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).
STATE OF NEW YORK
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3366
2025-2026 Regular Sessions
IN SENATE
January 27, 2025
___________
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:
1 Section 1. Subdivision 1 of section 2801-a of the public health law,
2 as amended by section 57 of part A of chapter 58 of the laws of 2010, is
3 amended to read as follows:
4 1. (a) No hospital, as defined in this article, shall be established
5 except with the written approval of the public health and health plan-
6 ning council. No certificate of incorporation of a business membership
7 or not-for-profit corporation shall hereafter be filed which includes
8 among its corporate purposes or powers the establishment or operation of
9 any hospital, as defined in this article, or the solicitation of
10 contributions for any such purpose, or two or more of such purposes,
11 except with the written approval of the public health and health plan-
12 ning council, and when otherwise required by law of a justice of the
13 supreme court, endorsed on or annexed to the certificate of incorpo-
14 ration. No articles of organization of a limited liability company
15 established pursuant to the New York limited liability company law which
16 includes among its powers or purposes the establishment or operation of
17 any hospital as defined in this article, shall be filed with the depart-
18 ment of state except upon the approval of the public health and health
19 planning council.
20 (b) For the purposes of this subdivision, a person (other than a
21 person acting solely as a member of the governing body of a hospital or
22 an employee of a hospital), partnership, company, stockholder, member,
23 corporation or other entity shall be deemed to have authority to operate
24 a hospital if it has or shares decision-making authority over any of the
25 following:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07047-01-5
S. 3366 2
1 (i) appointment or dismissal of a hospital's management-level employ-
2 ees or medical staff;
3 (ii) election or removal of members of the governing board or corpo-
4 rate officers of the hospital;
5 (iii) approval of the hospital's operating or capital budgets;
6 (iv) adoption, approval or enforcement of the hospital's operating
7 policies or procedures;
8 (v) approval of applications for construction or establishment
9 approval filed by or on behalf of the hospital;
10 (vi) approval of hospital debt necessary to finance the cost of
11 compliance with operational or physical plant standards required by law;
12 (vii) approval of contracts for management of the hospital or for
13 clinical services at the hospital; and
14 (viii) approval of settlements of administrative proceedings or liti-
15 gation to which the hospital is party that exceed the hospital's insur-
16 ance coverage or coverage by any applicable self-insurance fund.
17 (c) Any person, partnership, company, stockholder, member, or corpo-
18 ration, or other entity with authority to operate a hospital shall be
19 subject to approval for establishment by the public health and health
20 planning council under this section, unless otherwise authorized by this
21 chapter to operate a hospital without such establishment approval.
22 (d) Any assignment or delegation of any authority to operate a hospi-
23 tal, as set forth in paragraph (b) of this subdivision shall be subject
24 to approval for establishment by the public health and health planning
25 council under this section, except for:
26 (i) assignment or delegation by the governing body of the hospital to
27 a committee of the governing body, a corporate officer or an employee of
28 the hospital; or
29 (ii) a management contract under which a governing body contracts with
30 an entity to manage day-to-day operations of a hospital or a portion or
31 service thereof, provided that such a management contract shall require
32 the written approval of the commissioner before it may take effect.
33 § 2. This act shall take effect immediately, provided, however, that
34 the provisions of this act shall only apply to applications submitted to
35 the public health and health planning council seeking approval for
36 establishment after the effective date of this act.
