Connecticut Seal

General Assembly

Amendment

 

February Session, 2014

LCO No. 4477

   
 

*SB0003504477SDO*

Offered by:

 

SEN. LOONEY, 11th Dist.

SEN. FASANO, 34th Dist.

 

To: Subst. Senate Bill No. 35

File No. 419

Cal. No. 286

"AN ACT CONCERNING NOTICE OF ACQUISITIONS, JOINT VENTURES AND AFFILIATIONS OF GROUP MEDICAL PRACTICES. "

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. Section 33-182bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

(a) Any nonprofit hospital, nonprofit health system or medical school may organize and become a member of a medical foundation under the provisions of chapter 602 for the purpose of practicing medicine and providing health care services as a medical foundation through employees or agents of such medical foundation who are licensed pursuant to section 20-9 and through other providers. No entity other than a nonprofit hospital, nonprofit health system, medical school or other entity that organizes, consolidates or merges with a medical foundation pursuant to this chapter may be a member of a medical foundation. Such medical foundation shall be governed by a board of directors, which shall consist of an equal or greater number of providers than nonprovider employees of the members. [, in addition to such other directors as may be elected by the members. ]

(b) Any medical foundation organized on or after July 1, 2009, shall file a copy of its certificate of incorporation and any amendments to its certificate of incorporation with the Office of Health Care Access division of the Department of Public Health not later than ten business days after the medical foundation files such certificate of incorporation or amendment with the Secretary of the State pursuant to chapter 602.

(c) Any medical group clinic corporation formed under chapter 594 of the general statutes, revision of 1958, revised to 1995, which amends its certificate of incorporation pursuant to subsection (a) of section 33-182cc, shall file with the Office of Health Care Access division of the Department of Public Health a copy of its certificate of incorporation and any amendments to its certificate of incorporation, including any amendment to its certificate of incorporation that complies with the requirements of subsection (a) of section 33-182cc, not later than ten business days after the medical foundation files its certificate of incorporation or any amendments to its certificate of incorporation with the Secretary of the State.

(d) Any medical foundation, regardless of when organized, shall file notice with the Office of Health Care Access division of the Department of Public Health and the Secretary of the State of its liquidation, termination, dissolution or cessation of operations not later than ten business days after a vote by its board of directors or members to take such action. Not later than ten business days after receiving a written request from the office, a medical foundation shall provide the office with a statement of its mission and a description of the services it provides, and a description of any significant change in its services during the preceding year as reported on the medical foundation's most recently filed Internal Revenue Service return of organization exempt from income tax form, or any replacement form adopted by the Internal Revenue Service.

(e) A medical foundation shall not operate for profit and may operate at such locations as are designated by its members.

Sec. 502. Section 33-182dd of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014):

(a) For purposes of this section, (1) "affiliate" means any person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with any health care facility, institution, provider or person that is regulated in any way under this chapter, and (2) "controlled by" means a person, or a person's affiliates, officers, agents or management employees, acts as a general partner or manager of the person in question.

(b) No medical foundation organized under this chapter shall engage in any business other than the rendering of health care services for which it was specifically incorporated, except that nothing in this chapter or in any other provision of law applicable to corporations shall be interpreted to prohibit such medical foundation from investing its funds in real estate, mortgages, stocks, bonds or any other type of investments, or from owning real or personal property incident to the rendering of professional services.

(c) No medical foundation may be a member of, affiliated with, partners with, a party to a joint venture with, or otherwise enter into a business relationship with, a for-profit health system or a health system that includes a for-profit hospital.

(d) No medical foundation may be affiliated with, partners with, party to a joint venture with or otherwise enter into a business relationship with a for-profit hospital or other entity that owns, controls or is affiliated with a for-profit hospital."

This act shall take effect as follows and shall amend the following sections:

Sec. 501

October 1, 2014

33-182bb

Sec. 502

October 1, 2014

33-182dd