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Title: Section 600.9 - Governing authority or operator

Effective Date


600.9 Governing authority or operator. (a) The governing authority or operator is the party responsible for the operation of a medical facility.

(b) The governing authority or operator shall mean:

(1) the policy making body of a government agency;

(2) the board of directors or trustees of a not-for-profit corporation;

(3) the officers, directors and stockholders of a business corporation; and

(4) the proprietor or proprietors of a proprietary medical facility.

(c) An individual, partnership or corporation which has not received establishment approval may not participate in the total gross income or net revenue of a medical facility.

(d)(1)Except as provided in section 405.3 of this Title, the governing authority or operator may not contract for management services with a party which has not received establishment approval.

(2) The criteria set forth in this paragraph shall be used in determining whether there has been an improper delegation to the management consultant by the governing authority or operator of its responsibilities:

(i) authority to hire or fire the administrator or other key management employees;

(ii) maintenance and control of the books and records;

(iii) authority over the disposition of assets and the incurring of liabilities on behalf of the facility;

(iv) the adoption and enforcement of policies regarding the operation of the facility.

(3) The criteria set forth in paragraph (2) of this subdivision shall not be the sole determining factors, but indicators to be considered with such other factors that may be pertinent in particular instances. Professional expertise shall be exercised in the utilization of the criteria. All of the listed indicia need not be present in a given instance for there to be an improper delegation of authority.


VOLUME D (Title 10)