House Bill No. 5165, also known as Special Act No. 26-29, mandates an evaluation of the appointment of a receiver to manage hospitals that are in financial distress or operational crisis. The bill defines a hospital in such a state as one that has either filed for bankruptcy or is experiencing at least three specific conditions, including receiving a negative going concern opinion from an auditor, owing significant past-due fees or taxes, being in default on a bond contract, failing to pay wages for two consecutive pay 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 of Public Health to assess whether the Attorney General should be authorized to petition the Superior Court for the appointment of a receiver for these hospitals. The Commissioner must report the findings of this evaluation to the relevant joint standing committee of the General Assembly by October 1, 2027. The bill does not include any deletions from current law but introduces new legal language to define the criteria for hospitals in distress and the evaluation process.