§ 23-17.14-4. Definitions.
For purposes of this chapter:
(1) "Acquiree� means the person or persons that lose(s) any ownership or control in the
new hospital as a result of a conversion, as the terms "conversion�, "new hospital�,
and "person(s)� are defined within this chapter.
(2) "Acquiror� means the person or persons that gain(s) an ownership or control in the
new hospital as a result of a conversion, as the terms "conversion�, "new hospital�,
and "person(s)� are defined within this chapter.
(3) "Affected community� means any city or town within the state wherein an existing hospital
is physically located and/or those cities and towns whose inhabitants are regularly
served by the existing hospital.
(4) "Charity care� is defined as healthcare services provided by a hospital without charge
to a patient and for which the hospital does not and has not expected payment.
(5) "Community benefit� means the provision of hospital services that meet the ongoing
needs of the community for primary and emergency care in a manner that enables families
and members of the community to maintain relationships with persons who are hospitalized
or are receiving hospital services, and shall also include, but not be limited to
charity care and uncompensated care.
(6) "Conversion� means any transfer by a person or persons of an ownership or membership
interest or authority in a hospital, or the assets of a hospital, whether by purchase,
merger, consolidation, lease, gift, joint venture, sale, or other disposition that
results in a change of ownership or control or possession of twenty percent (20%)
or greater of the members or voting rights or interests of the hospital or of the
assets of the hospital or pursuant to which, by virtue of the transfer, a person,
together with all persons affiliated with the person, holds or owns, in the aggregate,
twenty percent (20%) or greater of the membership or voting rights or interests of
the hospital or of the assets of the hospital, or the removal, addition, or substitution
of a partner that results in a new partner gaining or acquiring a controlling interest
in the hospital, or any change in membership that results in a new person gaining
or acquiring a controlling vote in the hospital.
(7) "Current conflict of interest forms� means conflict of interest forms signed within
one year prior to the date the application is submitted on a form acceptable to the
department of the attorney general, setting forth any possible conflict of interest
for all officers, directors, members of the board, trustees, senior management, chairpersons
or department chairpersons and medical directors, or the transacting parties and their
families.
(8) "Department� means the department of health and the department of the attorney general.
(9) "Director� means the director of the department of health.
(10) "Existing hospital� means the acquiree hospital as it exists prior to the acquisition.
(11) "For-profit corporation� means a legal entity formed for the purpose of transacting
business that has as any one of its purposes pecuniary profit.
(12) "Hospital� means a person or governmental entity licensed in accordance with chapter
17 of this title to establish, maintain, and operate a hospital.
(13) "Incumbent or recently incumbent� means those individuals holding the position at
the time the application was submitted and any individual who held a similar position
within one year prior to the application's acceptance.
(14) "New hospital� means the acquiree hospital as it exists after the completion of a
conversion.
(15) "Not-for-profit corporation� means a legal entity formed for some charitable or benevolent
purpose and not-for-profit which has been exempted from taxation pursuant to Internal Revenue Code § 501(c)(3), 26 U.S.C. § 501(c)(3).
(16) "Person� means any individual, trust or estate, partnership, corporation (including
associations, joint stock companies, and insurance companies), state or political
subdivision, or instrumentality of the state.
(17) "Senior managers� or "senior management� means executives and senior level managers
of a transacting party.
(18) "Transacting parties� means the acquiree and the acquiror.
(19) "Uncompensated care� means a combination of free care, which the hospital provides
at no cost to the patient; bad debt, which the hospital bills for but does not collect;
and less than full Medicaid reimbursement amounts.