Acquisition in the public interest; decision of attorney general
HRS §323D-76
in effect323D-76. Acquisition in the public interest; decision of attorney general
If the attorney general determines that a review of the application is appropriate, the attorney general shall approve the application unless the attorney general finds that the acquisition is not in the public interest. An acquisition of a private nonprofit hospital is not in the public interest unless appropriate steps have been taken to safeguard the value of charitable assets and ensure that any proceeds of the transaction are used for appropriate charitable health care purposes as provided in paragraph (8). In determining whether the acquisition meets such criteria, the attorney general shall consider, as applicable:
(1) Whether the acquisition is permitted under chapter
414D governing nonprofit entities, trusts, or charities;
(2) Whether the hospital acted in a duly diligent
manner in deciding to sell, selecting the purchaser, and negotiating the terms
and conditions of the sale;
(3) The procedures used by the seller in making its
decision, including whether appropriate expert assistance was used;
(4) Whether all conflicts of interest were disclosed,
including, but not limited to, conflicts of interest related to board members
of, executives of, and experts retained by the seller, purchaser, or parties to
the acquisition;
(5) Whether the seller will receive reasonably fair
value for its assets. The attorney general may employ, at the seller's
expense, reasonably necessary expert assistance in making this determination;
(6) Whether charitable funds are placed at
unreasonable risk, if the acquisition is financed in part by the seller;
(7) Whether any management contract under the
acquisition is for reasonably fair value;
(8) Whether the sale proceeds will be used for
appropriate charitable health care purposes consistent with the seller's
original purpose or for the support and promotion of health care in the
affected community, and will be controlled as charitable funds independent of
the purchaser or parties to the acquisition; and
(9) Whether a right of first refusal to repurchase
the assets by a successor nonprofit corporation or foundation has been
retained, if the hospital is subsequently sold to, acquired by, or merged with
another entity.
[L 1998, c 257, pt of §1; am L 2002, c 40, §10]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol06_Ch0321-0344/HRS0323D/HRS_0323D-0076.htmFetched: 11/10/2026