The following article is written by Jeffrey Shanton, chair, Advocacy and Legislative Affairs Committee, New Jersey Association of Ambulatory Surgery Centers.
New legislation has been introduced in New Jersey concerning surgical practices and licensure.
Senate Bill S2780 (companion Assembly Bill A3909) was introduced by Senator Joseph Vitale (D) that would require all 'surgical practices' in the state of New Jersey to be licensed by the Department of Health and Senior Services (DHSS), as ambulatory surgery facilities, within one year.
Under the existing 'Codey Law' enacted in 2009, surgical facilities and surgical practices were codified and defined. The revised Codey Law grew out of the Healthnet vs Garcia lawsuit, wherein the question of surgical facilities/practices operating as an extension of a doctor's practice was ruled upon.
Multi-room surgical facilities are required to be licensed (by DHSS) and accredited by one of four independent accreditation organizations. They may perform procedures on patients referred by doctor/owners of the facility, or by doctors with no ownership interest.
One room surgical centers are required to register with DHSS, and to be either accredited like the above or Medicare-certified. These centers may only perform procedures on patients referred by a doctor/owner of said facility, as they essentially continue as an extension of the doctor's practice. They are under the auspices of the Board of Medical Examiners.
Both of the above bill a facility fee, and thus have to be Medicare-certified.
Another type of surgical center exits. One-room surgical centers performing office-based procedures only are required to be accredited. As they do not bill a facility fee, they are not required to be Medicare-certified.
It is estimated that over 120 one-room centers would be affected by this newly introduced legislation. Unfortunately, what was forgotten or conveniently ignored by the crafters of the bill was the scope of this licensure — what it entailed. The big issue will be the physical/architectural requirements of state licensure. The majority of these one-room centers will have a hard time, or not be able to comply with, these requirements. So unless grandfathered in, this legislation (in its current form) could force surgical centers (small businesses and employers) to close.
In addition, these facilities would then also be subject (as ambulatory surgery facilities) to the ambulatory assessment fee.
Learn more about New Jersey Association of Ambulatory Surgery Centers.
Read more about New Jersey ASCs:
- New Jersey Out-of-Network Bill Passes Assembly
- Three Bills Proposed in New Jersey Could Benefit Surgery Centers
- 5 Issues Affecting the Future of New Jersey ASCs