N.J. Admin. Code § 8:96-7.1

Current through Register Vol. 56, No. 12, June 17, 2024

Section 8:96-7.1 - Advance written notice of any sale, lease, or sale-leaseback agreement

(a) No fewer than 90 days prior to signing an agreement for the sale, lease, or sale-leaseback of property on, or building in which a hospital is located, the hospital shall provide notice to the Department of the intent to sign the agreement. Notification to the Department shall include a copy of the agreement, the names of all the parties to the agreement, and the intended use of proceeds from the sale or lease of land or property.

(b) If the land or property on, or building in which a hospital is owned by a director, officer, key employee, highly compensated individual, or any owner(s) of the hospital, those individuals shall, no fewer than 90 days prior to signing an agreement for the sale, lease, or sale-leaseback of land or property provide notice to the Department of the intent to sign the agreement. Notification to the Department shall include a copy of the agreement, the names of all the parties to the agreement, and the intended use of proceeds from the sale or lease of land or property.

(c) The hospital or the director, officer, key employee, highly compensated individual, or any owner(s) of the hospital shall provide written notice by completing and sending the Notice of Sale, Lease, or Sale-Leaseback Agreement Form, which can be found at: http://healthapps.state.nj.us/forms/index.aspx to the Department at least 90 days prior to entering into an agreement, and a copy of the proposed agreement, the names, mailing addresses, email addresses, and telephone numbers of all parties involved, the intended use of the proceeds from the sale, lease, or sale-leaseback of land or property, and a review fee, made payable to the Treasurer, State of New Jersey.

(d) Subsection (a) above does not apply to agreements for property or buildings that are not essential to the functioning of a hospital, that is:

1. The hospital can fully function as an inpatient acute care without the sold and leased-back property and/or buildings;

2. The sale of the property and/or buildings will not interfere with the operation of the hospital as an inpatient acute care facility or prevent the title of the hospital from being considered good and marketable; and

3. The agreement will not have a materially negative impact on the hospital's finances that could endanger its ability to continue as an inpatient acute care facility for the foreseeable future.

(e) The following are examples of hospital property and/or buildings that are not essential to the functioning of a hospital:

1. Surface parking lots or parking structures;

2. Long-term care facilities, ambulatory surgery centers, urgent care centers, primary care centers, outpatient diagnostic or therapeutic radiology centers, and ambulatory care facilities; and

3. Outpatient services buildings, medical office buildings, and outpatient clinical laboratories.

N.J. Admin. Code § 8:96-7.1

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