Source: https://www.nysenate.gov/legislation/bills/2013/S4624/amendment/A
Timestamp: 2016-10-22 19:49:52
Document Index: 12795528

Matched Legal Cases: ['§3405', '§ 3405', '§ 3404', '§  3401', '§  3405', '§ 3404']

NY State Senate Bill S4624A
senate Bill S4624A Signed By Governor 2013-2014 Legislative Session Authorizes the Nassau health care corporation to enter into contracts and arrangements providing for the creation and operation of a delivery system network
Via A7993 - Signed by Governor do you support this legislation?
returned to assemblypassed senate3rd reading cal.1487substituted for s4624a
substituted by a7993aordered to third reading cal.1487committee discharged and committed to rules
print number 4624aamend and recommit to corporations, authorities and commissions
Jun 20, 2013 - floor Vote A7993A 63
Jun 20, 2013 - Rules committee Vote S4624A 25
Original A (Active) Original A (Active) S4624 - Details
A7993A Law Section:
Amd §3405, Pub Auth L
S4624 - Summary
Authorizes the Nassau health care corporation to enter into contracts and arrangements providing for the creation and operation of a health care delivery system network. S4624 - Sponsor Memo
BILL NUMBER:S4624
relation to authorizing the Nassau health care corporation to enter
into agreements for the creation and operation of a health care
delivery system network
PURPOSE:  To clarify that Nassau Health Care Corporation may exercise
its general and special powers regardless of whether such exercise
might have an impact on competition.
Section one adds a new subsection 10 to § 3405 of the Public
Authorities Law to clarify that in carrying out its health care
purposes, the Nassau Health Care Corporation (NHCC) 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 NHCC, created under the Public Authorities Law,
assumed responsibility for operation of Nassau University Medical
Center (NUMC), a general hospital, in September of 1999. Likewise NUMC
assumed responsibility for operation of the A. Holly Patterson
Extended Care Facility (AHP), a skilled nursing facility and several
Community Health Centers (CHCs). All such facilities had previously
been operated by Nassau County. NHCC's facilities provide an extensive
range of acute care, nursing home, and ambulatory services to an
indigent population in Nassau County.  NUMC provides more than 50% of
the Medicaid discharges in Nassau County and is the primary provider
of ambulatory care to the County's Medicaid and indigent population.
As a free-standing public healthcare entity, NHCC 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,
NHCC 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
S4624 - Bill Text
the Nassau health care corporation to enter into  agreements  for  the
creation and operation of a health care delivery system network
Section 1. Section 3405 of the public authorities law  is  amended  by
10.  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 TITLE, 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 NEGOTI-
ATIONS 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,  IRRESPEC-
TIVE  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  INDIVIDUALS WITH WHICH IT COLLABORATES SHALL BE IMMUNIZED
FROM LIABILITY UNDER THE FEDERAL AND STATE ANTITRUST LAWS.
LBD10327-01-3
S4624A (ACTIVE) - Details
S4624A (ACTIVE) - Summary
Authorizes the Nassau health care corporation to enter into contracts and arrangements providing for the creation and operation of a health care delivery system network. S4624A (ACTIVE) - Sponsor Memo
BILL NUMBER:S4624A
relation to authorizing the Nassau health care  corporation  to  enter
into  agreements  for  the  creation  and  operation  of a health care
PURPOSE:  To clarify that Nassau Health Care Corporation may  exercise
its  general  and  special  powers regardless of whether such exercise
Section one adds a new subsection  three  to  §  3401  of  the  Public
Authorities   Law   to   provide  further  information  regarding  the
legislative purpose and findings. This provision provides  that  as  a
free-standing  public  health  care  provider,  the Nassau Health Care
Corporation (NHCC) is at a competitive disadvantage  in  the  emerging
health  care  environment,  which  jeopardizes  its ability to provide
quality health care services  to  medically  underserved  populations.
Thus,  the state authorizes the corporation to engage in collaborative
activities consistent with its health care purposes.
Section two adds  a  new  subsection  10  to  §  3405  of  the  Public
Authorities  Law  to  clarify  that  in  carrying  out its health care
purposes, the NHCC may engage in arrangements, contracts,  information sharing,  and  other  collaborative  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. The corporation and  its  collaborators  shall  remain
subject  to  generally applicable provisions of the Public Health Law,
notwithstanding any provisions herein.  The corporation also must file
an annual report with the Department of Health concerning  the  impact
of the collaborations authorized under this section and concerning the
impact  on  reimbursement  to  the corporation's facilities by managed
care organizations. The Department shall then have 60 days to  request
that  the  corporation  make  changes  to  its policies to further the
JUSTIFICATION:  The NHCC, created under the  Public  Authorities  Law,
assumed  responsibility  for  operation  of  Nassau University Medical
assumed  responsibility  for  operation  of  the  A.  Holly  Patterson
Extended  Care  Facility (AHP), a skilled nursing facility and several
Community Health Centers (CHCs). All such  facilities  had  previously
range  of  acute  care,  nursing  home,  and ambulatory services to an
indigent population in Nassau County. NUMC provides more than  50%  of
the  Medicaid  discharges in Nassau County and is the primary provider
of ambulatory care to the County's Medicaid and  indigent  population.
As  a  free-standing  public  healthcare  entity,  NHCC  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 affirmative ly express a policy
to displace competition. Therefore, NHCC 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.
S4624A (ACTIVE) - Bill Text
4624--A
the  Nassau  health  care corporation to enter into agreements for the
Section  1.   Section 3401 of the public authorities law is amended by
3. AS A FREE-STANDING PUBLIC HEALTH CARE PROVIDER, THE CORPORATION  IS
AT  A  COMPETITIVE  DISADVANTAGE IN THE CURRENT AND EMERGING HEALTH CARE
ENVIRONMENT, YET IT CANNOT BECOME PART OF A LARGER SYSTEM  OF  CORPORATE
ENTITIES WHILE MAINTAINING ITS PUBLIC STATUS. SIGNIFICANT INVESTMENTS IN
THE  PUBLIC  ASSETS  OF  THE CORPORATION AND ITS EFFORTS TO PROVIDE HIGH
QUALITY HEALTH CARE SERVICES TO MEDICALLY  UNDERSERVED  POPULATIONS  ARE
JEOPARDIZED  BY THE CORPORATION'S INABILITY TO COMPETE ON ITS OWN AND BY
POTENTIAL LIMITS ON ITS ABILITY TO COLLABORATE  WITH  OTHER  PUBLIC  AND
PRIVATE  PROVIDERS,  ENTITIES  AND INDIVIDUALS. THE STATE FINDS THAT THE
BENEFITS OF COLLABORATION BY THE CORPORATION OUTWEIGH ANY ADVERSE IMPACT
ON COMPETITION. THE BENEFITS OF THE CORPORATION'S COLLABORATIVE  EFFORTS
INCLUDE  PRESERVING  AND  EXPANDING  NEEDED  HEALTH CARE SERVICES IN ITS
PRIMARY SERVICE AREA; CONSOLIDATING UNNEEDED OR DUPLICATIVE HEALTH  CARE
SERVICES; ENHANCING THE QUALITY OF, AND EXPANDING ACCESS TO, HEALTH CARE
DELIVERED  TO  MEDICALLY  UNDERSERVED  POPULATIONS;  LOWERING  COSTS AND
IMPROVING THE EFFICIENCY OF THE HEALTH CARE SERVICES  IT  DELIVERS;  AND
ACHIEVING  IMPROVED REIMBURSEMENT FROM NON-GOVERNMENTAL PAYORS. BASED ON
THE FINDINGS CONTAINED IN THIS SECTION, THE STATE  HEREBY  AFFIRMATIVELY
EXPRESSES  A  POLICY TO ALLOW THE CORPORATION TO ENGAGE IN COLLABORATIVE
ACTIVITIES CONSISTENT WITH ITS  HEALTH  CARE  PURPOSES,  NOTWITHSTANDING
LBD10327-03-3
S. 4624--A                          2
THAT  THOSE COLLABORATIONS MAY HAVE THE EFFECT OF DISPLACING COMPETITION
IN THE PROVISION OF HOSPITAL, PHYSICIAN  OR  OTHER  HEALTH  CARE-RELATED
SERVICES.   WITH RESPECT TO THE COLLABORATIVE ACTIVITIES CONTEMPLATED IN
THIS  SECTION AND IN SUBDIVISION TEN OF SECTION THIRTY-FOUR HUNDRED FIVE
OF THIS TITLE, THE CORPORATION AND THE PUBLIC OR  PRIVATE  ENTITIES  AND
INDIVIDUALS WITH WHICH IT COLLABORATES SHALL BE IMMUNIZED FROM LIABILITY
UNDER THE FEDERAL AND STATE ANTITRUST LAWS.
S 2. Section 3405 of the public authorities law is amended by adding a
10.  (A) IN CARRYING OUT ITS HEALTH CARE PURPOSES THROUGH THE EXERCISE
OF THE SPECIAL POWERS EXERCISED PURSUANT TO THIS SECTION AND THE GENERAL
POWERS EXERCISED PURSUANT TO SECTION THIRTY-FOUR HUNDRED  FOUR  OF  THIS
TITLE,   THE  CORPORATION  IS  AUTHORIZED  TO  ENGAGE  IN  ARRANGEMENTS,
CONTRACTS, INFORMATION SHARING AND OTHER COLLABORATIVE  ACTIVITIES  WITH
PUBLIC  OR  PRIVATE ENTITIES AND INDIVIDUALS IRRESPECTIVE OF THE COMPET-
ITIVE CONSEQUENCES OF THESE ACTIVITIES AND  NOTWITHSTANDING  THAT  THESE
ACTIVITIES  MAY  HAVE  THE  EFFECT  OF  DISPLACING  COMPETITION  IN  THE
PROVISION OF HOSPITAL, PHYSICIAN, OR OTHER HEALTH CARE-RELATED SERVICES.
THESE COLLABORATIVE ACTIVITIES MAY  INCLUDE  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, PROVIDED THAT, THE CORPORATION SHALL EXERCISE STATE OVER-
SIGHT  BY  DETERMINING  WHETHER PARTICULAR COLLABORATIONS WITH PUBLIC OR
PRIVATE ENTITIES AND INDIVIDUALS FURTHER THE INTERESTS OF THE  STATE  AS
SET  FORTH IN THIS SUBDIVISION AND IN SUBDIVISION THREE OF SECTION THIR-
TY-FOUR HUNDRED ONE OF THIS TITLE. IN  UNDERTAKING  THESE  COLLABORATIVE
ACTIVITIES, THE CORPORATION AND THE PUBLIC OR PRIVATE ENTITIES AND INDI-
VIDUALS  WITH  WHICH  IT  COLLABORATES SHALL BE IMMUNIZED FROM LIABILITY
(B) NOTWITHSTANDING THE PROVISIONS OF THIS  SECTION,  THE  CORPORATION
AND  ITS  COLLABORATORS  SHALL  REMAIN  SUBJECT  TO GENERALLY APPLICABLE
PROVISIONS OF THE PUBLIC HEALTH LAW AND REGULATIONS THEREUNDER. IN ADDI-
TION, THE CORPORATION SHALL FILE AN ANNUAL REPORT WITH THE STATE DEPART-
MENT OF HEALTH, AS ADDITIONAL STATE OVERSIGHT, CONCERNING THE IMPACT  OF
THE  COLLABORATIONS  AUTHORIZED UNDER THIS SECTION ON THE ADVANTAGES AND
DISADVANTAGES IDENTIFIED BY THE DEPARTMENT OF HEALTH IN ITS REQUEST  FOR
APPLICATIONS  FOR  HEAL NY PHASE 21, ENTITLED "RESTRUCTURING INITIATIVES
IN MEDICAID REDESIGN," AND CONCERNING THE IMPACT ON REIMBURSEMENT TO THE
CORPORATION'S FACILITIES BY MANAGED CARE ORGANIZATIONS WITH  RESPECT  TO
COMMERCIAL  PLAN  MEMBERS, INCLUDING THE EXTENT TO WHICH RATES HAVE BEEN
NEGOTIATED THAT MORE FAIRLY COMPENSATE THE CORPORATION'S FACILITIES  FOR
THE   COST  OF  PROVIDING  SERVICES  TO  COMMERCIAL  ENROLLEES,  WITHOUT
CROSS-SUBSIDY FROM MEDICAID OR OTHER GOVERNMENTAL PROGRAMS. IN  RESPONSE
TO  THE REPORT, THE DEPARTMENT OF HEALTH SHALL HAVE SIXTY DAYS AFTER THE
REPORT HAS BEEN FILED TO REQUEST, IN WRITING, THAT THE CORPORATION  MAKE
CHANGES  TO  ITS  POLICIES  TO ENSURE THAT THE COLLABORATIONS AUTHORIZED
UNDER THIS SECTION FURTHER THE INTERESTS OF THE STATE.