AI-assisted research summary: The designated agency must issue a certificate of public advantage for a merger agreement if the listed public-benefit and competition conditions are met, and it may add compliance terms if needed.
Sec. 314A.056. ISSUANCE OF CERTIFICATE OF PUBLIC ADVANTAGE. (a) The designated agency, after reviewing the application and consulting with the attorney general in accordance with Section 314A.055, shall issue a certificate of public advantage for a merger agreement if: (1) the designated agency determines under the totality of the circumstances that: (A) the proposed merger would likely benefit the public by maintaining or improving the quality, efficiency, and accessibility of health care services offered to the public; and (B) the likely benefits resulting from the proposed merger agreement described by Paragraph (A) outweigh any disadvantages attributable to a reduction in competition that may result from the proposed merger; and (2) the application: (A) provides specific evidence showing that the proposed merger would likely benefit the public as described by Subdivision (1)(A); (B) explains in detail how the likely benefits resulting from the proposed merger agreement outweigh any disadvantages attributable to a reduction in competition as described by Subdivision (1)(B); and (C) sufficiently addresses the factors listed in Subsection (b) and any other factor the designated agency may require based on the circumstances specific to the application. (b) In making the determination under Subsection (a)(1), the designated agency shall consider the effect of the merger agreement on the following nonexclusive list of factors: (1) the quality and price of hospital and health care services provided to citizens of this state; (2) the preservation of sufficient hospitals within a geographic area to ensure public access to acute care; (3) the cost efficiency of services, resources, and equipment provided or used by the hospitals that are a party to the merger agreement; (4) the ability of health care payors to negotiate payment and service arrangements with hospitals proposed to be merged under the agreement; and (5) the extent of any reduction in competition among physicians, allied health professionals, other health care providers, or other persons providing goods or services to, or in competition with, hospitals. (c) The designated agency may include terms or conditions of compliance in connection with a certificate of public advantage issued under this subchapter if necessary to ensure that the proposed merger likely benefits the public as specified in Subsection (a)(1). Added by Acts 2019, 86th Leg., R.S., Ch. 1168 (H.B. 3301), Sec. 1, eff. September 1, 2019.