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

                                  2647

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 27, 2015
                               ___________

Introduced  by  Sens.  RANZENHOFER,  GALLIVAN  -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Corpo-
  rations, 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

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

S. 2647                             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-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.