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Legislation proposed to ban physician referrals to same-physician-owned facilities

Ambulatory Surgery Reimbursement Update, August 11, 2006

A senator in Pennsylvania has proposed legislation that would ban physicians from referring their patients to facilities in which they have large ownership, according to a story in The Patriot-News.

One example of when such a referral could no longer occur if the legislation passes is a physician owning part of an imaging center and no longer having the option of referring patients to the facility for magnetic resonance imaging (MRI), according to The Patriot-News.

Supporters of the legislation proposed by Pat Vance (R-Cumberland) have argued that physicians who are allowed to refer their patients to facilities in which they have ownership may cause some physicians to make unnecessary referrals for personal financial gain.

Opposition to the legislation, including the Pennsylvania Medical Society, argue the bill is anti-competitive. "It would reduce access, particularly in rural or underserved areas," spokesman Chuck Moran said, according to The Patriot-News. "We're not aware of any documented evidence this bill would save money in the long run."

To read The Patriot-News story, click here and search using the keywords "Physician-owned facilities get scrutiny."

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