AN ACT CONCERNING REPORTING BY FOR-PROFIT HOSPITALS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 19a-644 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) On or before February twenty-eighth annually, for the fiscal year ending on September thirtieth of the immediately preceding year, each short-term acute care general or children's hospital shall report to the office with respect to its operations in such fiscal year, in such form as the office may by regulation require. Such report shall include: (1) Salaries and fringe benefits for the ten highest paid positions; (2) the name of each joint venture, partnership, subsidiary and corporation related to the hospital; and (3) the salaries paid to hospital employees by each such joint venture, partnership, subsidiary and related corporation and by the hospital to the employees of related corporations.

(b) The Department of Public Health shall adopt regulations in accordance with chapter 54 to provide for the collection of data and information in addition to the annual report required in subsection (a) of this section. Such regulations shall provide for the submission of information about the operations of the following entities: Persons or parent corporations that own or control the health care facility, institution or provider; corporations, including limited liability corporations, in which the health care facility, institution, provider, its parent, any type of affiliate or any combination thereof, owns more than an aggregate of fifty per cent of the stock or, in the case of nonstock corporations, is the sole member; and any partnerships in which the person, health care facility, institution, provider, its parent or an affiliate or any combination thereof, or any combination of health care providers or related persons, owns a greater than fifty per cent interest. For purposes of this section, "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. 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.

(c) Each nonprofit short-term acute care general or children's hospital shall include in the annual report required pursuant to subsection (a) of this section a report of all transfers of assets, transfers of operations or changes of control involving its clinical or nonclinical services or functions from such hospital to a person or entity organized or operated for profit.

(d) Each for-profit short-term acute care general or children's hospital shall include in the annual report required pursuant to subsection (a) of this section: (1) A description of any office maintained outside the United States by an officer or management employee of such hospital; (2) identification of any agent or employee of an officer or management employee of such hospital who provides services to such hospital and resides outside the United States; (3) a description of any financial transaction of more than five thousand dollars involving such hospital that has been transacted outside the United States; (4) a description of any management company paid by such hospital to provide services, including the name and address of such company, a description of the services provided to such hospital, information concerning any stock held in the management company by an officer, director, management employee or physician of such hospital; (5) a list of properties for which such hospital has claimed a tax abatement; (6) a description of any planned project to substantially expand such hospital or to construct a new facility, including the proposed location for such project, the timeline for completion of such project and the estimated cost and source of funding for such project; and (7) the amount of such hospital's surplus revenue, if any, that has been used for debt retirement, a facility expansion project or as a reserve for operating costs.

[(d)] (e) The office shall require each hospital licensed by the Department of Public Health, that is not subject to the provisions of subsection (a) of this section, to report to said office on its operations in the preceding fiscal year by filing copies of the hospital's audited financial statements. Such report shall be due at the office on or before the close of business on the last business day of the fifth month following the month in which a hospital's fiscal year ends.

Statement of Purpose:

To require for-profit hospitals to report certain information to the Office of Health Care Access.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]