2005 Rhode Island Code - § 23-17.14-19 — Limits to acquisitions – Community benefits requirements – Filings prohibited.

    (a) In effectuating the purposes of this chapter to evaluate, review and monitor the new phenomenon of for-profit corporations gaining an interest in hospitals and the resulting impact on the delivery of healthcare in the state, limitations on for-profit corporations involved in hospital conversions are necessary.

   (b) No for-profit corporation, or its subsidiaries or affiliates, which applies for and receives approval of a conversion of a hospital in accordance with the provisions of this chapter shall be permitted to apply for approval of a conversion of a second hospital in this state for a period of at least three (3) years after the initial conversion is finalized and implemented. This subsection shall not be deemed to prohibit a for-profit corporation, together with its subsidiaries and affiliates, from applying for or receiving approval of a conversion of two (2) affiliated hospitals in this state provided that: (1) one of the two (2) hospital licenses involved in the conversion was issued prior to July 22, 1997; and (2) this license involves a specialty rehabilitation hospital that has a maximum of ninety (90) beds. A conversion undertaken pursuant to this provision shall be considered one conversion and a for-profit corporation which receives approval for the conversion shall be subject to the three (3) year period between the finalization and implementation of a first conversion and the application for a second conversion as set forth in this subsection.

   (c) In the event that a for-profit corporation applies to hold, own, or acquire an ownership or controlling interest greater than twenty percent (20%) in more than one hospital one year subsequent to the finalization and implementation of a prior license, all provisions of this chapter must be met and, in addition to the review process and criteria set forth in this chapter, the department shall have the sole authority and discretion to determine:

   (1) Whether the for-profit corporation provided community benefits as required or promised in connection with obtaining and holding a license or interest therein during the previous license period;

   (2) Whether all terms and conditions of the prior license have been met;

   (3) Whether all federal, state and local laws, ordinances and regulations have been complied with relative to any prior license;

   (4) Whether the for-profit corporation planned, implemented, monitored and reviewed a community benefit program during the prior license period;

   (5) Whether the for-profit corporation maintained, enhanced or disrupted the essential medical services in the affected community or the state;

   (6) Whether the for-profit corporation provided an appropriate amount of charity care necessary to maintain or enhance a safe and accessible healthcare delivery system in the affected community and the state; and

   (7) Whether the for-profit corporation demonstrated a substantial linkage between the hospital and the affected community by providing one or more of the following benefits; uncompensated care, charity care, cash or in kind donations to community programs, education and training of professionals in community health issues, relevant research initiatives or essential but unprofitable medical services if needed in the affected community.

   (d) The director may hold a public hearing to solicit input to assess the performance of a for-profit corporation or its affiliates or subsidiaries in providing community benefits in the affected community or the state.

   (e) The director shall have the sole authority to deny a for-profit corporation, its affiliates or subsidiaries, or successors, permission for one or more than one license and, for good cause, may prohibit a for-profit corporation or its affiliates or subsidiaries from filing an application pursuant to this chapter for a period not to exceed ten (10) years.