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Sparks v. The Hosp. Auth. of the City of Bremen and County of Haralson, Ga.

City/county hospital authority violated the Hospital Acquisition Act by transferring control over nonprofit hospital to a medical center without first disclosing the transaction to the state attorney general and holding public hearings on the transfer.

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This appeal presents questions of first impression concerning the construction of the Hospital Acquisition Act, OCGA § 31-7-400 through 31-7-412. For the following reasons, we conclude that the superior court erroneously interpreted the Act and we reverse the court’s dismissal of Sparks’ complaint.

The Hospital Authority of the City of Bremen and County of Haralson, Georgia, which owned and operated Higgins General Hospital in Bremen, negotiated an agreement with Tanner Medical Center transferring the control and operation of the hospital from the Authority to Tanner. Under the agreement, Tanner would lease most of the real property of the hospital, purchase most of the personal property, and operate the hospital. This transaction was subject to the Act, under which no purchase or lease of 50 percent or more of the assets of a nonprofit hospital may take place without notifying the Attorney General of Georgia at least 90 days before “consummation” of the transaction. OCGA § 31-7-400 2; 31-7-401.

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