senate Bill S5815

Amended

Authorizes the Westchester health care corporation to enter into contracts and arrangements providing for the creation and operation of a delivery system network

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 17 / Jun / 2013
    • REFERRED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1549
  • 21 / Jun / 2013
    • RECOMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 28 / Jan / 2014
    • AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 28 / Jan / 2014
    • PRINT NUMBER 5815A

Summary

Authorizes the Westchester health care corporation to enter into contracts and arrangements providing for the creation and operation of a delivery system network.

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Bill Details

See Assembly Version of this Bill:
A8034
Versions:
S5815
S5815A
Legislative Cycle:
2013-2014
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
Public Authorities Law
Laws Affected:
Amd §§3301 & 3306, Pub Auth L

Sponsor Memo

BILL NUMBER:S5815

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.

FISCAL IMPLICATIONS:14one.

EFFECTIVE DATE:This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5815

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              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

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