Recently drafted emergency rules could keep New Jersey's physician-owned ASCs and their physician-owners on the right side of the law.
In the wake of a state superior court ruling, which strictly upheld New Jersey's anti-self-referral law, the state Board of Medical Examiners adopted emergency rules on Jan. 9 that maintain the legality of physicians who refer patients to ASCs in which they hold a financial interest, as long as certain conditions are met.
The rules eliminate ASCs' concerns that facility fee billing for its physician-owners' referrals would be construed as insurance fraud under the court's ruling.
The rules should take effect once Gov. Jon Corzine issues a written agreement with the board that an emergency situation exists, and are scheduled to remain in effect for up to two months.
The court's ruling in Nov. 2007 was the unexpected outcome of a lawsuit between an insurer and a Wayne, N.J., surgical facility over disputed claims. The insurer objected to reimbursing procedures by in-network surgeons at their out-of-network, physician-owned center.
The court dismissed the insurer's complaints but held that physicians who refer patients to ASCs in which they have ownership interest are in violation of the Codey Law, a 1991 state statute that prohibits self-referral. The court further rejected the Board of Medical Examiners' 1997 advisory opinion that physician-owners' ASC referrals were in many cases permissible. The ruling put the continued operation of, and insurers' reimbursement to, the state's 200 physician-owned ASCs into question.
The emergency rules don't regulate in- or out-of-network fees, mandate disclosure of a facility's ownership on insurance claims and don't require that facility fee bills be provided to patients. They are, however, limited to ASCs owned by physicians and hospitals, excluding those of third-party, non-physician ownership.
David Bernard |