7-Eleven® has been known since 1980 for the Big Gulp, a soft drink served in an unusually large cup. While the name may be a coincidence, the Florida legislature’s House Bill 711 (“HB 711”) may be equally difficult for hospitals to quickly swallow.
HB 711 requires that governing boards of county, district, or municipal hospitals evaluate the possible benefits of selling or leasing their hospital facilities to a not-for-profit or for-profit entity. The evaluation process must commence no later than December 31, 2012, and among other things consist of:
- A public hearing;
- A determination of the hospital’s fair market value by an independent certified public accounting or valuation firm;
- An objective operating comparison between the hospital and other similarly situated not-for-profit and for-profit hospitals; and,
- A determination of whether it is more beneficial to taxpayers and the affected community for the hospital to be operated by a governmental entity, or whether the hospital can be operated by a not-for-profit or for-profit entity with comparable cost-efficiencies or measurable outcomes identified by the Centers for Medicare and Medicaid Services Core Measures.
These requirements place an additional responsibility on the Board of Directors for all public hospitals in Florida. Board members will have to determine how to best address their fiduciary responsibility based on the result of the analyses required by HB 711. While some healthcare pundits have speculated that the law may result in the sale of many of Florida’s public hospitals, Boards may have other options. For instance, converting the public hospital to a Section 501(c)(3) Organization may be a feasible alternative to remaining a public hospital subject to HB 711.
PYA has teamed with TriBrook Healthcare Consultants to provide an efficient and uniform approach for assisting Florida’s public hospitals in addressing the requirements of HB 711 and determining the appropriate strategic response for these organizations.
To learn more about how PYA and TriBrook can assist your organization, contact the expert listed below at (800) 270-9629.
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