29 Del. C. § 2534: Moratorium on conversion transactions involving acute care hospitals [Expires July 1, 2028, pursuant to 85 Del. Laws, c. 350, § 5].

(a) For purposes of this section, a “change of control transaction” means to acquire, directly, indirectly, or acting through 1 or more affiliates, the power to direct the management, policies, or clinical practices of a nonprofit acute care hospital, whether through ownership of voting securities, by effecting a change in the composition of the board of directors, by contract or otherwise.

(b) A person, other than a charity or not-for-profit entity, may not enter into a change of control transaction or a not-for-profit healthcare conversion transaction involving a nonprofit acute care hospital. A transaction that violates this subsection is void and of no legal effect.

(c) A change of control transaction is presumed if any of the following apply to a person or entity, directly, indirectly, or acting through 1 or more affiliates:

(1) The person or entity owns, controls, or holds with the power to vote, or holds proxies representing 25% or more of any class of voting securities or membership interests in the hospital or in any entity through which the hospital’s licensed inpatient or emergency services are conducted.

(2) The person or entity has the contractual or governance right to appoint, remove, or approve 1 or more members of the hospital’s board of directors or governing body, or 1 or more officers with executive authority over hospital operations, finances, or clinical services.

(3) The person or entity has the contractual right to withhold consent or exercise a veto over material operational, financial, or strategic decisions of the hospital, including changes in service lines, capital expenditures, or executive compensation.

(d) This section applies to a transaction that has not closed before July 20, 2026. A transaction is closed when it is fully executed and effective.

(e) The Attorney General may seek injunctive relief and pursue any other remedy available under this subchapter or at common law to enforce this section. Any remedy available under this section is cumulative with, and not in substitution for, any other remedy available under this subchapter or any other provision of law.

(f) The expiration of this section does not limit any enforcement action commenced prior to the expiration.