AR SB701

Adds Subchapter 9 to Arkansas Code Title 23, Chapter 99, establishing limitations on financial penalties for physicians in alternative payment systems.

Defines "alternative payment system" as a payment methodology with risk-sharing or gain-sharing components, "gain-sharing payment" as increased payments when patient costs fall below thresholds, and "risk-sharing payment" as payment reductions when costs exceed thresholds.

Excludes provider-based networks, accountable care organizations, and clinically integrated networks from the definition of "healthcare payor."

Prohibits healthcare payors from attributing to physicians any costs resulting from the payor's freely negotiated contract pricing with outside entities if doing so reduces the physician's gain-sharing amount or increases the physician's risk-sharing amount.

Approved April 1, 2015.