The bill permits a hospital that has fewer than 50 beds and is a
county public hospital, a hospital formed by a health service district, or a hospital affiliated with either such hospital (hospital) to enter into collaborative agreements to engage in activities that may be characterized as anticompetitive or result in displacement of competition, such as agreements to provide ancillary or specialty services, joint purchasing, shared services, consulting, and collaboration efforts with payers.
The bill exempts collaborating hospitals from state antitrust laws
and provides immunity from federal antitrust laws under the state action doctrine for approved collaborative activity.
Prior to entering into a collaborative agreement, the hospitals must
submit the proposed collaborative agreement (proposal) to the department of health care policy and financing (department) and to the attorney general. If the department determines that the collaborative agreement will result in cost savings or other efficiencies that will improve or expand the delivery of health-care services in rural and frontier communities, the department must refer the proposal to the attorney general.
The attorney general must review each proposal that is referred by
the department and determine, within a specified time, that the benefits are not outweighed by any anticompetitive harm that may result from the agreement. The department or the attorney general may request additional information concerning a proposal within 60 days after its original submission. If additional information is requested, the department and attorney general have an additional 45 days to review the proposal.
If the department and the attorney general make a favorable
determination, the proposal is approved and the hospitals may enter into a collaborative agreement. If neither the department nor the attorney general respond within the time frames set forth in the bill, the collaborative proposal is deemed approved.
The department or the attorney general may review a collaborative
agreement annually to ensure the outcomes related to the collaborative agreement are consistent with statute.
