Theresa L.M. Man
Ministry of Health Revokes its Hospital Naming Directive
On December 18, 2019, the Deputy Premier and Minister of Health announced that the hospital naming directive previously issued in October 2017, discussed in the October 2017 Charity and NFP Law Update, would be revoked so that hospitals in Ontario will no longer be required to obtain approval from the Minister of Health prior to adopting a new corporate or business name. However, recognizing that naming opportunities are key in securing donations for hospitals and hospital foundations and also that corporate or business names must respect the interests of local communities, the Ontario government will require hospitals to abide by certain expectations in order to help hospitals secure donations. The expectations are explained in a backgrounder released by the Ministry:
- Each hospital should have in place a naming policy to ensure a consistent approach to the adoption of corporate and business names.
- Meaningful consultation with stakeholders and the community concerning the adoption of a proposed name is an essential step in determining whether to adopt a new corporate or business name.
- A hospital corporation and business names are valuable assets to the hospital and community. A decision to adopt a new corporate or business name in recognition of philanthropy should be made where the level of philanthropy corresponds with the value of that asset.
- Any agreement concerning the adoption of a corporation or business name should not include a contractual term to the effect that a hospital will use a name indefinitely.
- Hospitals will continue to provide the ministry with notice of the anticipated adoption of a new corporate or business name.
In this regard, hospitals and hospital foundations should review their fundraising policies to ensure they are in compliance with the new expectations of the Ministry of Health.
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