S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5375--A
                                                         Cal. No. 148
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 9, 2023
                                ___________
 
 Introduced  by  M.  of A. PAULIN, L. ROSENTHAL, COLTON, SAYEGH -- Multi-
   Sponsored by -- M. of A. CARROLL, COOK, DINOWITZ, GLICK, SIMON -- read
   once and referred to the Committee on Health --  ordered  to  a  third
   reading,  amended  and  ordered  reprinted, retaining its place on the
   order of third reading
 
 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.
              

                                                            LBD09072-03-4
 A. 5375--A                          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;
   (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.