New York updates physician group acquisition policy: 8 things to know

The New York state Legislature has introduced new reporting requirements for healthcare acquisitions and transactions, which will go into effect Aug. 1, according to a June 23 report from JD Supra.

Here are eight things to know about the new requirements:

1. The healthcare entities that must follow the new requirements include physician practice groups, provider-sponsored organizations, management services organizations or similar entities that contract with physician practices.
2. "Material transactions" covered under the policy include mergers with healthcare entities; acquisitions of one or more healthcare entities; affiliation agreements or contracts between a healthcare entity and another person; and formation of a partnership, joint venture, accountable care organization, parent organization, or management services organization.
3. These transactions can occur during a single transaction or as a series of transactions across a 12-month period.
4. A transaction or series of transactions will only be subject to the new reporting requirements if it will lead the healthcare entity to increase its total gross in-state revenues by at least $25 million.
5. Healthcare entities involved in such transactions will be required to provide written notice of the transaction to the Department of Health at least 30 days prior to closing, along with supporting documentation.
6. After receiving the notice, the DOH will forward it to the antitrust, healthcare and charities bureaus of New York's attorney general's office.
7. The DOH will also publish a public summary of the transaction within the 30-day period before the transaction closes to gather public comments.
8. Healthcare entities participating in transactions subject to the new reporting requirements who do not follow them will face civil penalties of at least $2,000 a day.