Connecticut HB 5165: AN ACT REQUIRING AN EVALUATION OF THE APPOINTMENT OF A RECEIVER TO MANAGE HOSPITALS IN FINANCIAL DISTRESS OR OPERATIONAL CRISIS.

Bill Text

House Bill No. 5165 
 
Special Act No. 26-29 
 
 
AN ACT REQUIRING AN EVALUATION OF THE APPOINTMENT OF 
A  RECEIVER  TO  MANAGE  HOSPITALS  IN  FINANCIAL  DISTRESS 
OR OPERATIONAL CRISIS. 
Be  it  enacted  by  the  Senate  and  House  of Representatives  in  General 
Assembly convened: 
 
Section 1. (Effective from passage) (a) As used in this section, "a hospital 
in financial distress or operational crisis" means a hospital that (1) has 
filed for bankruptcy protection, or (2) is experiencing three or more of 
the  following  conditions:  (A)  The  hospital  has  been  issued  a  negative 
going concern opinion by its independent auditing firm; (B) the hospital 
owes fees, taxes or an assessment to one or more public entities and such 
fees or taxes are, or such assessment is, not less than one hundred eighty 
days   past   due,   provided   the   hospital   has   not   (i)   commenced   a 
proceeding to contest the payment of such fees, taxes or assessment, or 
(ii)  been  granted  an  extension  of  time  to  pay  such  fees,  taxes  or 
assessment;  (C)  the  hospital  is  in  default  of  a  material  covenant  on  a 
bond contract or similar debt instrument; (D) the hospital has failed to 
make  a  payment  of  wages,  as  defined  in  section  31-71a  of  the  general 
statutes, for two or more consecutive pay periods, provided the amount 
of such wages is not in dispute pursuant to section 31-71d of the general 
statutes;  or  (E)  the  Commissioner  of  Public  Health  has  revoked  the 
hospital's license or the Centers for Medicare and Medicaid Services has 
revoked the hospital's participating provider status. 

House Bill No. 5165 
 
Special Act No. 26-29 2 of 2 
 
(b)  The  Commissioner  of  Public  Health  shall  evaluate  whether  the 
Attorney  General  should  be  authorized  to  petition  the  Superior  Court 
for  the  appointment  of  a  receiver  to  manage  a  hospital  in  financial 
distress  or  operational  crisis.  Not  later  than  October 1,  2027,  the 
commissioner shall report, in accordance with the provisions of section 
11-4a  of  the  general  statutes,  to  the  joint  standing  committee  of  the 
General  Assembly  having  cognizance  of  matters  relating  to  public 
health regarding such evaluation. 
 
 
 
Governor's Action: 
Approved June 4, 2026