Public, nonprofit hospitals and health care facilities may be operated by regional health care authorities that are created pursuant to the "Health Care Authorities Act of 1982." The Health Care Authorities Act allows the creation of a new health care authority that is derived from an existing health care authority, but does not specify any procedural steps for taking this action. This bill would allow a county or municipality to approve the incorporation of a new health care authority to serve an area that is already within an existing health care authority. Other counties or municipalities in the existing health care authority would be required to cooperate with the separation of a new health care authority from the existing authority. This bill would require the boards of directors of the original health care authority and the newly-established health care authority to negotiate a plan of separation to operate their respective health care authorities, including the transfer of health care facilities to the new authority and a fair division of existing liabilities and assets. If the two authorities are unable to reach a separation agreement, this bill further provides for binding arbitration to achieve an agreement under the jurisdiction of the judge of probate.