N.J. Admin. Code § 8:96-7.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 8:96-7.2 - Sale, lease, or sale-leaseback agreement with a non-hospital owner or a director, officer, key employee, or highly compensated individual, as well as any owner of the hospital

(a) The hospital shall ensure that a sale, lease, or sale-leaseback agreement transferring hospital property and/or buildings to a non-hospital owner or a director, officer, key employee, highly compensated individual, or any owner(s) of the hospital, shall contain:

1. A provision in which the proposed purchaser of the hospital property or building agrees and acknowledges that, despite its ownership interest, any action to discontinue hospital operations or transfer the hospital operating license is prohibited, absent Department approval upon review of an application for a certificate of need or license to undertake the action; and

2. An established and functioning governing body of the hospital operator remains responsible for institutional management and planning of the hospital.

N.J. Admin. Code § 8:96-7.2

Adopted by 55 N.J.R. 2335(b), effective 11/20/2023