The Supreme Court overturned the 40-year-old legal precedent known as Chevron deference, which said disputes over regulation of an ambiguous law, judges should defer to federal agency interpretations within reason.
Five notes for ASC owners and operators:
1. The impact of the decision won't be immediate, but the legal challenges to existing and new regulations are expected, according to a July 2 analysis from Nixon Peabody.
2. The ruling might affect hospital reimbursements, according to Moody's Investor Services. A report from the ratings agency is predicting that litigation will increase and the industry is likely to see lawsuits related to reimbursement, insurance eligibility and more.
3. ASC leaders should watch how litigation related to hospital reimbursements play out, as reimbursement policies could apply to them as well. More than 6,200 ASCs are Medicare-certified, and more than 6 million Medicare procedures are performed at ASCs annually, according to the ASCA website.
4. Health systems are already taking action in light of the decision. Edison, N.J.-based Hackensack Meridian Health filed a lawsuit against HHS Secretary Xavier Becerra June 28, the same day the Chevron deference was overturned. The lawsuit is related to hospital reimbursements.
5. The FDA is also likely to be affected by the ruling, according to a July 2 Washington Post report. With the precedent overturned, companies could target the FDA's decisions on whether to approve new drugs and emerging technologies such as artificial intelligence.