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October 2014 - State Attorney General Issues Guidance Regarding the Reporting of Certain Physician Transactions

October 15, 2014

October 1 marked the effective date of new legislation requiring physician groups (two or more physicians) and other health care organizations to report certain physician group-related transactions to the State Attorney General.  Public Act 14-168 requires parties to notify the Attorney General at least thirty days in advance of the effective date of: (i) mergers, purchase and sale transactions and employment-related arrangements between physician groups that result in groups of eight or more physicians; and (ii) mergers, purchase and sale transactions and employment-related arrangements between a physician group and a hospital, medical foundation or other hospital-related entity, regardless of the number of physicians in the resulting entity.

Last week, the Attorney General posted instructions regarding this reporting requirement on the Attorney General’s website, which can be found here. In addition to general instructions and filing information, including practical guidance regarding the calculation of each location’s primary service area, this website includes a link to the form that parties must use in making the required reports.  Please note that this form contains four separate sheets, labeled as A through D, and that all sheets must be submitted in connection with a physician group transaction as described briefly above. 

The Attorney General has not yet issued instructions or guidance regarding other requirements contained within the same Public Act, namely requirements imposed upon hospitals and their affiliated practices and upon large group practices (thirty or more physicians) to annually report certain information relating to their relationships, locations, specialties and scope.  We expect that the Attorney General will issue additional guidance relating to these reporting requirements as the calendar year comes to a close.  However, we also expect that the Attorney General will require these reports to follow a format similar to that required in the physician group transaction context.  Thus, hospitals and large groups that are beginning to compile their reports can reasonably use sheets C and D of the above-mentioned form as a guide, recognizing that some tinkering may be necessary if and when the Attorney General issues specific guidance. 

If you have any questions about this topic, or any other matters involving health care law, please contact your usual Murtha Cullina attorney or Stephanie Sprague Sobkowiak at 203.772.7782 or ssobkowiak@murthalaw.com, Kennedy Hudner at 860.240.6029 or khudner@murthalaw.com, or Paul Knag at 203.653.5407 or pknag@murthalaw.com.  

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