SF 3736

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; establishing procedures for health care cooperative
arrangements; proposing coding for new law in Minnesota Statutes, chapter 62R.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [62R.09] ANTITRUST IMMUNITY.
new text end

new text begin Subdivision 1. new text end

new text begin Intent; purpose. new text end

new text begin The legislature finds that the goals of controlling
health care costs and improving the quality of and access to health care services in rural
areas is significantly enhanced by the development of health care cooperatives created
under this chapter. Health care cooperatives have provided vital services to patients in
rural health care markets. Through the development of these cooperatives, rural consumers
have received better access to health care and the problems of underserved areas have
been addressed. The legislature further finds that locally based cooperative efforts
between health care providers does achieve the legislature's goals of improving health care
quality, cost controls, and improved access to health care. To promote these arrangements,
the legislature further clarifies the provisions in this chapter to ensure that cooperative
arrangements under section 62R.06 are not in violation of state or federal antitrust law.
new text end

new text begin Subd. 2. new text end

new text begin Review and approval. new text end

new text begin The commissioner shall establish criteria and
procedures to review and authorize contracts and business or financial arrangements
under section 62R.06, subdivision 1. All contracts and business or financial arrangements
must be submitted on a application for approval to the commissioner. The commissioner
shall not deny any application unless the commissioner determines that the proposed
arrangement is likely to result in higher health care costs or diminished access to or quality
of health care than would occur in the competitive marketplace. If the commissioner does
not act within 60 days after receipt of an application, the application will be deemed
approved. The commissioner may condition approval of a proposed arrangement on a
modification of all or part of the arrangement to eliminate any restriction on competition
that is not reasonably related to the goals of improving health care access or quality. The
commissioner may also establish conditions for approval that are reasonably necessary
to protect against abuses of private economic power and to ensure that the arrangement
has oversight by the state. The commissioner shall monitor arrangements approved under
this section to ensure that the arrangement remains in compliance with the conditions of
approval. The commissioner may revoke an approval upon a finding that the arrangement
is not in substantial compliance with the terms of the application or the conditions of
approval.
new text end

new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin Applications for approval under this section must describe
the proposed arrangement in detail. The application must include: the identities of all the
parties to the arrangement; the intent of the arrangement; the expected outcome of the
arrangement; and an explanation of how the arrangement will improve access or quality of
care. The commissioner may ask the attorney general to comment on an application, but
the application and any information obtained by the commissioner under this section is not
admissible in any proceeding brought by the attorney general based on antitrust law.
new text end