Bill
SB 2339
SB 2339 creates an expedited, parallel AG/DOH review for hospital conversions during court-supervised insolvency, with a 90-day decision timeline and a one-year sunset.
Date Introduced: January 29, 2026
Committee: Senate Judiciary
Sponsors: Bissaillon, Famiglietti, Lawson, Ciccone, Tikoian
Goal and main purpose
- SB 2339 seeks to modify the Hospital Conversions Act by creating a pathway for expedited initial review of hospital conversion proposals when a hospital is in court-supervised insolvency proceedings. The bill authorizes the Attorney General (AG) and the Department of Health (DOH) to permit filing an initial application under an expedited process similar to § 23-17.14-12.1, under certain insolvency conditions.
- The measure includes a sunset provision: the expedited-review authority would expire one year after the act’s effective date, but it would not hinder reviews already filed before the sunset.
Key provisions and changes
- Expanded eligibility for expedited review:
- Applies to conversions involving for-profit or not-for-profit hospitals where the acquiror or acquiree is a for-profit or not-for-profit entity, consistent with existing Hospital Conversions Act requirements.
- The act adds the possibility that a hospital under court-supervised insolvency (e.g., bankruptcy, receivership, special master) can file an initial application under the expedited review provisions.
- Concurrent review obligation:
- The two departments (AG and DOH) must review in parallel and cannot delay one department’s determination because the other has not finished.
- The applicant may request concurrent review with any relevant federal regulatory authority.
- Filing and content requirements:
- The initial application must include the same detailed information as currently required by § 23-17.14-6(a) (a lengthy list of financial, operational, governance, charitable, community-benefit, staffing, real estate, and due-diligence materials, etc.), which the AG and DOH would review.
- Two copies of the initial application must be sent to each department, with optional electronic filing.
- Public access and confidentiality:
- Except for information deemed confidential or proprietary by the AG under § 23-17.14-32, the initial application and supporting materials are public records.
- Certain due-diligence reports would be kept confidential and not released to the public, regardless of other provisions.
- Timelines:
- If the expedited pathway is used, each department must render a decision within 90 days of accepting the application (under the new expedited track).
- A separate provision allows filing under this expedited process within 20 working days of notification if insolvency conditions are met.
- Sunset:
- The expedited review authority sunsets one year after the act’s effective date. Ongoing reviews filed before the sunset are not barred, and the act’s other provisions continue to apply to those applications.
Who is affected
- Hospitals in Rhode Island undergoing conversion (for-profit or not-for-profit), and their transacting parties.
- Patients and communities may be affected via the expedited review of conversions during insolvency, potentially impacting community-benefit commitments, charity care, staffing, and service levels.
- State agencies: Department of Health and Attorney General, which oversee the review process and confidentiality protections.
Procedural/timeline notes
- Effective date: Upon passage.
- The act introduces a one-year sunset for the new expedited-review authority, with protections for filings already in progress.
- Public records rules and confidential information treatment remain aligned with existing law, with specific confidentiality for certain due-diligence materials.
In summary, SB 2339 creates an expedited review option for hospital conversions when a hospital is in court-supervised insolvency, ensuring parallel agency review, maintaining substantial public-record transparency with limited confidentiality for sensitive materials, and establishing a 90-day decision deadline for the expedited track. The measure expires after one year, with grandfathering for filings already begun.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
