House Bill No. 5165 mandates an evaluation by the Commissioner of Public Health to determine if the Attorney General should be authorized to petition the Superior Court for the appointment of a receiver to manage hospitals that are in financial distress or operational crisis. The bill defines a hospital in distress as one that has filed for bankruptcy or meets at least three specific criteria, such as receiving a negative going concern opinion from auditors, being significantly overdue on payments to public entities, defaulting on bond contracts, failing to pay wages for two consecutive periods, or having its license revoked by the Commissioner of Public Health or the Centers for Medicare and Medicaid Services.

The bill requires the Commissioner to report the findings of this evaluation to the relevant joint standing committee of the General Assembly by October 1, 2027. The new legal language introduced in this bill includes the definition of a hospital in distress and the requirement for the evaluation and reporting process. There are no deletions from current law, and the fiscal impact of the bill is noted as none, as the Department of Public Health has the necessary expertise to conduct the evaluation. House Amendment "A" made clarifying changes but did not alter the fiscal implications.