Authorizes the Westchester health care corporation to enter into contracts and arrangements providing for the creation and operation of a delivery system network.
TITLE OF BILL: An act to amend the public authorities law, in relation to authorizing the Westchester health care corporation to enter into agreements for the creation and operation of a health care delivery system network
PURPOSE OR GENERAL IDEA OF BILL: To clarify that Westchester Health Care Corporation may exercise its general and special powers regardless of whether such exercise might have an impact on competition.
SUMMARY OF SPECIFIC PROVISIONS: Section one adds a new subsection 6 to § 3306 of the Public Authorities Law to clarify that in carrying out its health care purposes, the Westchester Health Care Corporation (WHCC) may engage in arrangements, contracts, information sharing, and activities with public or private entities and individuals, including joint ventures and joint negotiations with physicians, hospitals and payors. Such negotiations may result in separate or combined agreements, leases and/or activities involving delivery system network creation and operation that may displace competition and might otherwise be considered violations of state Or federal antitrust laws. This provision provides the necessary legislative declaration for the activities of the corporation and of the private entities and individuals with which it collaborates, to be immunized from liability under federal and state antitrust laws.
Section two provides the act shall take effect immediately.
JUSTIFICATION: The WHCC, created under the Public Authorities Law, assumed responsibility for operation of the Westchester County Medical Center -several facilities previously operated by Westchester County. WHCC's facilities provide an extensive range of acute care and ambulatory services to the indigent population in Westchester County including a significant percentage of the Medicaid discharges. As a free-standing public healthcare entity, WHCC faces unique challenges as it seeks to carry out its mission as a safety-net facility. In particular, its ability to collaborate with private entities and individuals is clear in the general and special powers granted to it under Public Authorities Law § 3404 and 3405. However, in a recent Supreme Court decision FTC v Phoebe Putney Health System, Inc, the Court held that in order for state action immunity to apply the state must clearly articulate and affirmatively express a policy to displace competition. Therefore, WHCC seeks to clarify the state's intention that such collaborations may be carried out regardless of whether they displace competition and may otherwise be considered violations of state or federal antitrust laws.
LEGISLATIVE HISTORY:New bill.
EFFECTIVE DATE:This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5815 2013-2014 Regular Sessions IN SENATE June 17, 2013 ___________Introduced by Sen. BALL -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the public authorities law, in relation to authorizing the Westchester health care corporation to enter into agreements for the creation and operation of a health care delivery system network THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3306 of the public authorities law is amended by adding a new subdivision 8 to read as follows: 8. IN THE EXERCISE OF THE FOREGOING SPECIAL POWERS ESTABLISHED IN THIS SECTION AND THE GENERAL POWERS SET FORTH IN SECTION THIRTY-FOUR HUNDRED FOUR OF THIS ARTICLE, THE CORPORATION IS AUTHORIZED, IN CARRYING OUT ITS HEALTHCARE PURPOSES, TO ENGAGE IN ARRANGEMENTS, CONTRACTS, INFORMATION SHARING AND ACTIVITIES WITH PUBLIC OR PRIVATE ENTITIES AND INDIVIDUALS, INCLUDING WITHOUT LIMITATION: JOINT VENTURES; JOINT NEGOTIATIONS WITH PHYSICIANS, HOSPITALS AND PAYORS, WHETHER SUCH NEGOTIATIONS RESULT IN SEPARATE OR COMBINED AGREEMENTS; LEASES; AND/OR AGREEMENTS WHICH INVOLVE DELIVERY SYSTEM NETWORK CREATION AND OPERATION, IRRESPECTIVE OF THE COMPETITIVE CONSEQUENCES OF THE FOREGOING COLLABORATIVE ACTIVITIES, AND NOTWITHSTANDING THAT THEY MAY HAVE THE EFFECT OF DISPLACING COMPETITION IN THE PROVISION OF HOSPITAL, PHYSICIAN OR OTHER HEALTHCARE-RELATED SERVICES, SUCH THAT THE CORPORATION AND THE PRIVATE ENTITIES AND INDI- VIDUALS WITH WHICH IT COLLABORATES SHALL BE IMMUNIZED FROM LIABILITY UNDER THE FEDERAL AND STATE ANTITRUST LAWS. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11518-01-3