SECTION 133.62. Cooperative Agreements

(a) A cooperative agreement is an agreement among two or more hospitals for the allocation or sharing of health care equipment, facilities, personnel, or services, and may be established in accordance with Health and Safety Code (HSC), Chapter 314.

(b) For purposes of this section only, the term hospital is limited to a general or special hospital licensed under HSC, Chapter 241, or a private mental hospital licensed under HSC, Chapter 577.

(c) A hospital may negotiate and enter into cooperative agreements with other hospitals in the state if the likely benefits resulting from the agreement outweigh any disadvantages attributable to a reduction in competition that may result from the agreements. Acting through their boards of directors, a group of hospitals may conduct discussions or negotiations concerning cooperative agreements, provided that the discussions or negotiations do not involve price fixing or predatory pricing.

(d) Parties to a cooperative agreement may apply to the department for a certification of public advantage governing the cooperative agreement. The application must include the application fee in accordance with §133.26(e) of this title (relating to Fees), and a written copy of the cooperative agreement that describes the nature and scope of the cooperation in the agreement and any consideration passing to any party under the agreement. A copy of the application and copies of all additional related materials must be submitted to the attorney general and to the department at the same time.

Source Note: The provisions of this §133.62 adopted to be effective June 21, 2007, 32 TexReg 3587