Proposed New York bill would subject provider, MSO transactions to regulatory review

The proposed 2024 New York State Executive Budget includes a bill requiring certain management services and physician practice organizations to go through regulatory review and approval by the Department of Health.

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The new Article 45-A of the public health law would give the health department the authority to review and approve material transactions involving a healthcare entity.

These transactions include affiliations, acquisitions and mergers, along with the formation of management services organizations. It also includes “an affiliation or contract formed between a healthcare entity and another person.” 

The regulatory review process would require healthcare entities involved in material transactions to submit an application for consent and a written notice at least 30 days before the target closing date. The transaction will be approved if the DOH does not act upon the application during the 30-day notice period.

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