Legislation Pertaining to Not-For-Profit Health Facility Sales Being Heard in Assembly Health Committee

On March 28, legislation that would add additional reporting requirements for not-for-profit health facilities who wish to sell their facilities to for-profit corporations is being heard in the Assembly Health Committee.

Under existing law, not-for-profit health facilities who wish to sell their facilities to a for-profit corporation must provide notice to, and receive approval from the Attorney General’s Office before a sale can be complete. After the Attorney General’s Office receives notice, they have 60 days to either approve or reject the sale.

AB 651 (Muratsuchi, D-Torrance) would extend the timeframe for the Attorney General’s Office to make a decision from 60 days to 90 days. Furthermore, AB 651 would require a facility to amend the current notice to include a list of all of the languages “widely spoken” in the community of the proposed closure, and authorizes the Attorney General to require that the facility provide the notice in any of the languages widely spoken. Lastly, the legislation would allow the Attorney General’s office to consider “adverse impacts on significant cultural interests” when determining whether to approve or deny a transaction.

LeadingAge California is concerned that the language in this bill is overly broad, particularly when considering what languages are “widely spoken” in a community, as well as what is determined to be an “adverse impact on significant cultural interests” in a community.

We have been working diligently with the author’s office to seek clarity and specificity on the language, and will continue to update members on the status of this bill as it moves throughout the legislative process.