2022 -- S 2610 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO HEALTH AND SAFETY -- THE HOSPITAL CONVERSION ACT

     Introduced By: Senators Ruggerio, McCaffrey, Goodwin, Miller, Pearson, Gallo, and
Coyne

     Date Introduced: March 10, 2022

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative findings

     (1) The strength of the state's overall hospital network is critical to the wellbeing of all

Rhode Islanders;

     (2) The for-profit hospital model's diverging interests due to its tax status can result in a

different approach to care and corporate governance;

     (3) Financial troubles at some hospitals may stem in part from their status as for-profit

institutions;

     (4) The ramifications of any potential closures are felt in health centers across the state,

potentially overtaxing their ability to provide necessary health services;

     (5) Rhode Island's hospitals presently bear a significant burden due to the COVID-19

pandemic, and this burden has resulted in the opening of two field hospitals and stretched the

capacities of health care workers;

     (6) It is essential that the General Assembly, Rhode Island Department of Health, and

Rhode Island Attorney General, and health care regulators thoroughly understand the for-profit

hospital model and its broader impact on our state's health care delivery system; and

     (7) A moratorium on approvals of any new for-profit hospitals or transfer of ownership

would grant the General Assembly and regulators the time necessary to conduct a comprehensive

review of for-profit hospital entities and their impact on the financial condition of the hospitals they

operate, other hospitals in the state, and the overall health care system.

     SECTION 2. Chapter 23-17.14 of the General Laws entitled "The Hospital Conversions

Act" is hereby amended by adding thereto the following section:

     23-17.14-36. Moratorium on conversions involving for-profit corporation as acquiree

or acquiror.

     There shall be a one year moratorium imposed on the conversion of any hospital governed

by this act if the acquiree or acquiror is a for-profit corporation.

     SECTION 3. This act shall take effect upon passage and shall expire one year from the

effective date.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- THE HOSPITAL CONVERSION ACT

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     This act would provide a one year moratorium on hospital conversions involving for-profit

corporations as acquiree or acquiror.

     This act would take effect upon passage and would expire one year from the effective date.

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