Florida Senate - 2006                        SENATOR AMENDMENT
    Bill No. CS for SB 1190
                        Barcode 872144
                            CHAMBER ACTION
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 3         Floor: 2/AD/2R          .                    
       04/28/2006 03:13 PM         .                    
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11  Senator Atwater moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 5, line 13, delete that line
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16  and insert:  
17         Section 2.  The Legislature finds that it is necessary
18  to clarify that a public agency may sell its interest in a
19  public hospital to a private corporation or other private
20  entity and to establish that such a sale results in the
21  privatization of the hospital enterprise. The Legislature
22  finds that the sale of a hospital by a public agency to a
23  private corporation or other private entity purchaser under
24  this section is a complete sale when: the public agency
25  retains no ownership interest in the hospital enterprise or
26  the hospital facility, regardless of who owns the underlying
27  property; the private corporation or other private entity has
28  the complete responsibility for operation and maintenance of
29  the hospital facility; the private corporation or other
30  private entity receives no funds from the public agency seller
31  other than by contract for services provided to patients for
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    8:47 AM   04/27/06                             s1190c1c-25-bz1

Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for SB 1190 Barcode 872144 1 whom the public agency has responsibility to pay for medical 2 or hospital services; the public agency makes no substantial 3 investment or loan to the private corporation or other private 4 entity; the private corporation or other private entity is not 5 created by the public agency; and the private corporation or 6 other private entity operates primarily for its own financial 7 interests as opposed to those of the public agency. The 8 Legislature further finds that a complete sale of the hospital 9 under such circumstances eliminates any argument that the 10 private corporation or other private entity continues to 11 perform any governmental or public function; that the public 12 agency retains any financial interest in the private purchaser 13 or the hospital; that the private purchaser is an integral 14 part in the public agency's decisionmaking process or that the 15 private entity is an "agency" or is "acting on behalf of a 16 public agency" as those terms are used in statute. The 17 Legislature further finds that the recognition of such sales 18 as being complete sales of the formerly public hospital to a 19 private corporation or other private entity is a public 20 necessity so that private entities that purchase public 21 hospitals are allowed to operate without unnecessary public 22 interference. Some recent court decisions, however, have found 23 that a private corporation or other private entity that 24 purchases a public hospital is still a public agency for some 25 purposes and have failed to recognize that the public agency 26 does not retain any control over the private entity or the 27 formerly public hospital following the complete sale of a 28 public hospital to a private corporation or other private 29 entity. Therefore, the Legislature finds that it is a 30 necessity to confirm its intent that a private corporation or 31 other private entity that purchases a formerly public hospital 2 8:47 AM 04/27/06 s1190c1c-25-bz1
Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for SB 1190 Barcode 872144 1 through a complete sale is not a public agency for any 2 purpose. To find otherwise would place such a private 3 corporation or other private entity that purchases a public 4 hospital at a competitive disadvantage compared to other 5 private entities that own private hospitals that were not 6 formerly public hospitals and would serve as a disincentive 7 for the purchase of a public hospital. Public agencies choose 8 to sell their public hospitals to private corporations or 9 other private entities when the public entity is no longer 10 able to operate the hospital in a fiscally responsible manner 11 and when taxpayers would otherwise be required to finance the 12 operations of the hospital beyond indigent care. If a private 13 corporation or other private entity that purchases a public 14 hospital is treated as a public agency, then public agencies 15 may find it difficult, if not impossible, to find a private 16 corporation or other private entity that is willing to 17 purchase a public hospital. This could force the public agency 18 to close the hospital, which would result in a reduction in 19 health care services to the public, or continue operating the 20 hospital using public tax dollars to subsidize recurring 21 losses. Neither of these options is in the best interest of 22 the public. Thus, the Legislature finds that a private 23 corporation or other private entity that purchases a public 24 hospital and the purchase agreement for that hospital meets 25 the requirements established herein, regardless of whether the 26 corporation had previously leased that public hospital, that 27 private corporation or other private entity is not a public 28 agency for any purpose and does not act on behalf of the 29 public agency. 30 Section 3. This act shall take effect upon becoming a 31 law and shall apply to each private corporation or other 3 8:47 AM 04/27/06 s1190c1c-25-bz1
Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for SB 1190 Barcode 872144 1 private entity that has purchased a public hospital regardless 2 of whether such purchase occurred prior to the effective date 3 of this act. 4 5 6 ================ T I T L E A M E N D M E N T =============== 7 And the title is amended as follows: 8 On page 1, line 11, following the semicolon 9 10 insert: 11 providing legislative findings and intent with 12 respect to the effect of the sale of a public 13 hospital to a private purchaser; providing 14 applicability, including retroactive 15 applicability; 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4 8:47 AM 04/27/06 s1190c1c-25-bz1