Healio
Healio
February 06, 2009
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N.J. legislature votes to pass bill allowing physician self-referrals to ambulatory surgical centers

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Members of the New Jersey State Assembly yesterday voted 68-4-4 in favor of a bill that would allow physicians to refer patients to ambulatory surgical centers (ASCs) in which the physicians have a financial interest in certain situations. The bill also stipulates that single operating-room centers register with the New Jersey Department of Health and Senior Services.

Proponents of the bill (identified as both A-1933 and S-787) say that it clarifies confusion left by Garcia v. Health Net. As reported in Orthopedics Today, the decision in the November 2007 case arguably made physician ownership in ASCs illegal under a state law that bans physician self-referrals.

“This bill creates a clear exception from New Jersey's state ban on self-referrals for physician ownership of ASCs,” said Mark E. Manigan, a partner in WolfBlock LLP, the law firm that represented various state associations, including the Orthopedic Surgeons of New Jersey in Garcia v. Health Net, and has been at the forefront of the bill on behalf of groups such as Orthopedic Surgeons of New Jersey.

“We are thrilled that this cloud will be removed from physician ownership, and obviously this is something of extreme importance, particularly to the orthopedic community where ASC ownership has become an integral part of medical practice,” he told Orthopedics Today. “The bill contains some restrictions relating to physician referrals and increased regulatory oversight. The sponsors of the bill and the legislative leadership did a nice job balancing various interests. Overall, it is a great day for New Jersey physicians and New Jersey ASC owners.”

The bill was passed by the New Jersey Senate in December (37-1) and now requires action by the state governor to become law.

For more information:

  • Mark E. Manigan is a partner at WolfBlock LLP, 101 Eisenhower Parkway, Roseland, NJ 07068; 973-403-3132; e-mail: mmanigan@wolfblock.com.

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