The Hospital Conversions Act: R.I. Gen. Laws § 23-17.14 et seq.
Current Status: Effective since 1997.
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Key Takeaways
- Parties must obtain approval from the Rhode Island Attorney General (“RI AG”) and Department of Health (“DOH”) for certain transactions involving Rhode Island hospitals.
- Under the statute, the RI AG and DOH may take over 180 days to approve such transactions before the parties are permitted to close.
Applies to hospitals licensed to operate in Rhode Island.
Parties must seek approval from the RI AG and DOH for any transaction involving the transfer of 20% or more of any ownership interests or assets of a hospital.
There are no specific revenue thresholds required under the statute.
Parties must provide notice of the transaction before closing a transaction to the RI AG and DOH. Within 30 days of receiving notice, the RI AG and DOH must either accept the filing, or request additional information. The parties have an additional 30 days, if necessary, to submit any additional information and address any deficiencies in the application. The RI AG and DOH then have 10 working days to determine if the application is sufficient.
A decision must be issued within 180 days of the acceptance of the application.
Parties must provide a broad set of information on the relevant hospitals in the notice, including:
- Organizational documents;
- Board minutes and documents; and
- Financial, operational, and employee records and patient statistics for the prior 3 years.
The RI AG and DOH are required to publish a notice of the filing in a newspaper of general circulation in the state, including:
- A statement that a filing has been received and accepted for review;
- The names of the parties;
- The date by which any person may submit written comments to the RI AG or DOH; and
- The date, time, and place of a public information meeting to be held within 60 days of the notice.
The RI AG can seek to revoke the relevant hospital’s license and assess fines of up to $2 million.
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