Hospital Conversions act amended to authorize AG and DOH to permit expedited review application for hospital insolvency proceedings. Sunsets in one year.

Plain-English Summary

Rhode Island's Hospital Conversions Act normally requires a detailed review process when a hospital changes ownership, merges, or undergoes other major changes. This bill creates a special "fast-track" option within that existing law, allowing the Attorney General (AG) and the Department of Health (DOH) to speed up their review process specifically when a hospital is facing insolvency — meaning the hospital is in serious financial trouble and may not be able to pay its bills or stay open.

Under this expedited process, the AG and DOH would have the authority to approve or move through the review more quickly than the standard timeline allows, in order to help resolve urgent financial situations before a hospital is forced to close or collapse entirely. The idea is that when a hospital is in a financial crisis, waiting through the normal, lengthy review process could make things worse for both the hospital and the patients who depend on it.

This change would affect hospitals across Rhode Island that find themselves in severe financial distress, as well as the patients, employees, and communities that rely on those hospitals for care. It gives state officials a legal tool to act faster in emergency-like situations, rather than being bound by the standard review timeline.

Importantly, this bill includes a sunset provision, meaning it would automatically expire after one year if lawmakers do not take action to extend or make it permanent. This suggests the legislature wants to try the approach on a limited basis and evaluate whether it works before committing to it long-term. The bill has been referred to the Senate Judiciary Committee for further consideration.