Connecticut Seal

General Assembly

Amendment

 

February Session, 2014

LCO No. 5240

   
 

*SB0003505240SDO*

Offered by:

 

SEN. LOONEY, 11th Dist.

SEN. GERRATANA, 6th 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 Section 33-182aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in this chapter:

(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 another person. A person is deemed controlled by another person if the other person, or one of that other person's affiliates, officers, agents or management employees, acts as a general partner or manager of the person in question.

(2) "Certificate of incorporation" means a certificate of incorporation, as defined in section 33-1002, or any predecessor statute thereto;

[(2)] (3) "Hospital" means a nonstock corporation organized under chapter 602, or any predecessor statute thereto, or by special act and licensed as a hospital pursuant to chapter 368v;

[(3)] (4) "Health system" means a nonstock corporation organized under chapter 602, or any predecessor statute thereto, consisting of a parent corporation of one or more hospitals licensed pursuant to chapter 368v, and affiliated through governance, membership or some other means;

[(4)] (5) "Medical school" means a school of allopathic medicine leading to the M. D. degree, accredited by the Liaison Committee on Medical Education, and affiliated through governance with or part of a university that is either incorporated in this state or established pursuant to any provision of the general statutes and accredited by the New England Association of Schools and Colleges Commission on Institutions of Higher Education; and

[(5)] (6) "Provider" means a physician licensed under chapter 370, a chiropractor licensed under chapter 372, an optometrist licensed under chapter 380 or a podiatrist licensed under chapter 375.

Sec. 502. Subsection (a) of section 33-182bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Any hospital, 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. Employees of a medical foundation organized by a nonprofit hospital, nonprofit health system or nonprofit medical school shall be employed, directly or indirectly, only by nonprofit entities. 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] a greater number of employee providers than such other directors as may be elected by the members. The authority to appoint or elect board members shall not be granted to any person or entity that is not a member of the medical foundation.

(2) Notwithstanding the provisions of this subsection: (A) A for-profit entity or any entity related to or affiliated with a for-profit entity shall not be a member or be represented on the board of directors of a medical foundation organized by a nonprofit hospital, nonprofit health system or nonprofit medical school; (B) to the extent a for-profit entity is otherwise authorized to organize a medical foundation, a nonprofit hospital, nonprofit health system, nonprofit medical school or an entity related to, or affiliated with, a nonprofit hospital, nonprofit health system or nonprofit medical school shall not be a member or be represented on the board of directors of a medical foundation organized by a for-profit entity; and (C) no person shall be a member of a board of directors for a nonprofit medical foundation organized by a for-profit entity and, at the same time, a member of a board of directors for a medical foundation organized by a nonprofit hospital, nonprofit health system or nonprofit medical school.

Sec. 503. Section 33-182dd of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) 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.

(b) No medical foundation organized by a nonprofit hospital, nonprofit health system or nonprofit medical school may be affiliated with, partners with, a party to a joint venture with, or otherwise enter into a business relationship with, a medical foundation organized by a for-profit entity, a for-profit health system, a for-profit hospital or any entity that owns, controls or is affiliated with such a for-profit entity."

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

Sec. 501

from passage

33-182aa

Sec. 502

from passage

33-182bb(a)

Sec. 503

from passage

33-182dd