S T A T E   O F   N E W   Y O R K
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                                 8034--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 17, 2013
                               ___________

Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions -- recommitted to the
  Committee  on  Corporations, Authorities and Commissions in accordance
  with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

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 3301 of the public authorities law is  amended  by
adding a new subdivision 6 to read as follows:
  6.  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11518-03-4
              

A. 8034--A                          2

ACTIVITIES  CONSISTENT  WITH  ITS  HEALTH CARE PURPOSES, NOTWITHSTANDING
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 EIGHT OF  SECTION  THIRTY-THREE  HUNDRED
SIX  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 3306 of the public authorities law is amended by adding a
new subdivision 8 to read as follows:
  8.  (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-THREE HUNDRED FIVE  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 SIX OF SECTION THIRTY-
THREE 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
UNDER THE FEDERAL AND STATE ANTITRUST LAWS.
  (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.
  S 3. This act shall take effect immediately.