Case Details

Issues

Attorney General Has Authority To Review Acquisition Of Non-profit Hospitals

Filing State

KS

Court

Kansas District Court

Year

2003

Citation

Health Midwest v. Kline, No. 02-CV-08043 (Dist. Ct., Kansas 2003)

Resolution

A for-profit corporation sought to acquire a group of Kansas non-profit hospitals. The Attorney General challenged the transaction on a number of grounds. The court upheld only the AG’s challenge to the split of charitable assets to be placed in a charitable foundation, holding that 20 percent of the assets should be in a Kansas foundation, with 80 percent in Missouri.

Case Description

A for-profit corporation sought to acquire a group of Kansas non-profit hospitals. The Attorney General challenged the transaction on a number of grounds. The court upheld only the AG’s challenge to the split of charitable assets to be placed in a charitable foundation, holding that 20 percent of the assets should be in a Kansas foundation, with 80 percent in Missouri. “The Attorney General’s common law authority to prohibit or place conditions on the merger or sale of assets located in Kansas, is limited to rebutting the presumption of good faith afforded to the boards of the hospitals.”