French Public Health Code
In forceThe borrowing of public health institutions whose financial situation presents at least two of the following three characteristics is subject to the prior authorisation of the Director General of the Regional Health Agency:
- the financial independence ratio, which results from the ratio of outstanding long-term debt to permanent capital, exceeds 50%;
- the apparent duration of the debt exceeds ten years;
- the outstanding debt, in relation to its total income from all activities, is greater than 30%.
These criteria are calculated on the basis of the financial statements for the institution's last completed financial year, in accordance with the procedures defined by order of the ministers responsible for the budget, health and social security.
The authorisation procedure does not apply to loans with a term of less than twelve months.
The director of the institution submits his application for authorisation together with an updated multi-year global financing plan in order to assess the forecast impact of the proposed loan on the institution's financial equilibrium. If the institution is required to produce a recovery plan in accordance with article L. 6143-3, the Director must present an update of this plan, specifying the resulting debt reduction trajectory.
As soon as the application for authorisation is received, the Director General of the Regional Health Agency refers the matter to the Regional Director of Public Finance for his opinion, who has fifteen days to give his opinion. At the end of this period, the Director General of the Regional Health Agency has one week to notify the director of the establishment of his decision.
