SB365: Bill Text

SB365,5,11 d. The date by which a person may submit written comments about the hospital acquisition review application to the attorney general.

SB365,5,15 e. That a public meeting will be held on the acquisition proposed by the application, the time and location of the meeting and the fact that any person may file written comments or exhibits for the meeting or may appear and make a statement at the meeting.

SB365,5,23 (d) Not later than 30 days after receipt of a completed application under sub. (2) (a), or as soon as practicable but not more than 120 days after receipt of a completed application under sub. (2) (b), and after giving 10 working days' notice, the attorney general shall hold a public meeting at a location that, at a minimum, is in the community served by the hospital, on the acquisition proposed by the application. If the proposed acquisition is for a system of hospitals, a public meeting shall be held in each community served by the system. Any person may file written comments or exhibits for the meeting or may appear and make a statement at the meeting.

SB365,6,4 (e) The attorney general shall establish and maintain a summary of written and oral comments made for or at the public meeting, including all questions posed, and shall require answers of the appropriate parties. The summary and answers shall be filed in the office of the attorney general and in the public library of the public library system for the community served by the hospital and a copy shall be available upon request to the attorney general.

SB365,6,8 (f) The attorney general may subpoena additional information or witnesses, require and administer oaths, require sworn statements, take depositions and use related discovery procedures for purposes of the meeting under par. (d) and otherwise during performance of a review under this subsection.

SB365,6,14 (g) Within 60 days after receipt of a completed application under sub. (2) (a) or as soon as practicable but not more than 150 days after receipt of a completed application under sub. (2) (b), the attorney general shall review the application in accordance with the standards specified in sub. (4) and shall approve or disapprove the application. The attorney general may not make its decision based on any condition that is not directly related to the standards under sub. (4).

SB365,6,17 (h) If the attorney general disapproves an application under par. (g), any of the following may bring an action in circuit court for a declaratory judgment under s. 806.04 as to whether the proposed acquisition meets the standards under sub. (4):

SB365,6,18 1. The applicant.

SB365,6,22 2. Any person who submitted comments under par. (d) and who has a legal interest in a hospital for which acquisition is proposed or in another hospital that has contracted for the provision of essential health services with the hospital for which acquisition is proposed.

SB365,6,25 (4) Application review by the attorney general; standards. The attorney general shall approve an application if he or she finds that the following standards are met:

SB365,7,2 (a) That the acquisition is permitted under ch. 181 or any other statute that governs nonprofit entities.

SB365,7,5 (b) That the hospital exercised due diligence in deciding to sell or lease, selecting the purchaser or lessee and negotiating the terms and conditions of the sale or lease.

SB365,7,10 (c) That the procedure used by the seller or lessor in making its decision to sell or lease was adequate, including whether the seller or lessor used appropriate expert assistance. The attorney general may employ, at the purchaser's or lessee's expense, reasonably necessary expert assistance in considering evidence under this paragraph.

SB365,7,13 (d) That conflict of interest was disclosed, including conflicts of interest related to members of the board of directors of, executives of or experts retained by the seller or lessor, the purchaser or lessee or other parties to the acquisition.

SB365,7,15 (e) That charitable funds are not placed at unreasonable risk, if the acquisition is a sale that is financed in part by the seller.

SB365,7,17 (f) That any management contract under the acquisition is for reasonably fair value.

SB365,7,21 (g) That the sale or rental proceeds will be used for appropriate charitable health care purposes, including health promotion, in the community affected by the acquisition and that the proceeds will be controlled as charitable funds independently of the purchaser or parties to the acquisition.

SB365,7,25 (h) That, if the hospital is sold, a right of first refusal is retained to repurchase the assets by a successor nonprofit corporation, by the city, county or state or by the University of Wisconsin Hospitals and Clinics Authority if the hospital is subsequently sold to, acquired by or merged with another entity.

SB365,8,3 (5) Exemptions. The acquisition, by one of the following, of a hospital or system of hospitals owned by a nonprofit corporation is exempt from the application of this section:

SB365,8,4 (a) A state agency.

SB365,8,5 (b) A local agency.

SB365,8,6 (c) Another nonprofit corporation, to which all of the following apply:

SB365,8,8 1. The nonprofit corporation has a charitable health care purpose that is substantially similar to the corporation that owns the hospital or system of hospitals.

SB365,8,11 2. The nonprofit corporation is an organization described in section 501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code.

SB365,8,14 3. The nonprofit corporation maintains on the board of directors of the acquired hospital or system of hospitals representation from the community affected by the acquisition.

SB365,8,18 (6) Denial, suspension or revocation of certificate of approval. (a) No certificate of approval to maintain a hospital may be issued under s. 50.35 and a certificate of approval that has been issued under that section shall be suspended or revoked if any of the following occurs:

SB365,8,20 1. Acquisition of a hospital that is subject to sub. (2) is made without approval by the attorney general.

SB365,8,25 2. Acquisition of a hospital that is subject to sub. (2) is made after the attorney general has disapproved an application for the acquisition under sub. (4) and, if an action under s. 806.04 is brought, after a judicial determination is made under s. 806.04 that the proposed acquisition does not meet the standards specified in sub. (4) (a) to (h).

SB365,9,3 (b) If the attorney general is aware that a violation of par. (a) 1. or 2. has occurred, he or she shall notify the department of health and family services for appropriate action under s. 50.35.

SB365,9,7 (7) Attorney general; authority. Nothing in this section or in s. 50.35 limits the authority of the attorney general to act with respect to an acquisition, including the authority of the attorney general to act under 15 USC 26, ch. 133 or other state law.

SB365, s. 3 Section 3. Initial applicability.

SB365,9,10 (1) Acquisitions of hospitals. This act first applies to offers to purchase or lease hospitals that are made on the effective date of this subsection.

SB365,9,11 (End)