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

1 Co-sponsor

• George Latimer

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

To clarify that Westchester Health Care Corporation (WHCC) may exercise its general and special powers regardless of whether such exercise might have an impact on competition.

Summary of provisions

Section one adds a new subdivision 8 to section 3306 of the Public Authorities Law to clarify that in carrying out its health care purposes, Westchester Health Care Corporation (WHCC) may engage in certain collaborative activities. This provision provides the necessary legislative declaration for the activities of WHCC, and of the private entities and individuals with which it collaborates, to be immunized from liability under federal and state antitrust laws.

Section two establishes the effective date.

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 the 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

2013-14: S.5815-A referred to rules in 2013 and referred to corporations, authorities and commissions in 2014; same as A.8034-A (Abinanti)

Fiscal implications

None

Effective date

This act shall take effect immediately.