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Senate bars ASC development near rural hospital

Ambulatory Surgery Reimbursement Update, July 4, 2006

The Louisiana Senate has approved a bill that discourages the development of healthcare facilities such as ambulatory surgery centers (ASCs) within a 25-mile radius of rural hospitals.

"The development of healthcare facilities that provide services that duplicate those already available in the primary service areas of rural hospitals endangers their continued existence by reducing revenue and can lead to the closure or reduction of access to services in their twenty-four hour emergency rooms," the bill states.

The bill stipulates that if ASC development occurs within the 25-mile radius, then the ASC must offer the rural hospital the option to participate in ownership of the facility. The bill has been sent to the governor to sign into law.

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