Delaware limits outside control of nonprofit acute care hospitals

A person or organization other than a charity or nonprofit may not take control of, or enter a conversion transaction involving, a nonprofit acute care hospital. A nonprofit acute care hospital includes a hospital that provides inpatient and emergency services, but excludes facilities that provide only psychiatric, rehabilitation, or long-term care services. A transaction that violates this rule is void and has no legal effect. Control is presumed in specified cases, including holding at least 25% of voting interests, having rights over hospital leaders, or having veto power over major decisions. The Attorney General may seek a court order to stop a violation and pursue other available remedies. This rule applies to transactions that had not closed before the Act's effective date. A transaction is closed when it is fully executed and effective.

A person or organization other than a charity or nonprofit may not apply for a state certificate to build or acquire an acute care hospital, and the review board may not act on such an application. The rule covers building, developing, establishing, or acquiring an acute care hospital. An application that violates this rule is void and has no legal effect. This rule expires July 1, 2028, unless the General Assembly ends it sooner or extends it.

A nonprofit healthcare entity must give written notice to the Attorney General at least 180 days before closing a conversion transaction involving an acute care hospital. This applies to a nonprofit healthcare entity planning a conversion transaction involving an acute care hospital. The entity must also send the notice to the Governor and the Secretary of the Department of Health and Social Services. The notice must be sent at least 180 days before the planned closing. This rule expires July 1, 2028, unless the General Assembly ends it sooner or extends it.