Approved rural providers could collaborate under state oversight

Rural health care entities and individuals may share data, services, staff, technology, facilities, and other resources after receiving a state certificate. The provision covers entities and individuals carrying out the state’s rural health care policy, including rural providers and related organizations. Applicants must describe the parties, activities, expected effects, and other requested information. Applicants must certify that the activity is in good faith and reasonably necessary for the state’s rural health policy. The State Health Planning and Development Agency may approve an activity only when its benefits outweigh foreseeable harm to competition. Negotiations with specified health plans, insurers, employee benefit plans, and other listed health care payment plans may not be approved. A valid certificate must be obtained before the activity begins, and the certificate lasts three years unless renewed or changed.

Approved and actively supervised activities would be treated as part of a state policy that may replace competition with regulated collaboration when reasonably necessary. The policy applies to rural health care activities covered by an approved certificate, including conduct that may affect prices, markets, trade, or service output. The State Health Planning and Development Agency must approve the activity, and the Governor or the Governor’s designee must approve the certificate in writing. The text states an intent to exempt covered conduct from state antitrust laws and provide federal protection through the state-action doctrine. Protection is limited to conduct approved and supervised under the act. The certificate does not take effect until written approval by the Governor or the Governor’s designee.

The State Health Planning and Development Agency must actively supervise approved activities and may renew, amend, or revoke certificates. These rules apply to activities conducted under certificates issued under the act. Renewal applicants must show that the activity continues in good faith and remains reasonably necessary. The agency may renew a certificate only when the benefits continue to outweigh foreseeable anticompetitive effects. The agency must amend or revoke a certificate if the activity is no longer reasonably necessary or its benefits no longer outweigh those effects. The agency must adopt rules to carry out and supervise the program. Certificates last three years and may be renewed in additional three-year periods; the act states that it becomes effective immediately.