Provider Cooperative Review

The 2009 Minnesota Legislature passed a law establishing a review, approval, and monitoring process for contract, business or financial arrangements of health provider cooperatives  (Minnesota Statutes Section 62R.09). Under this process, a health provider cooperative must submit an application for any modifications, renewals, or extensions of all contract, business or financial arrangements to the Minnesota Department of Health (MDH). MDH is required to review the application and issue a finding based on the impact of the proposed arrangement on the health care marketplace and to actively monitor the arrangement.

In conducting its review, the MDH is required to consider certain issues, including:

• Whether the arrangement is likely to produce significant efficiencies that benefit consumers, such as cost savings or improvements in quality of or access to care;
• If the arrangement is likely to have any anticompetitive effects on the marketplace; and
• Provided that the potential anticompetitive effects outweigh the pro-competitive efficiencies resulting from the arrangement.

Under the statute, MDH may request additional information 30 days after receiving an application and must approve or deny an application within 60 days after receiving the application or 60 days after receiving additional information requested.

To submit an application for review, contact us at health.hctransactions@state.mn.us.