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Subtitle H—Limitation of Antitrust
Recovery for Certain Hospital
Joint Ventures
SEC. 341. PURPOSE.
The purpose of this subtitle is to encourage coopera-
tion among hospitals in order to contain costs and achieve
a more efficient health care delivery system through the
elimination of unnecessary duplication and proliferation of
expensive high technology equipment, medical services, or
ancillary services.
SEC. 342. DEFINITIONS.
For the purposes of this subtitle:
(1) The term ‘‘antitrust laws’’ has the meaning
given it in subsection (a) of the first section of the
Clayton Act (15 U.S.C. 12(a)), except that such
term includes—
(A) section 5 of the Federal Trade Com-
mission Act (15 U.S.C. 45) to the extent such
section applies to unfair methods of competi-
tion, and
(B) any State law similar to the antitrust
laws.
(2) The term ‘‘high technology equipment’’
means equipment and devices utilized in medical
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care, and the technical support systems for them,
that—
(A) have acquisition costs greater than
$1,000,000 or annual operating costs greater
than $500,000, and
(B) use technologies with respect to which
there is a reasonable expectation that shared
ownership will avoid a significant degree of ac-
tual or anticipated excess capacity of service in
the geographical area to be served.
(3) The term ‘‘medical services’’ means services
that are involved in providing medical care to pa-
tients and that—
(A) have annual operating costs greater
than $1,000,000, and
(B) with respect to which there is a rea-
sonable expectation that shared ownership will
avoid a significant degree of the actual or an-
ticipated excess capacity of such services in the
geographical area to be served,
and may include mobile services.
(4) The term ‘‘ancillary services’’ means sup-
port functions associated with operating a hospital
(laundry, billing, patient transportation, data proc-
essing, and other similar services) the predominant
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function of which does not involve the provision of
medical treatment to patients.
(5) The term ‘‘hospital’’ means a hospital
that—
(A) has entered into, and has in effect a
participation agreement under section 1866(a)
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
1395cc(a)), or
(B) has in effect a participation agreement
under title XIX of such Act (42 U.S.C. 1396 et
seq.) with the State in which the hospital is lo-
cated.
(6) The term ‘‘hospital joint venture’’ means an
agreement between 2 or more hospitals that is en-
tered into solely for the purpose of sharing in the
purchase or operation of high technology equipment,
medical services, or ancillary services, and that in-
volves substantial integration or financial risk-shar-
ing between the parties. The term excludes—
(A) exchanging information among com-
petitors relating to costs, sales, profitability,
prices, marketing, or distribution of any prod-
uct, process, or service that is not reasonably
required to carry out such agreement,
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(B) entering into any arrangement or en-
gaging in any other conduct to restrict, require,
or otherwise involve the marketing by any party
to such agreement of any product, process, or
service that is not reasonably required to carry
out such agreement, and
(C) entering into any arrangement or en-
gaging in any other conduct to restrict or re-
quire the participation by any party to such
agreement in conduct that is not reasonably re-
quired to carry out such agreement.
(7) The term ‘‘Attorney General’’ means the
Attorney General of the United States.
(8) The term ‘‘Secretary’’ means the Secretary
of Health and Human Services.
(9) The term ‘‘Commission’’ means the Federal
Trade Commission.
SEC. 343. LIMITATION ON DAMAGES FOR ANTITRUST VIO-
LATIONS.
Monetary recovery on a claim in any action brought
under the antitrust laws against a hospital that is a party
to a hospital joint venture shall be limited to actual dam-
ages if—
(1) the hospitals forming such venture meet the
notification requirements specified in section 344,
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(2) the claim results from conduct that is with-
in the scope of the notification filed under section
344, and
(3) the action is filed after such notification be-
comes effective pursuant to section 344(c).
SEC. 344. DISCLOSURE OF HOSPITAL JOINT VENTURE.
(a) WRITTEN NOTIFICATIONS; FILING.—Any hos-
pital that is a party to a hospital joint venture, acting on
the venture’s behalf, not later than 90 days after entering
into a written agreement to form the venture, or not later
than 90 days after, the date of the enactment of this Act,
whichever is later, may file simultaneously with the Attor-
ney General, the Secretary, and the Commission, a written
notification disclosing—
(1) the identities of the parties to the venture,
and
(2) the nature, objectives, and planned activity
of the venture.
Any hospital that is a party to a hospital joint venture,
acting on the venture’s behalf, may file additional disclo-
sure notifications pursuant to this section as are appro-
priate to extend the protections of section 343. In order
to maintain the protections of section 343, the venture,
not later than 90 days after a change in its membership
or its planned activity, shall file simultaneously with the
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Attorney General, the Secretary, and the Commission a
written notification disclosing such change.
(b) PUBLICATION; FEDERAL REGISTER; NOTICE.—
Not later than 30 days after receiving a notification filed
under subsection (a), the Secretary, after consultation
with the Attorney General and the Commission, shall pub-
lish in the Federal Register a notice with respect to the
hospital joint venture that identifies the parties to the ven-
ture and that describes the planned activity of the venture.
Prior to its publication, the contents of such notice shall
be made available to the parties to the venture.
(c) EFFECT OF THE NOTICE.—If with respect to a
notification filed under subsection (a) of this section, no-
tice is published in the Federal Register, then such notifi-
cation shall operate to convey the protections of section
343 as of the earlier of—
(1) the date of the publication of notice under
subsection (b), or
(2) if such notice is not so published within the
time required by subsection (b) of this section, after
the expiration of the 30-day period beginning on the
date that the Attorney General, the Secretary, or the
Commission receives the applicable information de-
scribed in subsection (a).
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(d) EXEMPTION; DISCLOSURE; INFORMATION.—Ex-
cept with respect to the information published pursuant
to subsection (b)—
(1) all information and documentary material
submitted as part of a notification filed pursuant to
this section, and
(2) all other information obtained by the Attor-
ney General, the Secretary, or the Commission in
the course of any investigation, administrative pro-
ceeding, or case, with respect to a potential violation
of the antitrust laws by the joint venture with re-
spect to which such notification was filed,
shall be exempt from disclosure under section 552 of title
5, United States Code, and shall not be made publicly
available by any agency of the United States to which such
section applies, except as relevant to a law enforcement
investigation or in a judicial or administrative proceeding
in which such information and material is subject to any
protective order.
(e) WITHDRAWAL
OF NOTIFICATION.—Any party
that files a notification pursuant to this section may with-
draw such notification before notice of the hospital joint
venture involved is published under subsection (b) of this
section. Any notification so withdrawn shall not be subject