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History
- Referred to health
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7354
Title of bill
An act to amend the public health law, in relation to authorizing the establishment of private equity hospitals
Purpose
Directs the commissioner of health to establish a demonstration program authorizing private capital investments and private equity interests in hospitals.
Summary of provisions
Section one amends §2801-a to require the commissioner of health to establish, on or before March 1, 2013, a program whereby the Department of Health (DOH) may accept applications for demonstration projects around the state to develop, evaluate and implement a flexible approach allowing private capital investments and private equity interests in hospitals. This section also sets forth criteria which applicants must demonstrate in order to be eligible for this program. All demonstrations approved by the commissioner must provide detailed annual reports.
Section two provides that this act shall take effect immediately.
Justification
Many health care facilities in New York State suffer from inadequate investment for capital improvements, upgrades and expansion. Private equity is a source of such fund in many sectors, but in New York's health care sector, such investing is limited. By statute ownership is limited to individuals who are subject to character and competence reviews. This bill provides, on a demonstration basis, the ability for a limited liability corporation to provide an invest and hold an equity interest in a hospital. This would not be the first venture into private ownership of health care facilities for New York. Several years ago certain diagnostic and treatment centers, which provide dialysis services, were granted an exception due to the severe shortage of service providers. That exemption has proven successful in assuring access to quality services. The instant legislation is designed to build on that success and proving similarly needing capital to hospitals.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.