankruptcy;
(iii) It is in receivership;
(iv) It is operating under a forbearance agreement with one or more of its major creditors;
(v) It is in default of its obligations to pay one or more of its major creditors and is in violation of the material, substantive terms of its debt instruments with one or more of its major creditors; or
(vi) It is insolvent: evidenced by balance sheet insolvency and/or the inability to pay its debts as they come due in the ordinary course of business.
(B) A financially distressed hospital which is being purchased pursuant to the provisions of this subsection shall give notice to the authority of the sale thirty days prior to the closing of the transaction and shall file simultaneous with that notice evidence of its financial status. The financial status or distressed condition of a hospital shall be evidenced by the filing of any of the following:
(i) A copy of a forbearance agreement;
(ii) A copy of a petition for voluntary or involuntary bankruptcy;
(iii) Written evidence of receivership, or
(iv) Documentation establishing the requirements of subparagraph (v) or (vi), paragraph (A) of this subdivision. The names of creditors may be redacted by the filing party.
(C) Any substantial change to the capacity of services offered in that hospital made subsequent to that transaction would remain subject to the requirements for the issuance of a certificate of need as otherwise set forth in this article.
(D) Any person purchasing a financially distressed hospital, or all or substantially all of its assets, that has applied for a certificate of need after January 1, 2017, shall qualify for an exemption from certificate of need;
(7) The acquisition by a qualified hospital which is party to an approved cooperative agreement as provided in section twenty-eight, article twenty-nine-b, chapter sixteen of this code, of a hospital located within a distance of twenty highway miles of the main campus of the qualified hospital; and
(8) The acquisition by a hospital of a physician practice group which owns an ambulatory surgical center as defined in this article.”;
On page twenty-six, section eleven, subsection (c), subdivision (1), line thirty-three, after the word “business” by striking out the period and the word “If” and inserting in lieu thereof the words “and if”;
On page twenty-six, section eleven, subsection (c), subdivision (1), line thirty-eight, after the word “percent” by changing the period to a colon and inserting the following proviso: Provided, That these limitations on the exemption for a private office practice with more than one location shall not apply to a private office practice with more than twenty locations in the state at the time of the changes made to this article during the 2017 Regular Session of the Legislature.;
On page twenty-seven, section eleven, subsection (b), subdivision (4), line fifty-eight, after the word “facility” by changing the period to a colon and inserting the following proviso: Provided, That a skilled nursing facility developed pursuant to subdivision (17) of this section and subsequently acquired pursuant to this subdivision may not transfer or sell any of the skilled nursing home beds of the acquired skilled nursing facility until the skilled nursing facility has been in operation for at least ten years.;
On page twenty-nine, section eleven, subsection (b), subdivision (17), lines ninety-three and ninety-four, by striking out the following: “The beds may not be transferred or sold until the skill nursing facility has been in operation for at least ten years;”;
On page sixty, section thirty, lines twenty-five through twenty-eight, by striking out all of subdivision (9);
By renumbering the remaining subsection.