Francis J. Serbaroli
As we have mentioned in many of these columns, hospitals and other health care facilities in New York state are subject to a complex legal and regulatory system. Most hospitals in the state are not-for-profits or government sponsored. Although some hospitals in New York have operations in other states, only a few hospitals are affiliates or subsidiaries of out-of-state hospital systems. Ownership of a hospital by a publicly-traded hospital operator is effectively prohibited by law. N.Y. Public Health Law (PHL) §2801-a(4)(d)-(e). Where once there were many physician-owned for-profit hospitals throughout the state, there are few, if any, for-profit general hospitals left, and none in New York City.
In an important development, the New York State Department of Health (DOH), which licenses and regulates general hospitals, is considering allowing the co-sponsorship of not-for-profit hospitals by out-of-state not-for-profit systems. This column will discuss hospital governance in New York and what this new development may entail.
