Pre-Merger Notification Rule for Medical-Practice Groups

Regulation Authority:

R.I. Gen. Laws § 6-36-1
R.I. Gen. Laws § 6-36-22

Purpose and Reason:

This Rule has been promulgated to set forth the notification requirements when there is a material change in the ownership or control of medical-practice groups in Rhode Island. To combat ever-increasing market concentration and rising costs in health care that do not result in increased quality of care, the Rule requires Rhode Island based medical-practice groups to notify the Rhode Island Attorney General’s Office of any merger, consolidation, or acquisition that would result in (1) ownership or control by a significant equity investor (defined to include private equity companies), (2) a group of eight (8) or more physicians, physician assistants, and/or nurse practitioners, or (3) any formation of a management services organization or similar entity created to administer contracts with health insurance carriers or third-party administrators on behalf of a medical-practice group. The increasing consolidation in the health services industry necessitates strengthened reporting requirements to ensure that the Attorney General’s Office, Rhode Island’s primary antitrust regulatory, is notified of potentially harmful transactions.