Washington D.C., partner Rob McCann was quoted in the Health Law Reporter in an article on the Department of Justice’s decision not to block the Greater New York Hospital Association’s (GNYHA) proposal to sponsor a gainsharing program.

GNYHA is a trade association that serves hospitals and continuing care facilities in New York and other nearby states. Its proposed program would be voluntary and be available to the approximately 100 member hospitals that are its New York members, to enable them to determine reasonable incentive payments for their physicians.

DOJ said the program, as proposed by the association, should not adversely affect competition because hospitals will not exchange any confidential information and because each hospital will independently determine physician gainsharing amounts.

Rob said he did not think DOJ's antitrust position was surprising because it appears that the program has been structured to ensure that competitive information will not be shared and that the program will not result in any type of price stabilization.

“It's sort of an amalgamation of the safe harbor on sharing cost information and a ‘messenger model' network,” he noted.

“It's clearly very relevant, however, in terms of the current economic environment because the GNYHA program appears to be very similar in structure to some shared savings programs that have been established by payers and by some less integrated third party administrator (TPA) arrangements,” he said.

Source: Health Law Reporter