S T A T E   O F   N E W   Y O R K
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                                   660

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of  A.  GOTTFRIED,  JACOBS, TOWNS, PAULIN, HOOPER --
  Multi-Sponsored by -- M.   of A.  BRENNAN,  CLARK,  COOK,  CYMBROWITZ,
  DESTITO,  DINOWITZ,  ENGLEBRIGHT,  FARRELL,  GLICK,  LIFTON,  PHEFFER,
  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 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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02282-02-1

A. 660                              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 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.
  (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 AND HEALTH PLANNING COUNCIL PRIOR TO ITS  ADOPTION.
THE PUBLIC HEALTH COUNCIL SHALL ISSUE AN ADVISORY DETERMINATION DESCRIB-
ING 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. 660                              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  AND  HEALTH
PLANNING  COUNCIL  AT  LEAST  NINETY  DAYS  PRIOR TO ITS ADOPTION BY THE
GOVERNING BODY. THE PUBLIC HEALTH  AND  HEALTH  PLANNING  COUNCIL  SHALL
REVIEW  SUCH  AMENDMENT AND ITS IMPACT ON PUBLIC NEED FOR AND THE AVAIL-
ABILITY 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.