This bill expands the certificate of need requirement to include certain sale or lease agreements involving hospitals. Specifically, it prohibits entities or individuals with ownership interests in hospitals from entering into agreements with real estate investment trusts (REITs) for the sale or lease of hospital property unless they have applied for and received a certificate of need from the Department of Health. The Department will assess whether the terms of the agreement could jeopardize public health or the hospital's long-term financial stability, taking into account the applicant's work experience related to the agreement.

Additionally, the bill mandates that any sale or lease agreement with a REIT must utilize a standard form developed by the Department of Health. This form will include provisions that allow for the reclamation of funds if performance metrics are not met, require hospital owners to prioritize offers from lessees if the hospital is for sale, and permit reduced rental payments during financial instability. Furthermore, entities or individuals with ownership interests in hospitals that enter into lease agreements with REITs will be required to submit annual financial statements detailing the costs associated with the lease to the Department of Health.