Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 1448
       
       
       
       
       
       
                                Barcode 605646                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  03/22/2011           .                                
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       The Committee on Health Regulation (Altman) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3  
    4         Delete lines 56 - 130
    5  and insert:
    6  
    7  (4)(b). Any sale or lease of a tax-supported hospital is subject
    8  to approval by the Attorney General. For the purposes of this
    9  section, the term “tax-supported hospital” means a county,
   10  district, or municipal hospital that has received ad valorem or
   11  other tax revenues directly from a county, district, or
   12  municipal taxing authority to support the hospital at any time
   13  within the 5 years prior to the effective date of any proposed
   14  lease or sale.
   15         (2) Any such lease, contract, or agreement made pursuant
   16  hereto shall:
   17         (a) Provide that the articles of incorporation of the such
   18  for-profit or not-for-profit corporation be subject to the
   19  approval of the board of directors or board of trustees of the
   20  such hospital;
   21         (b) Require that any not-for-profit corporation become
   22  qualified under s. 501(c)(3) of the United States Internal
   23  Revenue Code;
   24         (c) Provide for the orderly transition of the operation and
   25  management of the such facilities;
   26         (d) Provide for the return of the such facility to the
   27  county, municipality, or district upon the termination of the
   28  such lease, contract, or agreement; and
   29         (e) Provide for the continued treatment of indigent
   30  patients pursuant to the Florida Health Care Responsibility Act
   31  and pursuant to chapter 87-92, Laws of Florida.
   32         (3) Any sale, lease, or contract entered into pursuant to
   33  this section prior to the effective date of this act must have
   34  complied with the requirements of subsection (2) in effect at
   35  the time of the sale, lease, or contract. It is the intent of
   36  the Legislature that this section does not impose any further
   37  requirements with respect to the formation of any for-profit or
   38  not-for-profit Florida corporation, the composition of the board
   39  of directors of any Florida corporation, or the manner in which
   40  control of the hospital is transferred to the Florida
   41  corporation.
   42         (4) If In the event the governing board of a county,
   43  district, or municipal hospital determines it is no longer in
   44  the public interest to own or operate the hospital and elects to
   45  consider a sale or lease of the hospital, the board shall first
   46  determine whether there are any qualified purchasers or lessees
   47  of the hospital. In the process of evaluating any potential
   48  purchasers or lessees elects to sell or lease the hospital, the
   49  board shall:
   50         (a) Negotiate the terms of the sale or lease with a for
   51  profit or not-for-profit Florida corporation and Publicly
   52  advertise the meeting at which the proposed sale or lease will
   53  be considered by the governing board of the hospital in
   54  accordance with s. 286.0105; or
   55         (b) Publicly advertise the offer to accept proposals in
   56  accordance with s. 255.0525 and receive proposals from all
   57  interested and qualified purchasers.
   58  
   59  Any sale or lease must be for fair market value, and any sale or
   60  lease must comply with all applicable state and federal
   61  antitrust laws. As used in this section, the term “fair market
   62  value means the most likely price that the assets would bring
   63  in a sale or lease in a competitive and open market under all
   64  conditions requisite to a fair sale or lease, with the buyer or
   65  lessee, and seller or lessor, each acting prudently,
   66  knowledgeably, and in their own best interest, and with a
   67  reasonable time being allowed for exposure in the open market.
   68         (5)If the governing board decides to accept a proposal to
   69  purchase or lease the hospital, the board’s decision must be in
   70  writing and clearly state the facts and findings that support
   71  its decision to sell or lease the hospital. The facts and
   72  findings must include, but are not limited to, whether the
   73  proposal:
   74         (a) Represents the fair market value of the hospital;
   75         (b)Constitutes the best use of the hospital and its
   76  attendant facilities;
   77         (c)Will have a positive effect on the reduction or
   78  elimination of ad valorem or other tax revenues if any are used
   79  to support the hospital; and
   80         (d)Ensures that quality health care will continue to be
   81  provided to all residents of the affected community, and in
   82  particular the indigent, the uninsured, and the underinsured.
   83         (6) A governing board of a tax-supported hospital may not
   84  enter into any sale or lease of a hospital and its attendant
   85  facilities without first having received approval of the sale or
   86  lease from the Attorney General pursuant to this section.
   87  
   88  ================= T I T L E  A M E N D M E N T ================
   89  And the title is amended as follows:
   90  
   91         Delete lines 4 - 26
   92  and insert:
   93  
   94         sale or lease of a tax-supported hospital to a for
   95         profit or not-for-profit Florida corporation receive
   96         prior approval by the Attorney General; defining the
   97         term “tax-supported hospital;” requiring the governing
   98         board of a tax-supported hospital to first determine
   99         whether there are any qualified purchasers or lessees
  100         of the hospital before considering whether to sell or
  101         lease the hospital; defining the term “fair market
  102         value; requiring the governing board to put in
  103         writing the facts and findings to justify the
  104         governing board’s decision to sell or lease the public
  105         hospital to a third party; detailing the issues that
  106         the governing board must address in order to sell or
  107         lease the hospital; setting forth the procedures that
  108         must be followed by the governing board to gain the
  109         approval of the Attorney General to sell or lease a
  110         tax-supported hospital; authorizing the Attorney
  111         General to employ independent consultants to determine
  112         the fair market value of the proposed sale or lease of
  113         a tax-supported hospital; authorizing interested
  114         persons to file a statement in opposition to the sale
  115         or lease of the hospital; specifying the criteria the
  116         Attorney General must consider when deciding whether
  117         to approve or deny the proposed sale or lease of a
  118         tax-supported hospital; requiring the Attorney