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Steps in Evaluating a Change in Legal Entity Status

In evaluating whether a change in Lee Health’s legal structure would be best for the citizens of Lee County, the Lee Health Board of Directors must follow certain steps as outlined in the health system’s enabling legislation.

Significant work must be done to consider and weigh all implications of returning to a private nonprofit status. We must conduct appropriate due diligence to gather the facts and analyze the impacts of such a decision.

  • Step one: Elect to Conduct Evaluation
    • The Lee Health Board of Directors may elect by a majority vote to conduct an evaluation of the benefits to the residents of Lee County to convert Lee Health from its current legal status as a public nonprofit entity to a private nonprofit.
  • Step two: Evaluate Benefits of Conversion
    • In evaluating the potential benefits of a conversion, the Board of Directors must do the following things:
      • Contract with an experienced entity to conduct an evaluation and complete a report in 180 days
      • Conduct a public hearing 
      • Publish all related documents on its website
  • Step three: Best Interests of Residents
    • Within 120 days of the Board’s receipt of the final evaluation report, the Board must, by majority vote, determine whether the interests of the residents of the community are best served by converting the health system to a nonprofit entity.
  • Step four: Negotiate Agreement
    • Within 120 days of the Board’s determination that conversion is in the best interests of the residents of the community, the Board must negotiate, draft and complete a proposed agreement with the Lee County Commission that sets out the terms of the conversion. 
  • Step Five – Approval of Agreement
    • The Board of Directors may approve the agreement, by a majority vote plus one, in a publicly held meeting. Subsequently, the Lee County Board of Commissioners must also approve the agreement in a public meeting.