FierceHealthcareFierceHealthITFierceHealthFinanceFierceEMRHospital ImpactFierceMobileHealthcare   FiercePharma

NJ to help surgery centers out of legal bind

Tools
Tags
Centers for Medicare and Medicaid Services (CMS)
healthcare system
medical groups
Medicare
profits

Recently, a New Jersey state court ruled that ambulatory-surgery centers owned by physicians were violating a state law prohibiting physician self-referrals. The ruling, which would effectively shut down a thriving industry, has thrown the state's 200 ASC owners into a panic. Now, the New Jersey Board of Medical Examiners and state Senate President Richard Codey are working to help the ASCs out of their dilemma. Earlier this month, the Board issued an emergency amendment to its regs which would broaden the definition of a doctor's medical office to include separate sites where the doctor performs surgery. However, the change hasn't been officially adopted by the board yet, nor gotten the needed approval from the governor.

Now, however, Sen. Codey--who wrote the original law prohibiting physician self-referrals--is introducing a bill which will allow current ASCs to be be grandfathered in. However, it's notable that Codey's bill will prohibit the establishment of new centers, a move which would throttle the growth of an extremely high-growth industry. Looks like the state's ASC industry is likely to lose something no matter what happens here.

To get more info on the New Jersey ASCs' dilemma:
- read this Philadelphia Inquirer article

Related Articles:
NJ decision would shut down state's surgery centers. Report
NY accuses ASCs of collecting overpayments. Report
Number of PA ASCs keeps growing, but profits level off. Report
CMS updating rules for ASC Medicare participation. Report
Doctors sue HealthSouth over surgery centers sale. Report
Profits way up for Penn. ASCs. Report

Bookmark and Share
Get Your FREE FierceHealthcare Email Newsletter:
Comments (1) | Post a comment

Comments

I just hope the ASC doctors will not accept "Grandfathering". This would be the dumbest move on their part. Doctors have a track record of doing the dumbest things and function in this " I am OK, You are not OK, Everything is OK for me, No problem" It defacto establishes that they were doing something horrible and illegal. The events that led to the legislation should be thoroughly investigated to make sure there was no corruption of the officials from the hospital lobby. It makes no economic sense in these days of risign costs to cull down cost saving measures. What exactly is the purpose of this legislation? Who came up with it and why?

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.