The New York State Department of Health has published a webpage regarding Public Health Law (PHL) Article 45-A. In our prior post, we discussed how PHL Article 45-A requires health care entities involved in material transaction(s) to provide written notice and information to DOH at least 30 days prior to the closing of a covered transaction. The law, by its terms, took effect on August 1, 2023.
The DOH webpage provides a summary of the law’s requirements and states that FAQs are under development. Further, the webpage provides that a “Material Transaction Form” is under development and will be posted for use shortly.
Of note, the webpage indicates that the Department of Health has discretion to decide whether to “notify the New York Attorney General’s office of its findings regarding a transaction.” We note that there is a separate requirement under PHL Article 45-A that requires automatic submission of the transaction documents received by DOH to the antitrust, health care and charities bureaus of the New York Attorney General’s Office. The webpage also appears to confirm that the law applies to “any other kind of health care facility, organization, or plan that provides health care services in New York,” subject to the law’s other definitional exceptions and carveouts.
New York’s law is part and parcel of a national trend at the state level involving new laws that impact health care entity operations, formation, and M&A activity with particular focus on physician practices, groups, and management services organizations. We will continue to monitor developments including guidance and regulation regarding PHL 45-A.
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