Bill Text: NY A00097 | 2019-2020 | General Assembly | Introduced
Bill Title: Authorizes healthcare facilities and professionals to pay for the fair market value of practice management, billing or health information technology services.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2020-01-08 - referred to health [A00097 Detail]
Download: New_York-2019-A00097-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 97 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. BUCHWALD, McDONOUGH -- Multi-Sponsored by -- M. of A. LIFTON -- read once and referred to the Committee on Health AN ACT to amend the public health and education law, in relation to the provision of practice management, billing and health information tech- nology services for healthcare facilities and professionals The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2811 of the public health law, as added by chapter 2 776 of the laws of 1971 and as renumbered by chapter 649 of the laws of 3 1975, is amended to read as follows: 4 § 2811. Discounts and splitting fees with medical referral services; 5 prohibited. No hospital or facility delivering health care shall grant 6 or receive a discount to or from any medical referral service or in any 7 manner split fees with a medical referral service; provided, however, 8 that nothing contained in this chapter shall prohibit such facilities or 9 licensed professionals from paying a fair market value fee to any person 10 or entity whose purpose is to perform practice management, billing or 11 health information technology services based upon a percentage of fees 12 billed or collected, a flat fee, or any other arrangement that directly 13 or indirectly divides fees, for such purposes, provided that: 14 1. the person or entity providing practice management, billing or 15 health information technology services is not responsible for the amount 16 of fees charged and collected for the services rendered by such facility 17 or licensed professional; 18 2. all charges collected are paid directly to the facility or to the 19 licensed professional or are deposited directly into an account in the 20 name of and under the sole control of the facility or licensed profes- 21 sional; and 22 3. the person or entity providing practice management, billing or 23 health information technology services does not refer patients to the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00407-01-9A. 97 2 1 facility or licensed professional and that payments made are not related 2 to or compensating for the referral of patients to the facility or 3 licensed professional. 4 § 2. Section 6509-a of the education law, as amended by chapter 555 of 5 the laws of 1993, is amended to read as follows: 6 § 6509-a. Additional definition of professional misconduct; limited 7 application. Notwithstanding any inconsistent provision of this article 8 or of any other provision of law to the contrary, the license or regis- 9 tration of a person subject to the provisions of articles one hundred 10 thirty-two, one hundred thirty-three, one hundred thirty-six, one 11 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 12 one hundred forty-three, one hundred forty-four, one hundred fifty-six, 13 one hundred fifty-nine and one hundred sixty-four of this chapter may be 14 revoked, suspended or annulled or such person may be subject to any 15 other penalty provided in section sixty-five hundred eleven of this 16 article in accordance with the provisions and procedure of this article 17 for the following: 18 That any person subject to the above enumerated articles, has directly 19 or indirectly requested, received or participated in the division, 20 transference, assignment, rebate, splitting or refunding of a fee for, 21 or has directly requested, received or profited by means of a credit or 22 other valuable consideration as a commission, discount or gratuity in 23 connection with the furnishing of professional care, or service, includ- 24 ing x-ray examination and treatment, or for or in connection with the 25 sale, rental, supplying or furnishing of clinical laboratory services or 26 supplies, x-ray laboratory services or supplies, inhalation therapy 27 service or equipment, ambulance service, hospital or medical supplies, 28 physiotherapy or other therapeutic service or equipment, artificial 29 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 30 optical appliances, supplies or equipment, devices for aid of hearing, 31 drugs, medication or medical supplies or any other goods, services or 32 supplies prescribed for medical diagnosis, care or treatment under this 33 chapter, except payment, not to exceed thirty-three and one-third per 34 centum of any fee received for x-ray examination, diagnosis or treat- 35 ment, to any hospital furnishing facilities for such examination, diag- 36 nosis or treatment. Nothing contained in this section shall prohibit 37 such persons from practicing as partners, in groups or as a professional 38 corporation or as a university faculty practice corporation nor from 39 pooling fees and moneys received, either by the partnerships, profes- 40 sional corporations, university faculty practice corporations or groups 41 by the individual members thereof, for professional services furnished 42 by any individual professional member, or employee of such partnership, 43 corporation or group, nor shall the professionals constituting the part- 44 nerships, corporations or groups be prohibited from sharing, dividing or 45 apportioning the fees and moneys received by them or by the partnership, 46 corporation or group in accordance with a partnership or other agree- 47 ment; provided that no such practice as partners, corporations or in 48 groups or pooling of fees or moneys received or shared, division or 49 apportionment of fees shall be permitted with respect to care and treat- 50 ment under the workers' compensation law except as expressly authorized 51 by the workers' compensation law. Nothing contained in this chapter 52 shall prohibit a medical or dental expense indemnity corporation pursu- 53 ant to its contract with the subscriber from prorationing a medical or 54 dental expense indemnity allowance among two or more professionals in 55 proportion to the services rendered by each such professional at the 56 request of the subscriber, provided that prior to payment thereof suchA. 97 3 1 professionals shall submit both to the medical or dental expense indem- 2 nity corporation and to the subscriber statements itemizing the services 3 rendered by each such professional and the charges therefor. Nothing 4 contained in this chapter shall prohibit such professionals from paying 5 a fair market value fee to any person or entity whose purpose is to 6 perform practice management, billing or health information technology 7 services based upon a percentage of fees billed or collected, a flat 8 fee, or any other arrangement that directly or indirectly divides fees, 9 for such purposes, provided that: 10 (1) the person or entity providing practice management, billing or 11 health information technology services is not responsible for the amount 12 of fees charged and collected for the services rendered by such profes- 13 sional; 14 (2) all charges collected are paid directly to the professional or are 15 deposited directly into an account in the name of and under the sole 16 control of the professional; and 17 (3) the person or entity providing practice management, billing or 18 health information technology services does not refer patients to the 19 professional and that payments made are not related to or compensating 20 for the referral of patients to the professional. 21 § 3. Subdivision 19 of section 6530 of the education law, as added by 22 chapter 606 of the laws of 1991, is amended to read as follows: 23 19. Permitting any person to share in the fees for professional 24 services, other than: a partner, employee, associate in a professional 25 firm or corporation, professional subcontractor or consultant authorized 26 to practice medicine, or a legally authorized trainee practicing under 27 the supervision of a licensee. This prohibition shall include any 28 arrangement or agreement whereby the amount received in payment for 29 furnishing space, facilities, equipment or personnel services used by a 30 licensee constitutes a percentage of, or is otherwise dependent upon, 31 the income or receipts of the licensee from such practice, except as 32 otherwise provided by law with respect to a facility licensed pursuant 33 to article twenty-eight of the public health law or article thirteen of 34 the mental hygiene law. Nothing contained in this chapter shall prohib- 35 it such professionals from paying a fair market value fee to any person 36 or entity whose purpose is to perform practice management, billing or 37 health information technology services based upon a percentage of fees 38 billed or collected, a flat fee, or any other arrangement that directly 39 or indirectly divides fees, for such purposes, provided that: 40 (a) the person or entity providing practice management, billing or 41 health information technology services is not responsible for the amount 42 of fees charged and collected for the services rendered by such profes- 43 sional; 44 (b) all charges collected are paid directly to the professional or are 45 deposited directly into an account in the name of and under the sole 46 control of the professional; and 47 (c) the person or entity providing practice management, billing or 48 health information technology services does not refer patients to the 49 professional and that payments made are not related to or compensating 50 for the referral of patients to the professional. 51 § 4. This act shall take effect immediately.