New Jersey surgeons are permitted, under certain conditions, to refer patients to their own ambulatory surgery centers thanks to a new law that reverses a previous court decision banning physician self-referrals in the Garden State. However, the legislation also places a moratorium on the development of new, non-hospital-affiliated ASCs.
The bill, which Gov. Jon Corzine is expected to sign, clarifies the conditions under which doctors will be allowed to treat patients in ASCs in which they have an ownership stake. According to an American Medical Association report, self-referrals will be permitted when:
"The physician who referred the patient personally performs the procedure.
Financial compensation is not tied to the volume of patient referrals.
All clinical decisions are made by practicing physicians and are in the best interest of patients.
Patients are given prior written notice of the physician’s financial interest."
The Medical Society of New Jersey praised the compromise; the organization had lobbied lawmakers to reverse a 2007 trial court ruling that deemed all physician self-referrals illegal. Doctors also welcomed a provision exempting one-room surgery centers associated with private medical practices from a tax on licensed, multi-specialty ASCs. The new law does add a new requirement that those smaller centers must register with the state health department.
Meanwhile, Ambulatory Surgery Center Association President Kathy Bryant warns that the moratorium on the construction of new ASCs that are not affiliated with a hospital could encourage other states to follow suit. "This type of broad-based restriction [on new surgery centers] is not something we’ve seen before," Ms. Bryant tells American Medical News.
—Irene Tsikitas
