Bill Text: OH SB26 | 2011-2012 | 129th General Assembly | Introduced

---

Bill Title: To prohibit providers of clinical laboratory services from inducing physicians to refer patients in exchange for remuneration and from placing laboratory personnel in physician offices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-02-01 - To Health, Human Services, & Aging [SB26 Detail]

Download: Ohio-2011-SB26-Introduced.html

---

As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 26

Senator Tavares 

---

A BILL

To amend section 3702.31 and to enact sections

1

3701.94 and 3701.941 of the Revised Code to

2

prohibit providers of clinical laboratory services

3

from inducing physicians to refer patients in

4

exchange for remuneration and from placing

5

laboratory personnel in physician offices.

6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3702.31 be amended and sections	7
3701.94 and 3701.941 of the Revised Code be enacted to read as	8
follows:	9

Sec. 3701.94.  (A) As used in this section and section	10
3701.941 of the Revised Code:	11

(1) "Clinical laboratory services" means the microbiological,	12
serological, chemical, hematological, biophysical, cytological, or	13
pathological examination of materials derived from the human body	14
for purposes of obtaining information for the diagnosis,	15
prevention, treatment, or screening of any disease or impairment	16
or for the assessment of health. "Clinical laboratory services"	17
also means the collection or preparation of specimens for testing.	18

(2) "Clinical laboratory services provider" means any person,	19
or any employee, employer, agent, representative, or other	20
fiduciary of such person, who provides clinical laboratory	21
services.	22

(3) "Group practice" has the same meaning as in section	23
4731.65 of the Revised Code.	24

(4) "Hospital" has the same meaning as in section 3727.01 of	25
the Revised Code.	26

(5) "Physician" means an individual authorized under Chapter	27
4731. of the Revised Code to practice medicine and surgery,	28
osteopathic medicine and surgery, or podiatric medicine and	29
surgery.	30

(B) No clinical laboratory services provider shall, directly	31
or indirectly, offer, give, pay, or deliver, or agree to offer,	32
give, pay, or deliver, any remuneration, in cash or in kind,	33
including any kickback, bribe, or rebate, to any physician or	34
group practice to induce the physician or group practice to do	35
either of the following:	36

(1) Refer patients to the clinical laboratory services	37
provider;	38

(2) Enter into an arrangement whereby the clinical laboratory	39
services provider and the physician or group practice agree to	40
split fees.	41

(C)(1) Subject to division (C)(2) of this section, no	42
clinical laboratory services provider shall give to a physician or	43
group practice, supply the physician or group practice with, or	44
place in the physician's or group practice's office any	45
individual, including an employee, agent, representative, or other	46
fiduciary of the provider, whether paid or unpaid, for the purpose	47
of having that individual perform clinical laboratory services for	48
the physician or group practice.	49

(2) Nothing in division (C)(1) of this section prohibits a	50
clinical laboratory services provider from entering into a	51
laboratory management services contract with a hospital, including	52
a contract that requires the provider to place employees or agents	53
who perform functions directly related to the provision of	54
clinical laboratory services at the hospital, as long as the	55
contract specifies that the hospital will pay fair market value	56
for the laboratory management services rendered.	57

Sec. 3701.941.  If the director of health determines that a	58
clinical laboratory services provider has violated division (B) or	59
(C) of section 3701.94 of the Revised Code, the director shall	60
impose on the provider a civil penalty of not less than one	61
thousand dollars and not more than ten thousand dollars for each	62
day that the provider violates either division.	63

Sec. 3702.31.  (A) The quality monitoring and inspection fund	64
is hereby created in the state treasury. The director of health	65
shall use the fund to administer and enforce this section and	66
sections 3702.11 to 3702.20, 3702.30, 3702.301, and 3702.32, and	67
3701.94 of the Revised Code and rules adopted pursuant to those	68
sections. The director shall deposit in the fund any moneys	69
collected pursuant to this section or section 3702.32 or 3701.941	70
of the Revised Code. All investment earnings of the fund shall be	71
credited to the fund.	72

(B) The director of health shall adopt rules pursuant to	73
Chapter 119. of the Revised Code establishing fees for both of the	74
following:	75

(1) Initial and renewal license applications submitted under	76
section 3702.30 of the Revised Code. The fees established under	77
division (B)(1) of this section shall not exceed the actual and	78
necessary costs of performing the activities described in division	79
(A) of this section.	80

(2) Inspections conducted under section 3702.15 or 3702.30 of	81
the Revised Code. The fees established under division (B)(2) of	82
this section shall not exceed the actual and necessary costs	83
incurred during an inspection, including any indirect costs	84
incurred by the department for staff, salary, or other	85
administrative costs. The director of health shall provide to each	86
health care facility or provider inspected pursuant to section	87
3702.15 or 3702.30 of the Revised Code a written statement of the	88
fee. The statement shall itemize and total the costs incurred.	89
Within fifteen days after receiving a statement from the director,	90
the facility or provider shall forward the total amount of the fee	91
to the director.	92

(3) The fees described in divisions (B)(1) and (2) of this	93
section shall meet both of the following requirements:	94

(a) For each service described in section 3702.11 of the	95
Revised Code, the fee shall not exceed one thousand seven hundred	96
fifty dollars annually, except that the total fees charged to a	97
health care provider under this section shall not exceed five	98
thousand dollars annually.	99

(b) The fee shall exclude any costs reimbursable by the	100
United States centers for medicare and medicaid services as part	101
of the certification process for the medicare program established	102
under Title XVIII of the "Social Security Act," 79 Stat. 286	103
(1935), 42 U.S.C.A. 1395, as amended, and the medicaid program	104
established under Title XIX of the "Social Security Act," 79 Stat.	105
286 (1965), 42 U.S.C. 1396.	106

(4) The director shall not establish a fee for any service	107
for which a licensure or inspection fee is paid by the health care	108
provider to a state agency for the same or similar licensure or	109
inspection.	110

Section 2.  That existing section 3702.31 of the Revised Code	111
is hereby repealed.	112