Bill > SB664

This bill establishes new regulations for hospitals located in economically distressed communities that conduct significant workforce reductions, aiming to ensure accountability and responsible stewardship of resources. Specifically, if a hospital in a "distressed place-based economy" (a municipality or region officially designated as economically struggling) lays off more than 10 employees in a single department within a six-month period, it will face an 18-month freeze on "C-suite executive" compensation, which includes salary, bonuses, and other remuneration for top leaders like the CEO and CFO. Hospitals must report these reductions and their executive compensation details to the state's charitable trust unit, a division of the Department of Justice responsible for overseeing charitable organizations. This unit will enforce the law, with powers to investigate, issue compliance orders, impose fines, and even order the recovery of improperly awarded executive pay. The bill also prohibits hospitals from offsetting the impact of these executive compensation freezes by further cutting frontline staff or patient care.