New Hampshire SB 664: limiting hospital executive compensation in communities designated as distressed place-based economies under certain circumstances.

Bill Text

SB 664-FN - AS INTRODUCED

2026 SESSION

 26-3261

 05/09

SENATE BILL 664-FN

AN ACT limiting hospital executive compensation in communities designated as distressed place-based economies under certain circumstances.

SPONSORS: Sen. Rochefort, Dist 1; Sen. Lang, Dist 2; Sen. Gannon, Dist 23; Sen. Ward, Dist 8; Sen. McConkey, Dist 3; Sen. Long, Dist 20; Sen. McGough, Dist 11; Rep. Korzen, Coos 7; Rep. Peternel, Carr. 6

COMMITTEE: Health and Human Services

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ANALYSIS

 This bill provides that any hospital located in an economically distressed community that conducts a workforce reduction affecting more than 10 employees in a single department within a specified period shall be subject to a temporary freeze on certain executive compensation. The bill provides for enforcement by the charitable trusts unit of the department of justice.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-3261

 05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT limiting hospital executive compensation in communities designated as distressed place-based economies under certain circumstances.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Statement of Purpose and Findings. The general court finds that:

 I. New Hampshire's hospitals-particularly those located in economically distressed regions-serve as essential public health anchors and major local employers. Their stability is critical to the health and economic wellbeing of the communities they serve.

 II. Investigative reporting in the Caledonian Record and InDepthNH.com has highlighted significant workforce reductions conducted by certain New Hampshire hospitals. These reductions have included layoffs exceeding 10 employees in departments despite continued growth or insulation of executive compensation packages.

 III. Workforce reductions of this scale in distressed communities exacerbate health care access problems, worsen staffing shortages, and destabilize local economies already vulnerable to employment loss and declining population trends.

 IV. Hospitals that accept New Hampshire Medicaid funds have heightened obligations to ensure that public dollars and charitable assets are used in a manner consistent with their mission and fiduciary duties. Allowing executive compensation to rise during periods of major staff reductions undermines public trust and may constitute misuse of charitable resources.

 V. The New Hampshire attorney general's charitable trust unit has unique statutory responsibility to ensure fidelity to charitable purpose, prevent misuse of charitable assets, and protect the public interest in the operation of charitable health care institutions.

 VI. To ensure accountability, fairness, and responsible stewardship of charitable and public resources, the general court finds it necessary to temporarily freeze C-suite executive compensation following major workforce reductions and to provide strong enforcement authority, including license revocation or receivership where warranted.

 2 New Chapter; Hospital Executive Compensation Accountability in Distressed Communities. Amend RSA by inserting after chapter 151-J the following new chapter:

CHAPTER 151-K

HOSPITAL EXECUTIVE COMPENSATION ACCOUNTABILITY IN DISTRESSED COMMUNITIES

 151-K:1 Definitions. In this chapter: 

 I. "Hospital" means any facility licensed under RSA 151:2, I(d), that accepts New Hampshire Medicaid payments.

 II. "C-suite executive" means the chief executive officer, president, chief operating officer, chief financial officer, chief medical officer, chief nursing officer, chief quality officer, or any senior leader designated by the hospital's governing board.

 III. "Compensation" includes salary, bonuses, incentive pay, retention or severance packages, deferred compensation, fringe benefits, allowances, and any other remuneration.

 IV. "Distressed place-based economy" means any municipality or region designated as economically distressed pursuant to RSA 162-U or by the department of business and economic affairs, the U.S. Economic Development Administration, or any successor program.

 V. "Workforce reduction" means the involuntary termination, layoff, or reduction in force of more than 10 employees in a single department, within any 6-month period.

 151-K:2 Compensation Freeze. 

 I. Any hospital located in a distressed place-based economy that conducts a workforce reduction affecting more than 10 employees in a single department within any 6-month period shall be subject to an 18-month freeze on C-suite e