Definitions

1. Law
2. Georgia Code
3. Health
4. Regulation and Construction of Hospitals and Other Health Care Facilities
5. Hospital Acquisition
6. Definitions

As used in this article the term:

1. "Acquiring entity" means an individual, business corporation, general partnership, limited partnership, limited liability company, limited liability partnership, joint venture, nonprofit corporation, hospital authority, or any other for profit or not for profit entity which is a purchaser or lessee of an acquisition.
2. "Acquisition" means a purchase or lease by an acquiring entity of the assets of a hospital which is owned, controlled, or operated by a nonprofit corporation and which meets one or more of the following conditions:
   1. Constitutes a purchase or lease of 50 percent or more of the assets of a hospital having a permit under this chapter; or
   2. Constitutes a purchase or lease which, when combined with one or more transfers between the same or related parties occurring within a five-year period, constitutes a purchase or lease of 50 percent or more of the assets of a hospital having a permit under this chapter;

      provided, however, that an acquisition does not include the restructuring of a hospital owned by a hospital authority involving a lease of assets to any not for profit or for profit entity which has a principal place of business located in the same county where the main campus of the hospital in question is located and which is not owned, in whole or in part, or controlled by any other for profit or not for profit entity whose principal place of business is located outside such county; provided, further, that an acquisition does not include a restructuring of a nonprofit health system involving the purchase or lease of the assets of a hospital controlled as of March 1, 1999, by the health system's nonprofit parent corporation by another nonprofit entity which is both exempt from federal income taxation and controlled by the same nonprofit parent corporation.

3. "Attorney General" means the Attorney General of the State of Georgia or some other attorney employed in the Attorney General's office and designated to perform the functions required by this article.
4. "Control" or "controlling interest" means ownership of 50 percent or more of the assets of the entity in question or the ability to influence significantly the operations or decisions of the entity in question.
5. "Disposition" means a sale or lease of the assets of a hospital which is owned, controlled, or operated by a nonprofit corporation to an acquiring entity which meets one or more of the following conditions:
   1. Constitutes a sale or lease of 50 percent or more of the assets of a hospital having a permit under this chapter; or
   2. Constitutes a sale or lease which, when combined with one or more transfers between the same or related parties occurring within a five-year period, constitutes a sale or lease of 50 percent or more of the assets of a hospital having a permit under this chapter;

      provided, however, that a disposition does not include the restructuring of a hospital owned by a hospital authority involving a lease of assets to any not for profit or for profit entity which has a principal place of business located in the same county where the main campus of the hospital in question is located and which is not owned, in whole or in part, or controlled by any other for profit or not for profit entity whose principal place of business is located outside such county; provided, further, that a disposition does not include a restructuring of a nonprofit health system involving the sale or lease of the assets of a hospital controlled as of March 1, 1999, by the health system's nonprofit parent corporation to another nonprofit entity which is both exempt from federal income taxation and controlled by the same nonprofit parent corporation.

6. "Family" means a spouse, child, or sibling.
7. "Financial interest" means the direct or indirect ownership of any assets or stock of any business.
8. "Hospital" means any institution classified and having a permit as a hospital from the Department of Community Health pursuant to this chapter and such department's rules and regulations.
9. "Related party" means an individual, business corporation, general partnership, limited partnership, limited liability company, limited liability partnership, joint venture, nonprofit corporation, or any other for profit or not for profit entity that owns or controls, is owned or controlled by, or operates under common ownership or control with a party in question.
10. "Transaction" means an acquisition and disposition.

(Code 1981, §31-7-400, enacted by Ga. L. 1997, p. 1091, § 1; Ga. L. 1999, p. 850, § 1; Ga. L. 2008, p. 12, § 2-26/SB 433.)

Law reviews.

- For annual survey article on local government law, see 52 Mercer L. Rev. 341 (2000). For article, "Local Government Law," see 53 Mercer L. Rev. 389 (2001).

JUDICIAL DECISIONS

"Acquiring entity."

- County is included under the broad catch-all provision: "any other for profit or not for profit entity which is a purchaser or lessee of an acquisition." Turpen v. Rabun County Bd. of Comm'rs, 245 Ga. App. 190, 537 S.E.2d 435 (2000).

"Hospital."

- Paragraph (8) of O.C.G.A. § 31-7-400 cannot be construed to mean that a nonprofit corporation with a hospital permit as of the date of an agreement to sell or as of the date of the original notice provided under the Hospital Acquisition Act, § 31-7-400 et seq., may simply turn in its permit to avoid application of the Act. For the remainder of the life of the proposed transaction or the public review process provided by the Act, a hospital is a hospital for the purposes of the Act. Turpen v. Rabun County Bd. of Comm'rs, 245 Ga. App. 190, 537 S.E.2d 435 (2000).

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