CHAPTER 594b
MEDICAL FOUNDATIONS

Table of Contents

Sec. 33-182aa. Definitions.
Sec. 33-182bb. Organization. Filings. Notice re liquidation, termination, dissolution or cessation of operations. Medical foundation not to operate for profit.
Sec. 33-182cc. Applicability of chapter. Applicability to medical group clinic corporations.
Sec. 33-182dd. Limitation on business of medical foundation.
Sec. 33-182ee. Corporate name.
Sec. 33-182ff. Applicability of other law. Consolidation; merger.

      Sec. 33-182aa. Definitions. As used in this chapter:

      (1) "Certificate of incorporation" means a certificate of incorporation, as defined in section 33-1002, or any predecessor statute thereto;

      (2) "Hospital" means a nonstock corporation organized under chapter 602, or any predecessor statute thereto, or by special act and licensed as a hospital pursuant to chapter 368v;

      (3) "Health system" means a nonstock corporation organized under chapter 602, or any predecessor statute thereto, consisting of a parent corporation of one or more hospitals licensed pursuant to chapter 368v, and affiliated through governance, membership or some other means; and

      (4) "Provider" means a physician licensed under chapter 370, a chiropractor licensed under chapter 372, an optometrist licensed under chapter 380 or a podiatrist licensed under chapter 375.

      (P.A. 09-212, S. 1; P.A. 10-117, S. 53.)

      History: P.A. 09-212 effective July 1, 2009; P.A. 10-117 redefined "provider" in Subdiv. (4) to include licensed optometrist.

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      Sec. 33-182bb. Organization. Filings. Notice re liquidation, termination, dissolution or cessation of operations. Medical foundation not to operate for profit. (a) Any hospital or health system may organize and become a member of a medical foundation under the provisions of chapter 602 for the purpose of practicing medicine and providing health care services as a medical foundation through employees or agents of such medical foundation who are licensed pursuant to section 20-9 and through other providers. Such medical foundation shall be governed by a board of directors, which shall consist of an equal or greater number of providers than nonprovider employees of the members, in addition to such other directors as may be elected by the members.

      (b) Any medical foundation organized on or after July 1, 2009, shall file a copy of its certificate of incorporation and any amendments to its certificate of incorporation with the Office of Health Care Access division of the Department of Public Health not later than ten business days after the medical foundation files such certificate of incorporation or amendment with the Secretary of the State pursuant to chapter 602.

      (c) Any medical group clinic corporation formed under chapter 594 of the general statutes, revision of 1958, revised to 1995, which amends its certificate of incorporation pursuant to subsection (a) of section 33-182cc, shall file with the Office of Health Care Access division of the Department of Public Health a copy of its certificate of incorporation and any amendments to its certificate of incorporation, including any amendment to its certificate of incorporation that complies with the requirements of subsection (a) of section 33-182cc, not later than ten business days after the medical foundation files its certificate of incorporation or any amendments to its certificate of incorporation with the Secretary of the State.

      (d) Any medical foundation, regardless of when organized, shall file notice with the Office of Health Care Access division of the Department of Public Health and the Secretary of the State of its liquidation, termination, dissolution or cessation of operations not later than ten business days after a vote by its board of directors or members to take such action. Not later than ten business days after receiving a written request from the office, a medical foundation shall provide the office with a statement of its mission and a description of the services it provides, and a description of any significant change in its services during the preceding year as reported on the medical foundation's most recently filed Internal Revenue Service return of organization exempt from income tax form, or any replacement form adopted by the Internal Revenue Service.

      (e) A medical foundation shall not operate for profit and may operate at such locations as are designated by its members.

      (P.A. 09-212, S. 2; P.A. 10-179, S. 119.)

      History: P.A. 09-212 effective July 1, 2009; P.A. 10-179 amended Subsecs. (b) to (d) by replacing "Office of Health Care Access" with "Office of Health Care Access division of the Department of Public Health" and by making conforming changes in Subsec. (d).

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      Sec. 33-182cc. Applicability of chapter. Applicability to medical group clinic corporations. (a) This chapter shall not apply to any corporation, including a corporation described in section 33-182ff, organized for the purposes of practicing medicine and providing health care services to the public under any other law authorizing the provision of such services by a corporation that was valid at the time of such corporation's organization. Any such corporation may bring itself within the provisions of this chapter by amending its certificate of incorporation in such manner as to be consistent with the requirements of this chapter and by affirmatively stating in the amended certificate of incorporation that the members have elected to bring the corporation within the provisions of this chapter. To the extent that such corporation has a current provider agreement with the Department of Social Services, the provider agreement shall remain in effect regardless of any amendment to the corporation's certificate of incorporation.

      (b) A medical group clinic corporation formed under chapter 594 of the general statutes, revision of 1958, revised to 1995, and in existence on September 30, 1995, and continuing to operate as such a corporation from September 30, 1995, until July 1, 2009, shall continue to be duly organized if such corporation elects not later than July 1, 2010, to bring itself within the provisions of this chapter in the manner described in subsection (a) of this section.

      (P.A. 09-212, S. 3.)

      History: P.A. 09-212 effective July 1, 2009.

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      Sec. 33-182dd. Limitation on business of medical foundation. No medical foundation organized under this chapter shall engage in any business other than the rendering of health care services for which it was specifically incorporated, except that nothing in this chapter or in any other provision of law applicable to corporations shall be interpreted to prohibit such medical foundation from investing its funds in real estate, mortgages, stocks, bonds or any other type of investments, or from owning real or personal property incident to the rendering of professional services.

      (P.A. 09-212, S. 4.)

      History: P.A. 09-212 effective July 1, 2009.

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      Sec. 33-182ee. Corporate name. Notwithstanding the provisions of subsection (a) of section 33-1045, the corporate name of a medical foundation organized under this chapter shall contain the words "corporation" or the abbreviation "Inc." or "Corp.", and shall also contain either a word or words descriptive of the professional service to be rendered by the medical foundation or shall include a reference to the name of the member hospital or health system.

      (P.A. 09-212, S. 5.)

      History: P.A. 09-212 effective July 1, 2009.

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      Sec. 33-182ff. Applicability of other law. Consolidation; merger. Chapter 602 is applicable to a medical foundation organized pursuant to this chapter, except to the extent that any of the provisions of this chapter are interpreted to be in conflict with the provisions of said chapter 602, in which event the provisions of this chapter shall take precedence with respect to such medical foundation. A medical foundation organized under this chapter may consolidate or merge only with another medical foundation organized under this chapter or under chapter 594 of the general statutes, revision of 1958, revised to 1995, that is duly organized pursuant to this chapter, a professional corporation organized under chapter 594a, a limited liability company organized under chapter 613 or a partnership or limited liability partnership organized under chapter 614, if such corporation, company or partnership is organized to render the same specific professional services.

      (P.A. 09-212, S. 6.)

      History: P.A. 09-212 effective July 1, 2009.

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