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Rep Pat Dillon Hospital Conversion CT Hse Trnscrpt May 22 1997

Rep Pat Dillon Hospital Conversion CT Hse Trnscrpt May 22 1997

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Published by Patricia Dillon
CT House of Representatives Transcript Hb 5645 May 22, 1997
On page 34, Calendar 487, Substitute for House
Bill Number 5645, AN ACT REQUIRING ADVANCE REVIEW AND
APPROVAL OF THE SALE OF NON-PROFIT HEALTH CARE
FACILITIES TO FOR-PROFIT ENTITIES. Favorable Report of
the Committee on Insurance.
NYT June 1 1997
http://www.nytimes.com/1997/06/01/nyregion/curbs-backed-on-sale-of-hospitals.html
CT House of Representatives Transcript Hb 5645 May 22, 1997
On page 34, Calendar 487, Substitute for House
Bill Number 5645, AN ACT REQUIRING ADVANCE REVIEW AND
APPROVAL OF THE SALE OF NON-PROFIT HEALTH CARE
FACILITIES TO FOR-PROFIT ENTITIES. Favorable Report of
the Committee on Insurance.
NYT June 1 1997
http://www.nytimes.com/1997/06/01/nyregion/curbs-backed-on-sale-of-hospitals.html

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Published by: Patricia Dillon on Mar 19, 2014
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3/19/2014 (Search2)http://search.cga.state.ct.us/adv/ 1/7
CLERK: On page 34, Calendar 487, Substitute for HouseBill Number 5645, AN ACT REQUIRING ADVANCE REVIEW ANDAPPROVAL OF THE SALE OF NON-PROFIT HEALTH CAREFACILITIES TO FOR-PROFIT ENTITIES. Favorable Report ofthe Committee on Insurance.DEPUTY SPEAKER HYSLOP: Representative Dillon.REP. DILLON: (92ND) Thank you, Mr. Speaker. I move the JointCommittee's Favorable Report and passage of the bill.DEPUTY SPEAKER HYSLOP: The question is on acceptance and passage. Willyou remark?REP. DILLON: (92ND) The Clerk has in his possession amendment LCONumber 9506.DEPUTY SPEAKER HYSLOP: Clerk, please call LCO 9506 designated House "A".REP. DILLON: (92ND) Request permission to summarize.CLERK: LCO Number 9506, House "A" offered byRepresentative Dillon.DEPUTY SPEAKER HYSLOP: The Representative has asked leave to summarize.Seeing no objection, proceed. Hold on. RepresentativeFlaherty, for what reason do you rise?REP. FLAHERTY: (68TH) Mr. Speaker, I would just rise to object tosummarization. It would be nice, this doesn't seem tobe a strike everything amendment. We are beginning thecustom of at least hearing a little bit about the billbefore we barge right into an amendment. I would hopethat we could have that as well and having said that,Mr. Speaker, I think it would be important for thewhole Chamber. I would withdraw my objection tosummarization.DEPUTY SPEAKER HYSLOP: Thank you. Representative Dillon.REP. DILLON: (92ND) Thank you, Mr. Speaker. And thank you very muchfor the point made by the leader on the other side ofthe aisle. It is a point very well taken. This legislation sets in statute a standard forthe protection of charitable assets in the event of anacquisition of a non-profit hospital. It's an issuethat's come up and been volatile in many states. It'sa very prudent measure and attempts to strike areasonable balance in putting -- making quite clearwhat standards the Attorney General would be followingin the event of the acquisition of a hospital. Given the remarks made by Representative Flaherty,I am assuming that the amendment is before us, however.Yes? So may I direct my --DEPUTY SPEAKER HYSLOP:
 
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 The amendment is before us.REP. DILLON: (92ND) Yes. So may I direct my remarks to the amendment?DEPUTY SPEAKER HYSLOP: Would you move passage?REP. DILLON: (92ND) Thank you.DEPUTY SPEAKER HYSLOP: Would you move passage of the amendment?REP. DILLON: (92ND) I will move passage of the amendment.DEPUTY SPEAKER HYSLOP: Adoption of the amendment.REP. DILLON: (92ND) Thank you.DEPUTY SPEAKER HYSLOP: The question is on adoption. Will you remarkfurther?REP. DILLON: (92ND) The amendment makes a number of technical changesand clarifies the definitions in the file copy. Itcross references in our existing statutes the meaningof the word "control" for example. It removes thereference from the file copy which is broader inConnecticut statute than in the state that weoriginally looked at which was the State of Nebraska.It makes very clear that there is a 120 day clock sothat there is a clear standard and a clear time framethat has to be followed. I move adoption of the amendment.DEPUTY SPEAKER HYSLOP: The question is on adoption of House "A". Willyou remark on House "A"? Representative Powers.REP. POWERS: (151ST) Thank you, Mr. Speaker. A few questions throughyou to the proponent of the amendment.DEPUTY SPEAKER HYSLOP: Please frame your question.REP. POWERS: (151ST) Thank you, Mr. Speaker. In this process in thisamendment we are moving more jurisdiction to theAttorney General. Through you, Mr. Speaker.DEPUTY SPEAKER HYSLOP: Representative Dillon.REP. DILLON: (92ND) Through you, Mr. Speaker. The Attorney Generalhas, under statute and common law, broad powers overcharitable assets. This clarifies exactly how thisplays out and attempts to plug up an existing exposurein statutes. Through you, Mr. Speaker.DEPUTY SPEAKER HYSLOP: Representative Powers.REP. POWERS: (151ST) Thank you, Mr. Speaker. And through you again,Mr. Speaker, so the Attorney General would be dealingwith the assets. OCCA still deals with the CON processand when there is a transfer of assets the new entity
 
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must still go through the CON process through OCCA.Through you, Mr. Speaker.DEPUTY SPEAKER HYSLOP: Representative Dillon.REP. DILLON: (92ND) Through you, Mr. Speaker. Representative McDonaldhas requested that I yield to her. She is wavinghere. If you could. Could you direct that question toRepresentative McDonald?REP. POWERS: (151ST) Mr. Speaker, I would be happy to direct thequestion to Representative McDonald.DEPUTY SPEAKER HYSLOP: Representative McDonald.REP. MCDONALD: (148TH) Yes. Through you, Mr. Speaker. Only when ahospital is going to look at something over $1 millionwould it go to OCCA. There are ways for a profitmaking hospital to take over a non-profit withoutexpending $1 million. They can take over the board ofdirectors of that and a lot of the employees, theexecutives of the hospital soon become very, very highpaid employees of the for-profit hospital. So unlessyou reach a threshold of $1 million in can happen andit has happened in quite a few states. Through you, Mr. Speaker.DEPUTY SPEAKER HYSLOP: Representative Powers.REP. POWERS: (151ST) Thank you. A further clarification through you toRepresentative McDonald, if I could.DEPUTY SPEAKER HYSLOP: Proceed.REP. POWERS: (151ST) We are trying to, for legislative intent, toestablish where the lines are drawn in this amendment.When you change the assets when the for-profit comes inand purchases a non-profit hospital in the State ofConnecticut, under our current CON rules andregulations, the CON will not be issued to anythingother than a non-profit hospital. How is that affectedby this amendment? Through you, Mr. Speaker.DEPUTY SPEAKER HYSLOP: Representative McDonald.REP. MCDONALD: (148TH) Through you, Mr. Speaker. That's not true. Theywould only be a non-profit going to a non-profit. It'snot true. They could turn over to a profit makinghospital. Through you, Mr. Speaker.DEPUTY SPEAKER HYSLOP: Representative Powers.REP. POWERS: (151ST) Thank you. Through you, Mr. Speaker. That is notthe way it was researched by our legal staff so I guesswe will have a question mark on that. What, throughyou, Mr. Speaker, what for-profit hospital exists inthe State of Connecticut with the CON from the State of

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