Rpld §3626 sub 8, rpld & add §3631 sub 10, Pub Auth L
Relates to authorizing the Erie county medical center corporation to enter into agreements for the creation and operation of a health care delivery system network.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9176
SPONSOR: Peoples-Stokes TITLE OF BILL:
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 and
certain collaborative activities of the Erie county medical center
corporation; and to repeal certain provisions of such law relating ther-
eto
PURPOSE:
To clarify that the Erie County Medical Center Corporation may exercise
its general and special powers to engage in certain collaborative activ-
ities, regardless of whether such exercise might have an impact on
competition.
SUMMARY OF PROVISIONS:
Section one repeals subdivision B of section 3626 of the Public Authori-
ties Law.
Section two repeals subdivision 10 of section 3631 of the Public Author-
ities Law and adds a new subdivision 10 to section 3631 of the Public
Authorities Law to clarify that in carrying out its health care
purposes, ECMC may engage in certain collaborative activities with, and
limited to, the other parties to the Great Lakes Health, Inc. Restated
Binding Agreement of 2012 and the University at Buffalo of the State
University of New York. This provision provides the necessary legisla-
tive declaration for the activities of ECMC and of the private entities
and individuals with which it collaborates, to be immunized from liabil-
ity under federal and state antitrust laws.
Section three is the effective date.
JUSTIFICATION:
ECMC was created under Title 6 of Article 10-C of the Public Authorities
Law. The corporation was formed from the Erie County Medical Center, a
public hospital owned and operated by Erie County. The medical center
healthcare network included a general hospital, the Erie County Home,
and several clinics in Erie county. The center also served, and ECMC
continues to serve, as a tertiary care facility for Erie County and
seven other counties in Western New York.
As a result of the recommendations made by the Commission on Health Care
Facilities in the 21st Century (Berger Commission) report in 2006, and
occurring in the way that is provided, ECMC has worked and continues to
work to form health care collaborations while continuing 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 gener-
al and special powers granted to it under Public Authorities Law §§ 3630
and 3631. 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 affirma-
tively express a policy to displace competition. Therefore, ECMC 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:
None.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as
chapter 560 of the laws of 2015.
