Blumenthal v. Sharon Hosp.,
No. CV02008853755S (Conn. Super. Ct., June 3, 2003)

A small, nonprofit hospital was sold to a for-profit healthcare entity. This was the first sale to come under Connecticut's 1997 act entitled, "An Act Requiring Advance Review and Approval of the Sale of Nonprofit Healthcare Facilities to For-Profit Entities." Pursuant to the Act, the superior court must determine what is to be done with contributions made to the hospital that cannot be transferred to a for-profit entity because of restrictions placed on the gift by the donor. The court employed the common law doctrine of cy pres, which allows the distribution of charitable contributions to other entities without the consent of the donor as long as the funds are distributed in a manner consistent with the original intent of the donor. The court transferred most of the funds, minus attorney's fees, to a community health foundation that serves the same area as the nonprofit hospital. The court found the goals of the foundation to be consistent with the intentions of the donors.