S T A T E   O F   N E W   Y O R K
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                                  5254

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2015
                               ___________

Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
  Committee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law, in relation  to  authorizing
  the  Erie  county  medical center 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 3626 of the public authorities law  is  amended  by
adding a new subdivision 8 to read as follows:
  8.  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
EXPRESS A POLICY TO ALLOW THE CORPORATION  TO  ENGAGE  IN  COLLABORATIVE
ACTIVITIES  CONSISTENT  WITH  ITS  HEALTH CARE PURPOSES, NOTWITHSTANDING
THAT THOSE COLLABORATIONS MAY HAVE THE EFFECT OF DISPLACING  COMPETITION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07894-02-5
              

A. 5254                             2

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-SIX HUNDRED THIR-
TY-ONE 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 3631 of the public authorities law is amended by adding a
new subdivision 10 to read as follows:
  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-SIX HUNDRED THIRTY 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 EIGHT OF SECTION  THIR-
TY-SIX  HUNDRED TWENTY-SIX OF THIS TITLE. IN UNDERTAKING THESES COLLABO-
RATIVE ACTIVITIES, 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.
  (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.