Hospital Acquisition: Haw. Rev. Stat. § 323D-71 et seq.
Current Status: Effective since 1998.
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Key Takeaways
- Requires parties to apply for approval from the Hawaii State Health Planning and Development Agency (“HI Agency”) and provide notice to the Hawaii Attorney General (“HI AG”) for transactions involving the acquisition of a Hawaii-regulated hospital.
- The parties must provide 90 days notice before closing to the HI AG.
Applies only to Hawaii-regulated hospitals, and specifically excludes public health facilities.
Parties must provide notice of transactions involving the “acquisition” of a hospital.
“Acquisition” is defined to include any ownership or controlling interest in a hospital that results in a change of ownership or control of 20% or greater or which results in the acquiring person holding a 50% or greater interest in the ownership or control of that hospital.
There are no specific revenue thresholds required under the statute.
Parties must notify the attorney general at least 90 days before closing.
Within 20 days of receiving a completed notification, the HI AG shall determine whether a further review is warranted.
There is no statutory language providing for any extension beyond the 90 day period.
Parties must submit a limited set of information to the HI AG, including:
- A brief description of the acquisition, including any change in ownership of assets;
- Party names;
- The terms of the proposed agreement and the sale price;
- A copy of the acquisition agreement;
- A financial and economic analysis and report from an independent expert or consultant regarding the effect of the acquisition; and
- All other related documents.
The application and notice provided to the HI AG are kept confidential.
Within 5 days after receipt of a complete application, the HI Agency must provide public notice of the application stating that the application has been received, the names of the parties to the agreement, a description of the contents of the application, and the date by which the public may submit any comments about the transaction to the HI Agency.
There are no enumerated penalties included in the statute.
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