by
Astrid Fiano, DOTmed News Writer | March 25, 2009
N.J. Governor Jon S. Corzine
New Jersey Governor Jon S. Corzine has just signed into law an amendment of the 1991 "Codey" law (after State Senator Richard Codey), now requiring single-operating room facilities to register with DHSS. The law has a limitation on new facilities, meaning in effect a physician planning to start a new facility will have 180 days from the date of the Governor signing the law (3/23/09) to develop plans for the facility and to commence the application process.
The text of the law can be found at: http://www.njleg.state.nj.us/2008/Bills/S1000/787_U2.HTM
Limit Placed on ASC Licenses
The law sponsored by State Senator Codey and signed on March 23, requires that single operating-room surgical facilities register with the N.J. Department of Health and Senior Services (DHSS) and report certain information to DHSS; it also limits the issuance of new registrations for surgical practices and licenses for ambulatory care facilities in the State.
DOTmed News just returned from the ASC 100 Executive Management Conference, held in N. San Diego this week, where the New Jersey law was a hot topic. Attendees voiced concern over the Garden State setting a precedent that might be adopted elsewhere and impede investors, including doctors, from starting new, free-standing surgery centers.
No one wanted to comment on the record but several operators noted that the New Jersey law, though restrictive, would also add value to those centers that are already up and running, a positive note for the operators.
Self-Referral Provisions
There are also revisions to the law pertaining to patient referrals to health care services in which health care practitioners or their immediate families have a significant beneficial interest. The ambulatory surgical provisions take effect immediately, and the referral section a year after the signing of the law.
The new law provides that a surgical practice operating on the effective date of the law shall register annually with DHSS--the initial registration needs to be within one year of the enactment. In addition, as a condition of registration with DHSS, surgical practices will be required to obtain certification by the Centers for Medicare and Medicaid Services (CMS) or accreditation from an accrediting body recognized by CMS, and comply with certain annual reporting requirements concerning utilization and staffing. The law also specifies the information is required to be submitted to the department by an applicant for registration.
