§ 16-21-15-9 — Authority over hospitals granted a certificate; deficiency notice; investigations

Indiana § 16-21-15-9

• Jurisdiction: Indiana
• Title 16: HEALTH
• Art. 21: HOSPITALS
• Ch. 15: Certificate of Public Advantage of Hospital Mergers

Text

(a) The state department may do any of the
following concerning a hospital that is issued a certificate of public
advantage under this chapter:
(1) Investigate the hospital's activities.
(2) Require the hospital to either take action or prohibit an action
in order to retain the hospital's certificate, including revocation of
a hospital's certificate of public advantage, if the state department
determines any of the following:
(A) The hospital is not complying with this chapter or with a
term or condition issued with the hospital's certificate.
(B) The state department's issuance of a hospital's certificate
was based on a material misrepresentation in the application.
(C) The hospital has failed to pay a fee authorized under this
chapter.
(D) The benefits determined in the issuance of the certificate no
longer outweigh the disadvantages attributable to the reduction
in competition resulting from the merger.
(b) If the state department determines that a hospital holding a
certificate of public advantage has a deficiency in violation of the
certificate, the state department shall issue a deficiency notice and
require the hospital to adopt a plan of correction concerning the
deficiency notice in order to maintain the certificate. A hospital issued
a deficiency notice by the state department shall adopt and implement
a plan of correction for each indicated deficiency.
(c) The office of the attorney general may issue a civil investigative
demand concerning the state department's review or revocation of an
issued certificate of public advantage and demand the attendance of
witnesses and the production of documents to investigate whether a
hospital that holds the certificate continues to meet the requirements of
the certificate set forth in this chapter. The office of the attorney
general may file an action with the district court of the county in which
the hospital is located for the revocation of a certificate issued under
this chapter. The attorney general has the burden of establishing by
clear and convincing evidence that a change in circumstances has
resulted in the public disadvantage in the reduction in competition from
the merger outweighs the benefits resulting from the merger.
(d) If the attorney general brings an action under this section and
proves by clear and convincing evidence that a certificate of public
advantage was obtained through a material misrepresentation to the
state department, the parties to the merger agreement bear the burden
of establishing by clear and convincing evidence that benefits of the
merger are not outweighed by the disadvantages attributable by a
reduction in competition as a result of the merger.

Legislative History

As added by P.L.104-2021, SEC.2.