NY State Senate Bill 2023-S8987

Senate Bill S8987

2023-2024 Legislative Session

Provides person/entity with authority to operate a hospital shall be subject to approval by public health and health planning council for establishment of hospital

download bill text pdf

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 06, 2024	referred to health delivered to assembly passed senate
May 30, 2024	amended on third reading 8987a
May 13, 2024	advanced to third reading
May 08, 2024	2nd report cal.
May 07, 2024	1st report cal.999
Apr 08, 2024	referred to health

Votes

- Jun 6, 2024 - Floor Vote
  S8987
  
  41
  
  Aye
  
  20
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 6, 2024
      
      aye (41)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Liu
      
      Mannion
      
      Martinez
      
      May
      
      Mayer
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      nay (20)
      
      Ashby
      
      Borrello
      
      Canzoneri-Fitzpatrick
      
      Gallivan
      
      Griffo
      
      Helming
      
      Lanza
      
      Martins
      
      Mattera
      
      Murray
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rhoads
      
      Rolison
      
      Stec
      
      Tedisco
      
      Weber
      
      Weik
      
      excused (1)
      
      Walczyk
  May 7, 2024 - Health Committee Vote
  S8987
  
  10
  
  Aye
  
  1
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Health Committee Vote: May 7, 2024
      
      aye (10)
      
      Brouk
      
      Felder
      
      Hoylman-Sigal
      
      Mannion
      
      May
      
      Myrie
      
      Rivera
      
      Salazar
      
      Thomas
      
      Webb
      
      nay (1)
      
      Ashby
      
      aye wr (4)
      
      Gallivan
      
      Martins
      
      Rhoads
      
      Stec

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S8987 - Details

See Assembly Version of this Bill:: A5375
Current Committee:: Assembly Health
Law Section:: Public Health Law
Laws Affected:: Amd §2801-a, Pub Health L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A877
2011-2012: A660
2013-2014: A5341
2015-2016: A841
2017-2018: A2441
2019-2020: A1147
2021-2022: A190

2023-S8987 - Summary

Makes various provisions regarding establishment of a hospital: provides that any person and various other listed entities (i.e., partnership, company, stockholder, member, corporation or other entity) with authority to operate a hospital, shall be subject to approval for establishment by the public health council (unless otherwise authorized to operate a hospital without such establishment approval); provides that any assignment or delegation of any authority to operate a hospital shall be subject to approval for establishment by the council (with certain specified exceptions); specifies circumstances under which a person, partnership, company, etc. shall be deemed to have authority to operate a hospital subject to approval for establishment by the council (with certain specified exceptions); specifies circumstances under which a person, partnership, company, etc. shall be deemed to have authority to operate a hospital (i.e., if it has decision-making authority over listed matters).

2023-S8987 - Sponsor Memo

                                 
BILL NUMBER: S8987

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, in relation to hospital estab-
lishment

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure that individuals or entities with decision-making power
regarding the operation of a hospital are subject to approval for estab-
lishment by the Public Health and Health Planning Council.  Outlines
detailed criteria and exceptions for such approval, emphasizing the
importance of regulatory oversight in maintaining the quality and integ-
rity of health care facilities.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 1 of section 2801-a of the public health
law as it relates to the establishment of incorporation of hospitals, to
include new subdivisions new (b), (c), and (d). It would specify that a

person, partnership, company, stockholder, member, corporation or other
entity would be deemed to have authority to operate a hospital if they
have or share the decision-making authority over any of the following
items listed in new subdivision (c). Requires such person or entity to
obtain establishment approval by the Public Health and Health Planning
Council and outlines that any assignment or delegation of operational
authority is subject to establishment approval, except for an assignment
or delegation to a committee, corporate officer, or an employee of the
hospital or a management contract for day-to-day operations of a hospi-
tal and such contract would require the written approval of the Commis-
sioner of Health (COH) before taking effect.

Section 2 sets an effective date.

 
JUSTIFICATION:

The proposed amendments to the Public Health Law represent a critical
step towards guaranteeing complete monitoring and responsibility in the
development and operation of hospitals. Currently, the law requires
consent from the Public Health and Health Planning Council (PHHPC)
before establishing or changing ownership of a hospital, ensuring a
thorough review of public need. However, there is a lack of monitoring
for corporate entities that exercise "passive" control over hospitals,
rather than directly engaging in day-to-day operational choices.

These "passive" corporate arrangements have increasingly played a role
in hospital mergers, networks, and affiliations, often resulting in the
reduction or elimination of vital healthcare services within communi-
ties. Without explicit inclusion in the establishment approval process,
these arrangements operate without the necessary scrutiny regarding
their impact on public health.

By clarifying the definitions of operational authority over a hospital
to encompass "passive" control corporate models, this bill seeks to
address this regulatory gap. Under the proposed revisions, entities
exercising such control would be required to get PHHPC establishment
permission. This ensures that all arrangements influencing hospital
operations, whether direct or indirect, are thoroughly reviewed to
protect the provision of healthcare services in communities.

Furthermore, by subjecting these arrangements to institution approval,
the measure fosters transparency and accountability in healthcare gover-
nance. It connects regulatory monitoring with the changing landscape of
hospital ownership and management structures, instilling greater trust
in the integrity of healthcare delivery systems.

In essence, the amendments proposed in this bill uphold the fundamental
principle that access to quality healthcare is a cornerstone of public
welfare. By extending establishment approval requirements to include
"passive" control corporate models, the legislation reinforces the
commitment to protect and promote the health and well-being of all indi-
viduals and communities across the state.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8987 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8987
 
                             I N  S E N A T E
 
                               April 8, 2024
                                ___________
 
 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:
   (I) APPOINTMENT OR DISMISSAL OF A HOSPITAL'S MANAGEMENT-LEVEL  EMPLOY-
 EES OR MEDICAL STAFF;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09072-01-3

 S. 8987                             2
 
   (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.

co-Sponsors

2023-S8987A (ACTIVE) - Details

See Assembly Version of this Bill:: A5375
Current Committee:: Assembly Health
Law Section:: Public Health Law
Laws Affected:: Amd §2801-a, Pub Health L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A877
2011-2012: A660
2013-2014: A5341
2015-2016: A841
2017-2018: A2441
2019-2020: A1147
2021-2022: A190

2023-S8987A (ACTIVE) - Summary

2023-S8987A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8987A

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, in relation to hospital estab-
lishment

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure that individuals or entities with decision-making power
regarding the operation of a hospital are subject to approval for estab-
lishment by the Public Health and Health Planning Council.  Outlines
detailed criteria and exceptions for such approval, emphasizing the
importance of regulatory oversight in maintaining the quality and integ-
rity of health care facilities.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 1 of section 2801-a of the public health
law as it relates to the establishment of incorporation of hospitals, to
include new subdivisions new (b), (c), and (d). It would specify that a

person, partnership, company, stockholder, member, corporation or other
entity would be deemed to have authority to operate a hospital if they
have or share the decision-making authority over any of the following
items listed in new subdivision (c). Requires such person or entity to
obtain establishment approval by the Public Health and Health Planning
Council and outlines that any assignment or delegation of operational
authority is subject to establishment approval, except for an assignment
or delegation to a committee, corporate officer, or an employee of the
hospital or a management contract for day-to-day operations of a hospi-
tal and such contract would require the written approval of the Commis-
sioner of Health (COH) before taking effect.

Section 2 sets an effective date.

 
JUSTIFICATION:

The proposed amendments to the Public Health Law represent a critical
step towards guaranteeing complete monitoring and responsibility in the
development and operation of hospitals. Currently, the law requires
consent from the Public Health and Health Planning Council (PHHPC)
before establishing or changing ownership of a hospital, ensuring a
thorough review of public need. However, there is a lack of monitoring
for corporate entities that exercise "passive" control over hospitals,
rather than directly engaging in day-to-day operational choices.

These "passive" corporate arrangements have increasingly played a role
in hospital mergers, networks, and affiliations, often resulting in the
reduction or elimination of vital healthcare services within communi-
ties. Without explicit inclusion in the establishment approval process,
these arrangements operate without the necessary scrutiny regarding
their impact on public health.

By clarifying the definitions of operational authority over a hospital
to encompass "passive" control corporate models, this bill seeks to
address this regulatory gap. Under the proposed revisions, entities
exercising such control would be required to get PHHPC establishment
permission. This ensures that all arrangements influencing hospital
operations, whether direct or indirect, are thoroughly reviewed to
protect the provision of healthcare services in communities.

Furthermore, by subjecting these arrangements to institution approval,
the measure fosters transparency and accountability in healthcare gover-
nance. It connects regulatory monitoring with the changing landscape of
hospital ownership and management structures, instilling greater trust
in the integrity of healthcare delivery systems.

In essence, the amendments proposed in this bill uphold the fundamental
principle that access to quality healthcare is a cornerstone of public
welfare. By extending establishment approval requirements to include
"passive" control corporate models, the legislation reinforces the
commitment to protect and promote the health and well-being of all indi-
viduals and communities across the state.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately but only applies prospective to
new submissions to PHHPC.

2023-S8987A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8987--A
     Cal. No. 999
 
                             I N  S E N A T E
 
                               April 8, 2024
                                ___________
 
 Introduced  by Sens. RIVERA, WEBB -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Health  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, amended and ordered  reprinted,  retaining
   its place in 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,
 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.
                                                            LBD09072-02-4
 S. 8987--A                          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.

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Senate Bill S8987

Share this bill

Sponsored By

Gustavo Rivera

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Lea Webb

2023-S8987 - Details

2023-S8987 - Summary

2023-S8987 - Sponsor Memo

2023-S8987 - Bill Text download pdf

co-Sponsors

Lea Webb

2023-S8987A (ACTIVE) - Details

2023-S8987A (ACTIVE) - Summary

2023-S8987A (ACTIVE) - Sponsor Memo

2023-S8987A (ACTIVE) - Bill Text download pdf

Comments