SB 16 (see companion bill HB 737) – North CarolinaStatus: In Process
Year Introduced: 2023
Preserving Competition in Health Care Act. Requires hospital entities subject to the Article to provide the AG with written notice of a proposed transaction and certification that a copy of the Article has been provided to each member of the governing board or board of trustees of the hospital entity. Allows for a single written notice to suffice for both the hospital entity and acquiring entity, subject to the AG requesting more information as needed. Provides for the effect of the notice and directs the AG to adopt rules regarding required content and manner of the written notice. Requires the AG to provide the hospital entity and acquiring entity with written acknowledgement of receipt of the written notice, at which time a 90-day review period begins within which the AG must notify the hospital entity in writing of its decision to either object to or take no action regarding the proposed transaction. Provides for the AG to extend the review period for up to 60 days. Prohibits the parties consummating the transaction during the review period. Lists eight considerations the AG must address in making a determination about the proposed transaction, including whether the proposed transaction is in the public interest and whether there is an objection by a local governing body. Includes an additional eight considerations the AG must address in making a determination about a proposed transaction that would alter the control or governance of a nonprofit or publicly owned hospital entity, including whether the proposed transaction would result in private inurement to any person. Finally, requires the AG to consider whether the transaction complies with Article 2 of the Chapter for those that involve a hospital owned by a municipality or a hospital authority.
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