New Law Allows NuHealth to Rely on Power Partner

November 6, 2013
New Law Allows NuHealth to Rely on Power Partner

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Crain’s Health Pulse
November 7, 2013
Hospital Deal Highlights Antitrust Regs

When Gov. Andrew Cuomo signed a law last month that lets Nassau Health Care Corp., which operates Nassau University Medical Center, collaborate with the North Shore-LIJ system, he rejected the antitrust issues raised by the state attorney general.

But New York state has been hammering out antitrust guidance for months. In September, the Department of Health published its proposed Certificate of Public Advantage regulations. These rules set a course for establishing active state supervision of collaborative arrangements among competitors, giving them state action immunity under federal antitrust laws, reports McDermott Will & Emery.

The proposed rules let providers apply for a COPA that lets them collaborate on such activities as sharing patients, personnel and resources, and implementing clinical integration programs, mergers or joint ventures.

When DOH gets a COPA application, "in consultation with the attorney general and the Public Health and Health Planning Council [it] must weigh the potential benefits of the proposed collaboration against any potential disadvantages caused by the displacement of competition," MWE wrote.

DOH has not publicized the new rules, but law firms have been telling their health care clients about them. The proposed regulations "represent a significant step for health care providers contemplating entering into collaborative arrangements with competitors; which relationships, absent active state supervision, might otherwise be deemed to be anticompetitive under state or federal antitrust laws," wrote Harris Beach.



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