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.