New York Codes, Rules and Regulations › Title 10 - DEPARTMENT OF HEALTH › Chapter V - Medical Facilities › Subchapter B - Hospital Establishment › Part 620 - Incorporations And Transfers Of Proprietary Businesses › Section 620.1 - Establishment of business corporations

Current through Register Vol. 46, No. 28, July 10, 2024
Persons seeking the approval of the Public Health Council
					 for the formation of a business corporation to be established as the operator
					 of a hospital shall file, in addition to the requirements of Part 600 of this
					 Subchapter, information, documents and data as follows:
(a) A photocopy of the executed proposed
				  certificate of incorporation which shall, in all respects, conform to the
				  applicable provisions of the Business Corporation Law and all other pertinent
				  laws of the State of New York. Such certificate of incorporation shall contain
				  provisions to the following effect:
(1) The
				  corporate powers and purposes shall be limited to the ownership and operation,
				  or operation, of a hospital or hospitals specifically named and the location or
				  locations of which are specifically designated by street address, city, town,
				  village or locality and county; provided, however, that the corporate powers
				  and purposes may also include the ownership and operation, or operation, of a
				  hospice or hospices, as defined in article 40 of the Public Health Law, a
				  certified home health agency or licensed home care services agency or agencies
				  as defined in article 36 of the Public Health Law, or a health maintenance
				  organization as defined in article 44 of the Public Health Law; if the
				  corporation has received all approvals required under such law to own and
				  operate, or operate, such hospice or hospices, home care services agency or
				  agencies or health maintenance organization.
(2) The location of the principal office of
				  the corporation which shall be at the same address as a hospital, hospice, home
				  care services agency or health maintenance organization which is to be operated
				  by the corporation in the State of New York.
(3) No person may own 10 percent or more of
				  the stock of the corporation who has not been approved for the ownership of
				  such stock by the Public Health Council.
(4) All stock certificates of the corporation
				  shall bear on the face thereof the following:
(i) no person shall own 10 percent or more of
				  the stock of the corporation unless he has been approved for such ownership by
				  the Public Health Council;
(ii) a
				  statement that any transfer, assignment or other disposition of 10 percent or
				  more of the stock or of 10 percent of the voting rights thereunder of the
				  corporation or the transfer, assignment or other disposition of the stock or
				  voting rights of the corporation which results in the ownership or control of
				  more than 10 percent of the stock or voting rights thereunder of the
				  corporation by any person shall be subject to approval by the Public Health
				  Council; and
(iii) a statement that
				  no stock or voting rights thereunder of the corporation may be owned or
				  controlled by another corporation.
(5) Stock shall consist of one class of
				  common stock only.