SUBSTITUTE FOR

SENATE BILL NO. 238

                   (As amended June 26, 2003)

                                                                             A bill to amend 1980 PA 350, entitled                                             

"The nonprofit health care corporation reform act,"                         

by amending section 501 (MCL 550.1501).                                     

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 501.  (1) A health care corporation subject to this act                

2   may enter into contracts with health care facilities in Michigan

3   or health facilities in any other jurisdiction.  [It is the intent of the legislature that contracts with health facilities outside of Michigan expand access to health care without reducing access to Michigan licensed health facilities.]

4       (2) Contracts entered into under this section  shall be with               

5   health care facilities licensed in Michigan are subject to the              

6   provisions of sections 504 to 518.