Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 67

as introduced - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 07/08/2021 08:41am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4
1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16
1.17 1.18 1.19 1.20 1.21 1.22 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28
2.29 2.30 2.31 2.32 2.33 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31
4.1 4.2 4.3 4.4 4.5 4.6 4.7
4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16
4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19
5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23
6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7
7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19
7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9
8.10 8.11 8.12 8.13
8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15
9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 10.1 10.2 10.3 10.4 10.5
10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24
10.25 10.26 10.27 10.28 10.29 10.30 10.31 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8
12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30

A bill for an act
relating to health; establishing the Health Care Commission; proposing coding for
new law as Minnesota Statutes, chapter 144I.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [144I.01] LEGISLATIVE FINDINGS.
new text end

new text begin The legislature finds while this state enjoys superior medical resources, the state has a
responsibility to ensure that these resources are available, accessible, and affordable to all
residents regardless of geography or financial status, so that all residents of this state will
benefit from high-quality health care. It is hereby declared to be in the public interest that
the state develop and maintain a state health care plan and that the health care system in the
state be regulated consistent with the state health care plan as provided in this chapter in
order to ensure consumers of health care services in this state have adequate, accessible,
convenient, and reliable health care services at reasonable rates, consistent with the financial
and economic requirements of health care companies and health care providers and their
need to construct, close, and consolidate health care facilities to provide health care services
and to avoid unnecessary duplication of facilities and services.
new text end

Sec. 2.

new text begin [144I.02] HEALTH CARE COMMISSION ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin There is created a Health Care Commission. The Health
Care Commission shall have and possess all of the rights and powers and perform all of the
duties vested in it by this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of the Health Care Commission is to promote the
development of a health care regulatory system that provides financial and geographic
access to quality health care services at a reasonable cost by developing a state health care
plan, facilitating development of regional health care plans, developing and implementing
the regulatory powers of the commission consistent with the state health care plan, and
issuing certificates of need based on the state health care plan.
new text end

new text begin Subd. 3. new text end

new text begin Members. new text end

new text begin (a) The Health Care Commission shall consist of seven members.
The terms of members shall be six years and until their successors have been appointed and
qualified, except that three of the initial appointments shall be six years, two of the initial
appointments shall be four years, and two of the initial appointments shall be two years.
Each commissioner shall be appointed by the governor with the advice and consent of the
senate. The governor shall designate the length of term of each initial appointment prior to
the nominee being qualified. At least one commissioner must have been domiciled at the
time of appointment outside the seven-county metropolitan area. For purposes of this
subdivision, "seven-county metropolitan area" means Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington Counties.
new text end

new text begin (b) When selecting commissioners, the governor shall give consideration to persons who
have engaged in the profession of health care economics, health care administration,
medicine, nursing, public accounting, finance, and law, as well as being representative of
the general public.
new text end

new text begin Subd. 4. new text end

new text begin Removal; vacancy. new text end

new text begin The removal of members and filling of vacancies on the
commission shall be as provided in section 15.0575.
new text end

new text begin Subd. 5. new text end

new text begin Chair. new text end

new text begin The governor shall select one of the commissioners to serve as the chair
for a term concurrent with that of the governor. If a vacancy occurs in the position of chair,
the governor shall select a new chair to complete the unexpired term.
new text end

new text begin Subd. 6. new text end

new text begin Powers and duties of chair. new text end

new text begin The chair shall be the principal executive officer
of the commission and shall preside at meetings of the commission. The chair shall organize
the work of the commission and may make assignments to commission members, appoint
committees, and give direction to the commission staff through the executive secretary
subject to the approval of the commission.
new text end

Sec. 3.

new text begin [144I.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Health care company. new text end

new text begin "Health care company" means persons, corporations,
or other legal entities and their lessees, trustees, and receivers, engaged in the business of
owning, operating, maintaining, or controlling equipment or facilities in this state for
furnishing health care services in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Health care facility. new text end

new text begin "Health care facility" means a structure or structures
available for use within this state as a hospital, clinic, psychiatric residential treatment
facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
medical office building, residence for nurses or interns, residential hospice, prescribed
pediatric extended care facility, or other facility related to the delivery of health care services.
new text end

new text begin Subd. 4. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" or "provider" means a person
or organization other than a nursing home that provides health care or medical care services
within Minnesota for a fee and is eligible for reimbursement under the medical assistance
program under chapter 256B. For purposes of this subdivision, "for a fee" includes traditional
fee-for-service arrangements, capitation arrangements, and any other arrangement in which
a provider receives compensation for providing health care services or has the authority to
directly bill a group purchaser, health carrier, or individual for providing health care services.
For purposes of this subdivision, "eligible for reimbursement under the medical assistance
program" means that the provider's services would be reimbursed by the medical assistance
program if the services were provided to medical assistance enrollees and the provider
sought reimbursement, or that the services would be eligible for reimbursement under
medical assistance except that those services are characterized as experimental, cosmetic,
or voluntary.
new text end

new text begin Subd. 5. new text end

new text begin Health care service. new text end

new text begin (a) "Health care service" means:
new text end

new text begin (1) a service or item that would be covered by the medical assistance program under
chapter 256B if provided in accordance with medical assistance requirements to an eligible
medical assistance recipient; and
new text end

new text begin (2) a service or item that would be covered by medical assistance except that it is
characterized as experimental, cosmetic, or voluntary.
new text end

new text begin (b) Health care service does not include retail, over-the-counter sales of nonprescription
drugs and other retail sales of health-related products that are not generally paid for by
medical assistance and other third-party coverage.
new text end

Sec. 4.

new text begin [144I.04] CONFLICT OF INTEREST.
new text end

new text begin No person, while a member of the commission, while acting as executive secretary of
the commission, or while employed in a professional capacity by the commission, shall
receive any income, other than dividends or other earnings from a mutual fund or trust if
these earnings do not constitute a significant portion of the person's income, directly or
indirectly from any health care company or other organization subject to regulation by the
commission.
new text end

Sec. 5.

new text begin [144I.05] EXECUTIVE SECRETARY; COMMISSION EMPLOYEES.
new text end

new text begin Subdivision 1. new text end

new text begin Selection of executive secretary. new text end

new text begin The commission shall appoint an
executive secretary, who is not a member, who shall be in the unclassified service of the
state and shall serve at the pleasure of the commission. The executive secretary shall be
subject to the same disqualifications as commissioners.
new text end

new text begin Subd. 2. new text end

new text begin Officers and employees. new text end

new text begin The commission may establish other positions in the
unclassified service if the positions meet the criteria of section 43A.08, subdivision 1a,
clauses (1) to (7). The commission may employ other persons as may be necessary to carry
out the commission's functions.
new text end

Sec. 6.

new text begin [144I.06] COMMISSION FUNCTIONS AND POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Legislative and quasi-judicial functions. new text end

new text begin The functions of the
commission shall be legislative and quasi-judicial in nature. The commission may make
investigations and determinations, hold hearings, prescribe rules, and issue orders with
respect to the control and conduct of the businesses coming within its jurisdiction as the
legislature itself might make, but only as the commission shall from time to time authorize.
The commission may adjudicate all proceedings brought before it in which the violation of
any law or rule administered by the department is alleged.
new text end

new text begin Subd. 2. new text end

new text begin Powers generally. new text end

new text begin The commission has sole authority to prepare and adopt the
state health care plan and to issue certificates of need. The commission shall, to the extent
prescribed by law:
new text end

new text begin (1) investigate the adequacy of health care services in the state by analyzing and studying
the geographical distribution within the state of health care services, health care facilities
and technologies, and of the allocation of health care financial resources;
new text end

new text begin (2) provide for a study of systems capacity in health care services;
new text end

new text begin (3) designate regional health care service areas in the state;
new text end

new text begin (4) establish regional health care planning boards corresponding to designated regional
health care service areas;
new text end

new text begin (5) investigate the impact of reimbursement and payment systems on the adequacy of
health care services in regional health care service areas;
new text end

new text begin (6) investigate the potential of greater collaboration among stakeholders within a regional
health care service area, such as public health departments or county-based purchasing
plans, to improve resource utilization and outcomes through improved investment in primary
and preventive care and care coordination;
new text end

new text begin (7) adopt rules that ensure broad public input, public hearings, and consideration of
regional health care in development of the state health care plan;
new text end

new text begin (8) adopt a state health care plan;
new text end

new text begin (9) adopt rules for applying for and issuing certificates of need;
new text end

new text begin (10) adopt rules that ensure broad public input, public hearings, and consideration of
the state health care plan when considering requests for a certificate of need;
new text end

new text begin (11) issue certificates of need;
new text end

new text begin (12) periodically review, in collaboration with the commissioner of health, whether a
health care facility is satisfying all conditions on which a certificate of need was authorized;
and
new text end

new text begin (13) adopt rules governing appeals of certificate of need decisions.
new text end

Sec. 7.

new text begin [144I.07] STATE HEALTH CARE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Initial and ongoing study. new text end

new text begin (a) The commission shall periodically
participate in or perform analyses and studies that relate to adequacy of health care services
and financial resources to meet the needs of the population, distribution of health care
resources, allocation of health care resources, or any other appropriate matter.
new text end

new text begin (b) The commission shall provide for a study of regional capacity in health care services.
The study shall determine for all health care service areas where capacity should be increased
or decreased to better meet the needs of the population; examine and describe the
implementation methods and tools by which capacity should be altered to better meet the
needs; and assess the impact of those methods and tools on the communities and health care
delivery system.
new text end

new text begin Subd. 2. new text end

new text begin Data and information. new text end

new text begin (a) The commission may request, collect, and report
any statistical or other information that in the opinion of the commission is needed by the
commission to develop and revise the state health care plan.
new text end

new text begin (b) The commission may send to the department or a regional health care planning board
any statistical or other information the commission is authorized to collect under paragraph
(a).
new text end

new text begin Subd. 3. new text end

new text begin The state health care plan. new text end

new text begin On or before October 1 each year, the commission
shall adopt a state health care plan. The plan shall include methodologies, standards, and
criteria for certificate of need review. The commission shall adopt rules that ensure broad
public input, public hearings, and consideration of regional health care planning boards and
regional health care advisory opinions in development of the state health care plan.
new text end

new text begin Subd. 4. new text end

new text begin Required comment by commissioner of health. new text end

new text begin Annually, the commissioner
of health shall make recommendations to the commission on the state health care plan. The
commissioner of health may review and comment on any aspect of the plan, including the
methodologies, standards, and criteria used to designate health care service areas, the plan,
or certificate of need review.
new text end

new text begin Subd. 5. new text end

new text begin Review and revision. new text end

new text begin The commission shall assess annually the state health
care plan, determine the chapter or chapters of the plan that should be reviewed and revised,
establish at a public meeting the priority order and timeline of the plan chapter review and
revision, and publish any changes in the state health care plan that the commission deems
necessary.
new text end

new text begin Subd. 6. new text end

new text begin Plan effective date. new text end

new text begin The plan becomes effective 45 days following the
publication of the state health plan or a revision of the plan.
new text end

Sec. 8.

new text begin [144I.08] REGIONAL HEALTH CARE PLANNING BOARDS.
new text end

new text begin Subdivision 1. new text end

new text begin General duties. new text end

new text begin The regional health care planning boards are locally
controlled boards consisting of health care companies, health care providers, health care
systems, health plan companies, employers, consumers, and elected officials. Regional
health care planning boards may:
new text end

new text begin (1) undertake voluntary activities to educate consumers, providers, and purchasers about
community plans and projects impacting health care services, consumer accountability,
access, and quality and efforts to maintain or improve in these areas;
new text end

new text begin (2) make recommendations to the commission regarding ways of improving affordability,
accessibility, and quality of health care in the region and throughout the state;
new text end

new text begin (3) provide technical assistance to parties interested in proposing a project requiring a
certificate of need under this chapter;
new text end

new text begin (4) develop and adopt a regional health care plan; and
new text end

new text begin (5) consult with the commission in drafting the state health plan.
new text end

new text begin Subd. 2. new text end

new text begin Terms; compensation; removal; vacancies. new text end

new text begin Regional health care planning
boards are governed by section 15.0575, except that members do not receive per diem
payments.
new text end

Sec. 9.

new text begin [144I.09] CERTIFICATE OF NEED.
new text end

new text begin Subdivision 1. new text end

new text begin Fees. new text end

new text begin The commission may set an application fee for a certificate of need.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The commission shall adopt rules for applying for and issuing certificates
of need.
new text end

new text begin Subd. 3. new text end

new text begin Minimum requirements for certificate of need applications. new text end

new text begin The commission
may adopt by rule thresholds or methods for determining the circumstances or minimum
requirements under which a certificate of need application must be filed.
new text end

new text begin Subd. 4. new text end

new text begin Standards of review. new text end

new text begin The commission shall develop and adopt rules establishing
standards and policies for certificate of need review that are consistent with the state health
care plan. The standards shall address the availability, accessibility, cost, and quality of
health care, and shall be reviewed and revised periodically to reflect new developments in
health care, health care service delivery, and technology.
new text end

Sec. 10.

new text begin [144I.10] REQUIRED CERTIFICATES OF NEED.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin A person must have a certificate of need issued by the
commission before the person develops, operates, or participates in any of the health care
projects for which a certificate of need is required under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin New facilities. new text end

new text begin A certificate of need is required before a new health care facility
is built, developed, or established.
new text end

new text begin Subd. 3. new text end

new text begin Relocated facilities. new text end

new text begin A certificate of need is required before an existing or
previously approved but not yet built health care facility is moved to another site.
new text end

new text begin Subd. 4. new text end

new text begin Changes on hospital bed capacity. new text end

new text begin A certificate of need is required before the
bed capacity of a hospital is changed.
new text end

new text begin Subd. 5. new text end

new text begin Hospital closures. new text end

new text begin A certificate of need is required before a hospital is closed.
new text end

new text begin Subd. 6. new text end

new text begin Change of services. new text end

new text begin A certificate of need is required before the type or scope
of any health care service is changed.
new text end

new text begin Subd. 7. new text end

new text begin Other health care facility capital expenditures. new text end

new text begin A certificate of need is
required before any of the following capital expenditures are made by or on behalf of a
health care facility other than a hospital:
new text end

new text begin (1) any expenditure that is not properly chargeable as an operating or maintenance
expense under generally accepted accounting principles; and
new text end

new text begin (2) any expenditure that is made to lease or, by comparable arrangement, obtain any
plant or equipment for the health care facility other than a hospital.
new text end

Sec. 11.

new text begin [144I.11] EXEMPTIONS FROM REQUIRED CERTIFICATE OF NEED.
new text end

new text begin The commission shall develop and adopt rules for applying for and granting exceptions
from required certificates of need for small and independent health care companies,
particularly with respect to facilities located in rural areas.
new text end

Sec. 12.

new text begin [144I.12] PROPOSED PROJECTS AND APPLICATIONS FOR A
CERTIFICATE OF NEED.
new text end

new text begin Subdivision 1. new text end

new text begin Notification of proposed projects; general requirement. new text end

new text begin A health care
facility, health care company, or health care system proposing to complete a project after
October 1, 2023, shall submit notification of the proposed project to the commissioner and
provide the commission with any relevant background information.
new text end

new text begin Subd. 2. new text end

new text begin Required information; generally. new text end

new text begin (a) Notification to the commission of a
proposed project must include a report containing information as determined by the
commission.
new text end

new text begin (b) The provider may submit any additional information that the provider deems relevant.
new text end

new text begin Subd. 3. new text end

new text begin Required information; hospital closures. new text end

new text begin Notification to the commission of
a proposed project involving the voluntary closure of a hospital must include a local economic
impact statement and a regional health care impact statement.
new text end

new text begin Subd. 4. new text end

new text begin Incorporation of proposed projects into state plan. new text end

new text begin The commission shall
regard submission of a notification of a proposed project as a request for a review of the
state health care plan.
new text end

new text begin Subd. 5. new text end

new text begin Certificate of need application. new text end

new text begin Following notification of a proposed project
or concurrently with submission of a notification, a health care company shall submit an
application for a certificate of need. The application must meet any other standards
established by the commission to approve applications under this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Public notice. new text end

new text begin (a) If the commission receives an application for a certificate of
need, the commission shall give public notice of the filing by posting notice online on a
website developed and maintained by the commission for this purpose.
new text end

new text begin (b) If the commission receives an application for a certificate of need for a change in
the bed capacity of a health care facility, for the closure of a health care facility, or for a
health care project that would create a new health care service or abolish an existing health
care service, the commission shall give notice of the filing by posting notice online and give
notice to each member of the legislature in whose district the project is planned; each member
of the governing body for the county where the project is planned; the county executive,
mayor, or chief executive officer, if any, in whose county or city the action is planned; and
any health care provider, third-party payer, regional health care planning board, or any other
person the commission knows has an interest in the application.
new text end

new text begin (c) The commission's failure to give notice shall not adversely affect the application.
new text end

Sec. 13.

new text begin [144I.13] CERTIFICATE OF NEED REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Commission authority. new text end

new text begin Only the commission shall have final
nondelegable authority to act upon an application for a certificate of need.
new text end

new text begin Subd. 2. new text end

new text begin Consistency with state plan required. new text end

new text begin (a) All decisions of the commission
on an application for a certificate of need, except in emergency circumstances posing a
threat to public health, shall be consistent with the state health care plan and the standards
for review established by the commission.
new text end

new text begin (b) Failure of the state health care plan to address any particular project or health care
service shall not render the project inconsistent with the state health care plan.
new text end

new text begin Subd. 3. new text end

new text begin Public written comment. new text end

new text begin Any interested party may submit written comments
on the application in accordance with rules adopted by the commission.
new text end

new text begin Subd. 4. new text end

new text begin Public hearing. new text end

new text begin An applicant and any interested party may request the
opportunity to present an oral argument to the commission, in accordance with rules adopted
by the commission.
new text end

new text begin Subd. 5. new text end

new text begin Final action. new text end

new text begin The commission shall, after determining that the application is
complete, vote to approve, to approve with conditions, or to deny the application on the
basis of the record, exceptions, and arguments before the commission.
new text end

new text begin Subd. 6. new text end

new text begin Reconsideration. new text end

new text begin The applicant or any aggrieved party may petition the
commission within 15 days of a vote for reconsideration. The commission shall decide
whether or not it will reconsider its decision within 30 days of receipt of the petition for
reconsideration. The commission shall issue its reconsideration decision within 30 days of
its decision on the petition for reconsideration.
new text end

Sec. 14.

new text begin [144I.14] LICENSED BED CAPACITY FOLLOWING A DENIAL OF A
CERTIFICATION OF NEED TO CLOSE.
new text end

new text begin (a) Notwithstanding section 144.551, subdivision 1, paragraph (b), clause (8), following
a denial of a certificate of need by the commission for the closure of a hospital, the relocation
or redistribution of hospital beds within a hospital corporate system that involves the transfer
of beds from a closed facility site or complex to an existing site or complex is not exempt
from the prohibition against relocating beds under section 144.551, subdivision 1, paragraph
(a).
new text end

new text begin (b) Notwithstanding section 144.551, the commissioner of health may make the licensed
capacity of a hospital that is closed after a denial of a certificate of need available to existing
organizations to increase available bed capacity. The commissioner may distribute the
licensed capacity of the closed hospital first to existing hospitals in the same health care
region as the closed hospital to increase the hospitals' available bed capacity. The
commissioner may distribute the licensed capacity among multiple organizations. If a surplus
of licensed capacity remains after meeting the available bed capacity needs of existing
hospitals in the same health care region as the closed hospital, the commissioner may auction
the remaining licensed capacity of the closed hospital in a manner determined by the
commissioner. The organization that closed the hospital resulting in the capacity that is the
object of the auction may not participate in the auction.
new text end

Sec. 15.

new text begin [144I.15] INVOLUNTARY RECEIVERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) In addition to any other remedy provided by law, the
commissioner of health may petition the district court in Ramsey County for an order
directing a health care company to show cause why the commissioner should not be appointed
receiver to operate a health care facility owned, operated, maintained, or controlled by the
health care company. The petition to the district court must contain proof by affidavit that
one or more of the following exists:
new text end

new text begin (1) that it appears to the commissioner that the health care company intends to voluntarily
close the health care facility without having received a certificate of need from the
commission to do so;
new text end

new text begin (2) that it appears to the commissioner that the health care company intends to change
the type and scope of health care services offered at the health care facility without having
received a certificate of need from the commission to do so; or
new text end

new text begin (3) that it appears to the commissioner that the health care company intends to reduce
the bed capacity at the health care facility without having received a certificate of need from
the commission to do so.
new text end

new text begin (b) If the health care company operates more than one health care facility, the
commissioner's petition must specify and be limited to the facility for which the commissioner
seeks receivership. The affidavit submitted by the commissioner must set forth alternatives
to receivership that have been considered. The order to show cause is returnable not less
than five days after service is completed and must provide for personal service of a copy
to the health care facility administrator and to the persons designated as agents by the health
care company to accept service on its behalf.
new text end

new text begin Subd. 2. new text end

new text begin Appointment of receiver. new text end

new text begin If the court finds after a hearing that involuntary
receivership is necessary as a means of ensuring that the health care needs of the community
in which the health care facility is located are met, the court shall appoint the commissioner
as receiver to operate the health care facility. The commissioner as receiver may contract
with another entity or group to act as the managing agent during the receivership period.
The managing agent will be responsible for the day-to-day operations of the facility subject
at all times to the review and approval of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Rental payments. new text end

new text begin The court shall determine a fair monthly rental for the health
care facility subject to involuntary receivership under this section, taking into account all
relevant factors including the condition of the health care facility. This rental fee shall be
paid by the receiver to the appropriate health care company for each month that the
receivership remains in effect. The health care company may agree to waive the fair monthly
rent by affidavit to the court. Notwithstanding any other law to the contrary, no payment
made to a health care company by any state agency during a period of involuntary
receivership shall include any allowance for profit or be based on any formula that includes
an allowance for profit.
new text end

new text begin Subd. 4. new text end

new text begin Termination. new text end

new text begin An involuntary receivership terminates 36 months after the date
on which it was ordered or at any other time designated by the court, or when any of the
following events occurs:
new text end

new text begin (1) the commission issues a certificate of need for the health care facility that is in
receivership;
new text end

new text begin (2) the commission determines that a certificate of need is no longer required; or
new text end

new text begin (3) the court determines that the receivership is no longer necessary because the conditions
that gave rise to the receivership no longer exist.
new text end

Sec. 16.

new text begin [144I.16] SALE OF HEALTH CARE FACILITY IN RECEIVERSHIP;
RIGHT OF FIRST REFUSAL FOR HOSPITAL OR HOSPITAL CAMPUS.
new text end

new text begin Subdivision 1. new text end

new text begin Prerequisite before sale or conveyance of a health care facility in
receivership.
new text end

new text begin During the period of the receivership, the controlling persons of a health care
facility in receivership under this chapter shall not sell or convey the health care facility, or
offer to sell or convey the health care facility, unless the controlling persons have first made
a good-faith offer to sell or convey the health care facility to the home rule charter or statutory
city, county, town, or hospital district in which the hospital or hospital campus is located,
and the good-faith offer has been declined by all potential purchasers eligible under this
section.
new text end

new text begin Subd. 2. new text end

new text begin Offer. new text end

new text begin The offer to sell or convey the health care facility must be at a price that
does not exceed the current fair market value of the health care facility. A party to whom
an offer is made under subdivision 1 must accept or decline the offer within 365 days after
receipt of a good-faith offer. If the party fails to respond within 365 days after receipt, the
offer is deemed declined.
new text end

new text begin Subd. 3. new text end

new text begin Duties of the commission. new text end

new text begin If the controlling persons of a health care facility
in receivership make a good-faith offer to sell or convey the health care facility to a potential
buyer eligible under this section, the commission, in cooperation with the relevant regional
health care planning board, must provide all appropriate technical assistance to the eligible
buyer to evaluate the offer accurately, develop financing options, develop an appropriate
governance structure, and make arrangements for the management and operation of the
facility following a purchase.
new text end