In reviewing a proposed nonprofit hospital conversion transaction, the attorney general (and the district court as necessary and applicable), shall consider:
Terms Used In Idaho Code 48-1506
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- person: includes a corporation as well as a natural person;
Idaho Code 73-114
(1) Whether the nonprofit hospital will receive fair market value for its charitable trust assets;
(2) Whether the fair market value of the nonprofit hospital’s assets to be transferred has been affected by the actions of the parties in a manner that improperly causes the fair market value of the assets to decrease;
(3) Whether the proceeds of the proposed nonprofit hospital conversion transaction will be used consistent with the trust under which the assets are held by the nonprofit hospital and whether the proceeds will be controlled as funds independently of the acquiring or related entities;
(4) Whether the governing body of the nonprofit hospital exercised due diligence in deciding to dispose of the nonprofit hospital’s assets, selecting the acquiring entity, and negotiating the terms and conditions of the disposition;
(5) Whether the nonprofit hospital conversion transaction will result in improper private inurement to any person as set forth in section 48-1511, Idaho Code; and
(6) Whether the terms of any management or services contract negotiated in conjunction with the proposed nonprofit hospital conversion transaction are reasonable.