SB151 Alabama 2013 Session

Under existing law, the Court of Civil Appeals has ruled that a certificate of need (CON) issued to a business entity not specified in the law for a health care facility or health maintenance organization, or issued for an institutional health service, is generally not transferable by sale, lease, or other transaction.

This bill would specify that the transfer of a certificate of need by lease issued to a limited liability company or other legal entity by lease, sale, or other transaction involving an existing health care facility, health maintenance organization, or institutional health service does not require a new or additional CON.

The bill would apply retroactively when an amendment to the CON law was enacted which had previously been interpreted as authorizing the transfers without a new CON.

To amend Sections 22-21-260, 22-21-263, and 22-21-270, Code of Alabama 1975, relating to the issuance of a certificates of need for health care facilities, health maintenance organizations, and the institutional health services; to specify that health care facilities and health maintenance organizations may be organized in limited liability companies and other legal entities; and to provide that this act would be retroactive to July 30, 1979.