In March, the New York Department of Health (DOH) published “frequently asked questions” (FAQs) related to the law that requires “health care entities” party to a “material transaction” to report the transaction to the DOH in advance.
The FAQs address, among other things:
- determination of the $25 million in-state revenue threshold with respect to reportable transactions;
- which persons are required to report;
- how the law interplays with New York’s Certificate of Need (CON) requirements; and
- how parties should assess the transaction’s impact on cost, quality, access, health equity, and competition.
Under the law, “de minimis” transactions are not reportable. A “de minimis” transaction is a single transaction or series of transactions that would result in a health care entity increasing its total gross in-state revenues by less than the $25 million threshold. The FAQs give examples of how to apply the $25 million threshold in certain instances.
The FAQs further provide that a health care entity may also be required to report even if it is domiciled outside of New York State if it meets the in-state revenue threshold and other requirements of the law.
The FAQs confirm that dental practices, clinical laboratories, pharmacies, IPAs, and ACOs are health care entities subject to the law, however, the FAQs indicate that the list is illustrative and not exhaustive.
Should you have any questions regarding the above, please contact the authors, the Garfunkel Wild attorney with whom you regularly work, or email us at info@garfunkelwild.com.