O.C.G.A.
O.C.G.A.

O.C.G.A. § 31-7-400 (2019)

Definitions

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
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As used in this article the term: (1) ‘‘Acquiring entity’’ means an individual, business corporation, general partnership, limited partnership, limited liability company,

limited liability partnership, joint venture, nonprofit corporation, hospital authority, or any other for profit or not for profit entity which is a purchaser or lessee of an acquisition. (2) ‘‘Acquisition’’ means a purchase or lease by an acquiring entity of the assets of a hospital which is owned, controlled, or operated by a nonprofit corporation and which meets one or more of the following conditions: (A) Constitutes a purchase or lease of 50 percent or more of the assets of a hospital having a permit under this chapter; or (B) Constitutes a purchase or lease which, when combined with one or more transfers between the same or related parties occurring within a five-year period, constitutes a purchase or lease of 50 percent or more of the assets of a hospital having a permit under this chapter; provided, however, that an acquisition does not include the restructuring of a hospital owned by a hospital authority involving a lease of assets to any not for profit or for profit entity which has a principal place of business located in the same county where the main campus of the hospital in question is located and which is not owned, in whole or in part, or controlled by any other for profit or not for profit entity whose principal place of business is located outside such county; provided, further, that an acquisition does not include a restructuring of a nonprofit health system involving the purchase or lease of the assets of a hospital controlled as of March 1, 1999, by the health system’s nonprofit parent corporation by another nonprofit entity which is both exempt from federal income taxation and controlled by the same nonprofit parent corporation. (3) ‘‘Attorney General’’ means the Attorney General of the State of Georgia or some other attorney employed in the Attorney General’s office and designated to perform the functions required by this article. (4) ‘‘Control’’ or ‘‘controlling interest’’ means ownership of 50 percent or more of the assets of the entity in question or the ability to influence significantly the operations or decisions of the entity in question. (5) ‘‘Disposition’’ means a sale or lease of the assets of a hospital which is owned, controlled, or operated by a nonprofit corporation to an acquiring entity which meets one or more of the following conditions: (A) Constitutes a sale or lease of 50 percent or more of the assets of a hospital having a permit under this chapter; or (B) Constitutes a sale or lease which, when combined with one or more transfers between the same or related parties occurring

within a five-year period, constitutes a sale or lease of 50 percent or more of the assets of a hospital having a permit under this chapter; provided, however, that a disposition does not include the restructuring of a hospital owned by a hospital authority involving a lease of assets to any not for profit or for profit entity which has a principal place of business located in the same county where the main campus of the hospital in question is located and which is not owned, in whole or in part, or controlled by any other for profit or not for profit entity whose principal place of business is located outside such county; provided, further, that a disposition does not include a restructuring of a nonprofit health system involving the sale or lease of the assets of a hospital controlled as of March 1, 1999, by the health system’s nonprofit parent corporation to another nonprofit entity which is both exempt from federal income taxation and controlled by the same nonprofit parent corporation. (6) ‘‘Family’’ means a spouse, child, or sibling. (7) ‘‘Financial interest’’ means the direct or indirect ownership of any assets or stock of any business. (8) ‘‘Hospital’’ means any institution classified and having a permit as a hospital from the Department of Community Health pursuant to this chapter and such department’s rules and regulations. (9) ‘‘Related party’’ means an individual, business corporation, general partnership, limited partnership, limited liability company, limited liability partnership, joint venture, nonprofit corporation, or any other for profit or not for profit entity that owns or controls, is owned or controlled by, or operates under common ownership or control with a party in question. (10) ‘‘Transaction’’ means an acquisition and disposition.

History

Code 1981, § 31-7-400, enacted by Ga. L. 1997, p. 1091, § 1; Ga. L. 1999, p. 850, § 1; Ga. L. 2008, p. 12, § 2-26/SB 433.

Annotations

Law reviews. - For annual survey

article on local government law, see 52 Mercer L. Rev. 341 (2000). For article, ‘‘Local Government Law,’’ see 53 Mercer L. Rev. 389 (2001).

JUDICIAL DECISIONS ‘‘Acquiring entity.’’ - County is included under the broad catch-all provision: ‘‘any other for profit or not for profit entity which is a purchaser or lessee of an acquisition.’’ Turpen v. Rabun County Bd. of Comm’rs, 245 Ga. App. 190, 537 S.E.2d 435 (2000). ‘‘Hospital.’’ - Paragraph (8) of O.C.G.A. § 31-7-400 cannot be construed

to mean that a nonprofit corporation with a hospital permit as of the date of an agreement to sell or as of the date of the original notice provided under the Hospital Acquisition Act, § 31-7-400 et seq., may simply turn in its permit to avoid application of the Act. For the remainder of the life of the proposed transaction or the public review process provided by the

Act, a hospital is a hospital for the purposes of the Act. Turpen v. Rabun County Bd. of Comm’rs, 245 Ga. App. 190, 537 S.E.2d 435 (2000).

Cited in Cobb Hospital, Inc. v. Department of Community Health, 825 S.E.2d 886, No. A18A2009, 2019 Ga. App. LEXIS 183 (2019).

Notes of Decisions
Cited in 9 cases, 1999–2020 · leading case: Turpen v. Rabun Cnty. Bd. of Commissioners, 537 S.E.2d 435 (Ga. Ct. App. 2000).
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Turpen v. Rabun Cnty. Bd. of Commissioners, 537 S.E.2d 435 (Ga. Ct. App. 2000). · cites it 36× “Citizens of Rabun County sued the county and Rabun County Hospital Authority to enjoin the county's purchase of a nonprofit hospital's assets on several grounds, including that the county failed to comply with the Hospital Acquisition Act, OCGA § 31-7-400 et seq. The trial court…”
Smith v. Northside Hosp., Inc., 807 S.E.2d 909 (Ga. 2017). · cites it 2× “; OCGA § 31-7-400 et seq. But putting aside Northside’s troubling suggestion that a hospital authority could truly “remove itself from the provision of healthcare services altogether [,] that is not what has happened here.”
Sparks v. Hosp. Auth., 526 S.E.2d 593 (Ga. Ct. App. 1999). · cites it 4× “This appeal presents questions of first impression concerning the construction of the Hospital Acquisition Act, OCGA §§ 31-7-400 through 31-7-412. For the following reasons, we conclude that the superior court erroneously interpreted the Act, and we reverse the court’s dismissal…”
Turpen v. Rabun Cnty. Bd. of Commissioners, 554 S.E.2d 727 (Ga. Ct. App. 2001). · cites it 2× “The trial court’s concern that Regions Bank be joined to protect its interest in bond repayment is now moot. We need not address, therefore, whether Regions Bank was an indispensable party to the citizens’ effort to “enjoin repayment of the bonds.”
Cobb Hosp., Inc. v. Emory-Adventist, Inc. (Ga. Ct. App. 2020). · cites it 8× “,1 declared null and void for violation of the Hospital Acquisition Act (“HAA”), OCGA § 31-7-400 et seq., and for an injunction to prevent the operation of Emory’s hospital at the location of the former Emory- Adventist Hospital.”
Cobb Hosp., Inc. d/b/a Wellstar Cobb Hosp. v. Georgia Dep't of Cmty. Health (Ga. Ct. App. 2019). · cites it 6× “4 Specifcially, Wellstar argued that: (1) Emory Healthcare’s failure to seek approval of its purchase of Emory-Adventist under the Hospital Acquisition Act (OCGA § 31-7-400 et seq.) rendered the transaction null and void and invalidated the existing CON; (2) the lack of a valid…”
St. Joseph Hosp., Augusta, Georgia, Inc. v. Health Mgmt. Assocs., Inc., 705 F.3d 1289 (11th Cir. 2013). “O.C.G.A. § 31-7-400 (2012) et seq. The parties to the transfer must notify the Attorney General of the terms of the transfer at least ninety days before it is to take place; 4 then, within sixty days after receiving notice, the Attorney General must hold a public hearing.”
Smith v. Northside Hosp., Inc (Ga. 2017). · cites it 2× “; OCGA § 31-7-400 et seq. But putting aside Northside’s troubling suggestion that a hospital authority could truly “remove itself from the provision of healthcare services altogether[,]” that is not what has happened here.”
St. Joseph Hosp., Augusta, Georgia, Inc. v. Health Mgmt. Assocs., Inc. (11th Cir. 2013). “O.C.G.A. § 31-7-400 (2012) et seq. The parties to 3 SJH sought bids for some of its other assets as well.”
— 31-7-400(1) — 1 case
Turpen v. Rabun Cnty. Bd. of Commissioners, 537 S.E.2d 435 (Ga. Ct. App. 2000). “Citizens of Rabun County sued the county and Rabun County Hospital Authority to enjoin the county's purchase of a nonprofit hospital's assets on several grounds, including that the county failed to comply with the Hospital Acquisition Act, OCGA § 31-7-400 et seq. The trial court…”
— 31-7-400(8) — 1 case
Turpen v. Rabun Cnty. Bd. of Commissioners, 537 S.E.2d 435 (Ga. Ct. App. 2000). “Citizens of Rabun County sued the county and Rabun County Hospital Authority to enjoin the county's purchase of a nonprofit hospital's assets on several grounds, including that the county failed to comply with the Hospital Acquisition Act, OCGA § 31-7-400 et seq. The trial court…”
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