What's happening
This bill authorizes the Westchester Health Care Corporation to collaborate with regional health providers on certain activities and grants antitrust immunity for those actions.
Why it matters
Facilitates regional collaboration. by allowing the Westchester Health Care Corporation to work jointly with hospitals and health providers across eight Hudson Valley counties, aiming to improve quality and access to health care for local residents—including those unable to pay.
Enables joint initiatives. such as a shared health IT platform, unified clinical quality standards, coordinated clinical services (especially with rural hospitals), and collective purchasing of medical supplies, which could lower costs and improve efficiency.
Grants targeted antitrust immunity. for these specific collaborative efforts, meaning providers can work together on these activities without fear of violating state or federal antitrust laws—potentially fostering more integrated and effective health care delivery.
Limits scope of immunity. by explicitly excluding activities not listed in the bill and any collaborations that would improperly restrict competition in labor markets, helping to safeguard against anti-competitive practices outside the bill’s intended focus.
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Who cares
Headline styles
Let Hospital Form Health Network
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1242
- Referred to corporations, authorities and commissions
- Print number 5880b
- Amend and recommit to rules
- Reported and committed to rules
- Print number 5880a
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allow Hospital Network Contracts
Assembly Floor Calendar · Sponsor Thomas Abinanti
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5880--B
2017-2018 Regular Sessions
IN SENATE
May 4, 2017
Introduced by Sen. MURPHY -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee and committed to the Committee on Rules -- 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 Assembly, 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. As set forth in section thirty-three hundred one of this title, the creation and operation of the Westchester County Health Care Corporation is for the benefit of the residents of the state of New York and the county of Westchester, including persons in need of health care services without the ability to pay, and is a state, county, and public purpose. The corporation has advised that it intends to engage in certain collaborative activities with and limited to, health care providers in the eight lower Hudson valley counties of Westchester, Rockland, Dutchess, Orange, Ulster, Putnam, Sullivan, and Delaware, as set forth in section thirty-three hundred one of this title, for the purpose of promoting, and only to the extent necessary to promote, improved quality of and access to health care services and improved clinical outcomes, consisting of: (a) development of a non-exclusive joint health information technology platform; (b) development of a joint set of clinical quality standards; (c) coordination and integration of clinical service to reduce redundancy and increase efficiency; (d) joint discussions with rural hospitals regarding the possibility of coordinating and integrat-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02218-09-7
S. 5880--B 2
ing clinical services; and (e) joint purchasing of services, supplies and equipment related to the provisions of health care services. To promote improved quality of and access to health care services and improved clinical outcomes, and consistent with the corporation's furtherance of its health care purposes through the exercise of the special powers exercised pursuant to this section and the general powers exercised pursuant to this title, it is the policy of the state to supplant competition for the purpose of immunizing the planning and implementation of the enumerated activities by the corporation in collaboration with any one of the aforementioned entities from liability under the federal and state antitrust laws; provided, however, that nothing in this subdivision shall be construed to extend such declaration of policy to any activities other than those specifically enumerated and described in this subdivision, which remain subject to any and all applicable state and federal antitrust laws; and provided further that such declaration of policy shall not apply to any activities that improperly restrict competitive labor markets in violation of all applicable state and federal antitrust laws.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 (WHCC) may exercise its powers regardless of the impact such exercise might have on competition.
Summary of specific provisions
Section 1 amends public authorities law § 3306 to add a new subdivision 8 to clarify that WHCC may engage in certain collaborative activities in carrying out its health care purposes. This provision provides the necessary legislative declaration to immunize the collaborative activities of WHCC from liability under federal and state antitrust laws.
Section 2 establishes the effective date.
Difference between original and amended version
The amendment adds that the declaration of policy in the legislation shall not apply to any activities that improperly restrict competitive labor markets in violation of the law.
Justification
WHCC was created under the Public Authorities Law to assume 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 carries out its mission as a safety-net facility.
WHCC's authority to collaborate with private entities and individuals is clearly provided for in the general and special powers granted under Public Authorities Law §§ 3404 and 3405. However, in 2013 the U.S. Supreme Court (FTC v Phoebe Putney Health System, Inc.), held that for state action immunity to apply the state must clearly articulate and affirmatively express a policy to displace competition.
Therefore, this bill would clarify the state's intention that WHCC may collaborate to promote, to the extent necessary to promote, improved quality of and access to health care services and improved clinical outcomes, regardless of whether the collaborations displace competition and might otherwise be considered violations of state or federal antitrust.
Similar laws were enacted in 2015 and 2013 tailored to meet the needs of the Erie County Medical Center Corporation and Nassau County Health Care Corporation.
Legislative history
2015-16: S.4417-A referred to corporations, authorities and commissions and advanced to third reading, Cal. 1020; same as A.2888-A (Abinanti) 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.