2022 -- S 2610 SUBSTITUTE A | |
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LC004942/SUB 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 | |
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Introduced By: Senators Ruggerio, McCaffrey, Goodwin, Miller, Pearson, Gallo, and | |
Date Introduced: March 10, 2022 | |
Referred To: Senate Health & Human Services | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Legislative findings |
2 | (1) The strength of the state's overall hospital network is critical to the wellbeing of all |
3 | Rhode Islanders; |
4 | (2) The for-profit hospital model's diverging interests due to its tax status can result in a |
5 | different approach to care and corporate governance; |
6 | (3) Financial troubles at some hospitals may stem in part from their status as for-profit |
7 | institutions; |
8 | (4) The ramifications of any potential closures are felt in health centers across the state, |
9 | potentially overtaxing their ability to provide necessary health services; |
10 | (5) Rhode Island's hospitals presently bear a significant burden due to the COVID-19 |
11 | pandemic, and this burden has resulted in the opening of two field hospitals and stretched the |
12 | capacities of health care workers; |
13 | (6) It is essential that the General Assembly, Rhode Island Department of Health, and |
14 | Rhode Island Attorney General, and health care regulators thoroughly understand the for-profit |
15 | hospital model and its broader impact on our state's health care delivery system; and |
16 | (7) A moratorium on approvals of any new for-profit hospitals or transfer of ownership |
17 | would grant the General Assembly and regulators the time necessary to conduct a comprehensive |
18 | review of for-profit hospital entities and their impact on the financial condition of the hospitals they |
19 | operate, other hospitals in the state, and the overall health care system. |
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1 | SECTION 2. Chapter 23-17.14 of the General Laws entitled "The Hospital Conversions |
2 | Act" is hereby amended by adding thereto the following section: |
3 | 23-17.14-36. Moratorium on conversions involving for-profit corporation as acquiree |
4 | or acquiror. |
5 | There shall be a one year moratorium imposed on the conversion of any hospital governed |
6 | by this act if the acquiree or acquiror is a for-profit corporation. |
7 | SECTION 3. This act shall take effect upon passage and shall expire one year from the |
8 | 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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1 | This act would provide a one year moratorium on hospital conversions involving for-profit |
2 | corporations as acquiree or acquiror. |
3 | This act would take effect upon passage and would expire one year from the effective date. |
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