§ 3405. Special powers of the corporation. In order to effectuate the
purposes of this title, the corporation shall have the following
additional powers, subject to this title, the civil practice law and
rules, the public health law, the mental hygiene law, the social
services law, the education law and any other applicable law or
regulation:

1. To operate, manage, superintend and control any health facility
under its jurisdiction and to repair, maintain and otherwise keep up any
such health facility; and to establish and collect fees, rentals, and
other charges for the sale, lease or sublease of any such health
facility, subject to the terms and conditions of any contract, lease,
sublease or other agreement with the county;

2. To provide health and medical services for the public directly or
by agreement or lease with any person, firm or private or public
corporation or association through or in the health facilities of the
corporation or otherwise and to make internal policies governing
admissions and health and medical services; and to establish and collect
fees and other charges for the provision of such health and medical
services; and to provide and maintain resident physician and intern
medical services; and to sponsor and conduct research, educational and
training programs;

3. To enter into contracts, leases, subleases and other agreements for
the purpose of affiliating with a medical college or related educational
agency or institution in conjunction with the corporation's health
facilities, which agreements may provide for the management, operation
and staffing of health facilities, the reconstruction, renovation or
addition to health facilities; the provision of necessary facilities,
utilities and services; and such other conditions or features necessary
and proper for such purpose and for the public health and general
welfare;

4. To determine the conditions under which a physician may be extended
the privilege of practicing within a health facility under the
jurisdiction of the corporation, and to promulgate reasonable internal
policies for the conduct of all persons, physicians and nurses within
such facility; and

5. (a) Except as otherwise provided in any applicable law or
regulation, to exercise and perform all or part of its purposes, powers,
duties, functions or activities through one or more subsidiary entities
owned or controlled wholly or in part by the corporation, which shall be
formed pursuant to the business corporation law, the limited liability
company law, or the not-for-profit corporation law, in each case subject
to all the limitations provided in this article.

(b) Any such subsidiary may be authorized to act as a general or
limited partner in a partnership or as a member of a limited liability
company, and enter into an arrangement calling for an initial and
subsequent payment by such subsidiary in consideration of an interest in
revenues or other contractual rights.

(c) An entity shall be deemed a subsidiary whenever and so long as (i)
more than half of any voting shares of such subsidiary are owned or held
by the corporation or (ii) a majority of the directors, trustees or
members of such subsidiary are designees of the corporation.

(d) The corporation may transfer to any subsidiary entity any monies,
real or personal or mixed property in order to carry out the purposes of
this title, subject to the rights of the holders of any bonds of the
corporation.

(e) Any subsidiary which provides health care services previously
provided by the county and transferred by the corporation to the
subsidiary shall comply with and be subject to subdivision nine of this
section and subdivisions seven through ten inclusive of section
thirty-four hundred two, sections thirty-four hundred ten, thirty-four
hundred sixteen, thirty-four hundred seventeen and thirty-four hundred
eighteen of this title as applicable. The transfer of any monies, real
or personal or mixed property to a subsidiary shall be governed by any
restrictions or limitations as the county may establish in the agreement
between the county and the corporation as described in subdivision two
of section thirty-four hundred six of this title.

(f) Any material change in the operation of a health facility that
occurs pursuant to a transfer or agreement between the corporation and
any of its subsidiaries shall require the board of such corporation or
subsidiary to provide written notice of such transfer or agreement to
the county executive and majority leader and minority leader of the
county legislature within seven days of such transfer.

6. To contract with the county for related public health services to
be determined by the county and the corporation.

7. To negotiate and make any payments in lieu of taxes with any
political subdivision where the corporation holds real estate.

8. To contract with the county to provide, in whole or in part, health
care services, and to operate facilities and programs which provide
health care services.

9. To provide uncompensated care to persons in need of health care
services without the ability to pay.

10. (a) In carrying out its health care purposes through the exercise
of the special powers exercised pursuant to this section and the general
powers exercised pursuant to section thirty-four hundred four of this
title, the corporation is authorized to engage in arrangements,
contracts, information sharing and other collaborative activities with
public or private entities and individuals irrespective of the
competitive consequences of these activities and notwithstanding that
these activities may have the effect of displacing competition in the
provision of hospital, physician, or other health care-related services.
These collaborative activities may include without limitation: joint
ventures; joint negotiations with physicians, hospitals and payors,
whether such negotiations result in separate or combined agreements;
leases; and/or agreements which involve delivery system network creation
and operation, provided that, the corporation shall exercise state
oversight by determining whether particular collaborations with public
or private entities and individuals further the interests of the state
as set forth in this subdivision and in subdivision three of section
thirty-four hundred one of this title. In undertaking these
collaborative activities, the corporation and the public or private
entities and individuals with which it collaborates shall be immunized
from liability under the federal and state antitrust laws.

(b) Notwithstanding the provisions of this section, the corporation
and its collaborators shall remain subject to generally applicable
provisions of the public health law and regulations thereunder. In
addition, the corporation shall file an annual report with the state
department of health, as additional state oversight, concerning the
impact of the collaborations authorized under this section on the
advantages and disadvantages identified by the department of health in
its request for applications for HEAL NY Phase 21, entitled
"Restructuring Initiatives in Medicaid Redesign," and concerning the
impact on reimbursement to the corporation's facilities by managed care
organizations with respect to commercial plan members, including the
extent to which rates have been negotiated that more fairly compensate
the corporation's facilities for the cost of providing services to
commercial enrollees, without cross-subsidy from medicaid or other
governmental programs. In response to the report, the department of
health shall have sixty days after the report has been filed to request,
in writing, that the corporation make changes to its policies to ensure
that the collaborations authorized under this section further the
interests of the state.