The bill further amends the Codey law prohibition on referral of patients by a physician to an entity in which he has a significant beneficial interest by carving out certain criteria that will exempt the physician from this restriction.
New Jersey Gov. Jon S. Corzine recently signed off on a bill (S. 787) that restricts the licensing on ambulatory surgical centers, or ASCs, in the state and allows and details the conditions under which a physician with a financial interest in the center may refer his or her patients to it. The legislation comes in the wake of a November New Jersey state court ruling, Garcia v. HealthNet of New Jersey Inc. , that physicians may not, under New Jersey law, refer patients to an ASC in which they have a financial interest. Pursuant to the legislation, New Jersey physicians may now “breathe a sigh of relief” that they may lawfully refer patients to an ASC in which they have a financial interest, a statement that had come into question with the Garcia ruling.
Legislative History
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