Connecticut Hospitals Converting From Nonprofit to For-Profit Could Face More Regulations

Two Connecticut bills seek to further regulate the process of hospitals converting from nonprofit to for-profit status.

Senate Bill 460 and House Bill 5571 would create more stringent requirements for the regulatory approval process and give the state's attorney general more authority in approving conversions.

Opponents of the two bills say they are overly broad and create obstacles to partnerships that will, in the long run, allow the state's hospitals to operate amid the many changes in healthcare and reimbursement structures, according to a Courant report.

In the report, Jim Jacobellis, senior vice president of government and regulatory affairs for the Connecticut Hospital Association, said Senate Bill 460 would create a "regulatory environment that will prevent hospitals and healthcare systems from creating strategic partnerships that allow them to adapt and grow in this new and rapidly changing healthcare environment."

Supporters of the bills say such regulations are needed to ensure employees are treated fairly and healthcare quality does not erode, according to the report.

"SB 460 and HB 5571 strengthen current statutes by expanding the ability of the attorney general to investigate community impact and to demand transparency," said Joanne Chapin, president of the nurses' union at New Milford (Conn.) Hospital, in the report. 

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