AAASC Provides State Advocacy Update

The American Association of Ambulatory Surgery Centers (AAASC) has issued a state advocacy update.

State Legislation

-- The following state legislatures are currently in the midst of their 2006 regular session: Arizona, California, Delaware, District of Columbia,Louisiana, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and Rhode Island.

-- Utah Gov. Jon Huntsman was provided with what he described as an “eye-opening” tour of the RiverwoodsSurgeryCenter in Provo last Monday. Huntsman was taken on the tour by the chairman of the Privately Owned Health Care Organization Task Force, Sen. Michael Waddoups, as part of an effort to garner his support on healthcare reform issues. The task force is currently developing legislation to deal with issues such as patient choice (specifically relating to ASCs), cost transparency, and insurance industry market reform.

-- The California Hospital Association has filed a lawsuit against Blue Cross of California, claiming that a new policy by the health insurer will violate state laws because it would pay doctors who opt to perform endoscopies in hospitals less than those who do so in outpatient centers.

  AAASC Washington Leadership Conference

-- The AAASC Washington Leadership Conference was held June 5-6, 2006. The first day of the event included high-level presentations from Washington insiders, including Herb Kuhn, director of Medicare Management, a part of the Centers for Medicare and Medicaid Services (CMS), and Dr. Michael Burgess, an OB/GYN and member of Congress from Texas. That night, AAASC hosted a fund-raiser for Charles Grassley, chair of the Senate Finance Committee. On the second day, 130 participants communicated with their members of Congress about supporting HR 4042 and S 1884, the Ambulatory Surgical Center Medicare Payment Authorization Act.

ASC Tax and Licensure

-- Florida Gov. Jeb Bush signed HB 7141/Chapter 2006-192, a bill establishing a new set of minimum core licensing requirements for all healthcare providers licensed by the Agency for Health Care Administration, including ASCs, as part of an effort to eliminate unnecessary duplication and variation of licensure requirements among providers.

-- The Louisiana Senate this week unanimously approved HB 1240, a bill that would exempt rural hospital service district cooperative endeavors and joint ventures (including those established to construct or operate an ASC) from ad valorem or personal property taxation.

-- The Massachusetts Senate voted to uphold SB 2500. SB 2500, an FY 2007 appropriations bill, would require the inspector general to investigate and report to the Joint Committee on Health Care Financing, the House Ways and Means Committee and the Senate Ways and Means Committee by March 1, 2007 on the potential impact of any claims pertaining to or services rendered in physician-owned multi-specialty ambulatory surgical centers on the Massachusetts healthcare delivery system (including health insurance, Medicaid and the uncompensated care pool costs).

-- Louisiana SB 666, relating to physician licensure and pain management clinics, was amended and released this week by the House Health and Welfare Committee. The bill was then reported without amendments by the Legislative Bureau and advanced to Third Reading.

  ASC Out of Network/Balance Billing

-- Colorado Gov. Bill Owens has signed SB 213, a bill requiring that healthcare services provided at an in-network facility be provided to the covered person at a cost no greater than services provided by an in-network provider. Current law allows a consumer to intentionally choose to use an out-of-network provider, but if they do so they are only entitled to benefits at the out-of-network rate and may be subject to balance billing by the out-of-network provider. The bill is meant to codify the Division of Insurance’s interpretation that holds consumers harmless for charges over and above the in-network rates for services rendered in a network facility.

ASC Physician Ownership

-- The Louisiana Senate approved SB 570, a bill that discourages ASC development within a 25-mile radius of a rural hospital. The bill states that if ASC development occurs within the 25-mile radius, then the ASC and rural hospital have to enter into an agreement where the rural hospital will have majority ownership in the ASC. The bill has been sent to the governor to sign into law.

Source: AAASC