New Law Set to Boost the Expansion of Surgical Centers in New Jersey
Former Governor Chris Christie signed into law on January 12, 2018 the One Room Bill (A-4995/S-287) altering the Codey Law, and easing restrictions and financial burdens on surgical centers in New Jersey to allow for the expansion of these facilities. Jeff Shanton, president of the New Jersey Association of Ambulatory Surgery Centers, expressed his high regard of the bill stating, “This new law also brings some much needed financial relief to our industry.
Specifically, the new law now permits combinations among registered surgical practices and licensed facilities, which would create some liquidity in the market, something desperately needed in light of the Codey Law moratorium on the development of new surgery centers.”
Surgical Centers Background
In 1989 the Codey Law was passed placing restrictions on healthcare services and ambulatory surgery centers in New Jersey. An amendment was added to the Codey Law, Senate Bill 787 P.L. 2009, c.24, requiring ambulatory surgery centers to register with the New Jersey Department of Health (“NJDOH”) even though centers were ultimately regulated by the New Jersey Board of Medical Examiners (“NJBME”), the regulatory body that licenses physicians. The amendment placed a moratorium on new ambulatory surgery centers, restricted the combination of surgical centers and centers without hospital partners.
Under the One Room law, registered surgical centers (“One Rooms”) are permitted to apply for licensure with the NJDOH as ambulatory care facilities within one year of the signing of this legislation. Along with registering with the NJDOH, surgical practices will have to obtain a certification with the Centers for Medicare and Medicaid Services (“CMS”) as an ambulatory surgery center provider . As an alternative, One Rooms can obtain certification from other CMS recognized organizations.
While still subject to NJDOH oversight, One Rooms will be exempt from restrictive physical plant standards, the costly ambulatory care facility gross receipts assessment and licensing fees as previously required by the NJBME. The law will ease regulatory standards and financial burdens on surgical centers and will make it easier for them to sell or expand their business.
Another benefit of the law is that non-owner physicians will be able to use surgical centers. Furthermore, the new law opens the door for healthcare systems and ambulatory surgery center management companies to directly invest in surgical centers. In addition, surgical centers are now authorized to combine with other One Rooms or licensed facilities to form a larger facility.
CONCLUSION
The ease of restrictions and financial burdens that this new law brings for surgical centers may help expand their businesses and potentially make it easier to sell their business. Non-owner physicians may also be able to practice at a surgical center. This new law has many benefits that professionals in the industry are excited about.
How Can We Help?
