§ 2950. Legislative findings. The legislature finds and determines as
follows:

1. The health care delivery system is undergoing a major
transformation in response to changing demographics and consumer needs,
changes in reimbursement policies, the emergence of alternate service
providers, and public pressure to control health care costs.

2. Such changes have a particularly severe impact on rural health care
delivery, which consists of small, frequently isolated providers who
have limited financial resources and health support networks. Many such
providers are experiencing financial stress or certain barriers to
change which could seriously reduce access to quality health care
services by individuals in rural environs.

3. This development calls for greater sharing of information and
resources among rural health care providers. The promotion of proper
planning and cooperative efforts among such providers would improve
individual access to health care in rural areas and enhance
cost-effectiveness in the delivery of such services as tertiary, acute,
primary, home health and skilled nursing care; and illness prevention.

4. It is, therefore, the intent of the legislature to encourage
continued access to high quality health care in rural areas as well as
the development of rural health network agreements among providers of
health care servicing rural areas which result in the merger or
integration and coordination of health care services pursuant to such
network agreements; and to provide the necessary funding for such
networks.

5. It is further the intent of the legislature that as needed,
regulatory waivers may be granted to participating providers as required
to successfully implement networks within the limits of prudent
provision for the health, safety, and general welfare of the people
receiving health care. In addition, the commissioner shall actively
provide for technical assistance in order to support the creation and
operation of rural health networks.

6. It is further the intent of the legislature that, in order to
promote access to health care services, to increase the required linkage
of health care service providers, and promote the quality and continuity
of care provided to residents in rural areas, it shall be the policy of
this state to encourage cooperative, collaborative and integrative
arrangements between rural networks and health care providers who might
otherwise be competitors, under the active supervision of the
commissioner. To the extent such arrangements might be anti-competitive
within the meaning and intent of the federal antitrust laws, it is
further the intent of the legislature to supplant competition with such
arrangements to the extent necessary to accomplish the purposes of this
article, and provide state action immunity under the federal antitrust
laws with respect to the planning, implementation and operation of rural
health networks and central services facility rural health networks and
health care providers participating in or members of such networks.