Bill > S532

This bill establishes the Preserving Competition in Healthcare Act, which creates a comprehensive regulatory framework for hospital transactions in North Carolina. The legislation requires hospital entities (including corporations and governmental hospitals) to provide advance written notice to the State Auditor, Attorney General, and State Treasurer before any significant transaction involving the sale, transfer, or change of control of hospital assets valued at $5 million or more. These officials will jointly review proposed transactions, considering factors such as healthcare service accessibility, cost, quality, community benefits, potential impacts on competition, and compliance with existing laws. The bill mandates public hearings to gather community input and requires detailed public notices about proposed transactions. Transactions must be evaluated based on multiple criteria, including potential effects on healthcare providers, patient access, community benefits, and potential conflicts of interest. If the reviewing officials object to a transaction, they can file a legal action to block or modify the proposed deal. For nonprofit or publicly owned hospitals, the bill imposes additional scrutiny to ensure that charitable assets and community benefits are preserved. The bill also establishes reporting requirements for acquiring entities after transactions are completed and provides penalties for violations, including potential civil penalties up to $50,000 (or $1 million for willful violations) and potential voiding of non-compliant transactions. The act becomes effective on December 1, 2025, and applies to activities occurring on or after that date.

https://www.ncleg.gov/BillLookUp/2025/S532