Ambulatory surgical centers (ASCs) have become a vital component of the healthcare landscape, offering a range of surgical procedures that do not require an overnight hospital stay. It is important for physicians considering investment or involvement in ASCs to understand not only the operational aspects but also the regulatory environment.
What is a physician-owned ambulatory surgical center?
A physician-owned ambulatory surgical center is a facility where physicians’ provide surgical services and hold stake in ownership. These centers often enable physicians to manage the clinical environment more directly, potentially improving patient outcomes and operational efficiencies.
This ownership model, while beneficial in many ways, also brings a set of strict regulatory scrutiny, particularly at the federal level.
What federal regulations can impact physician-owned ASCs?
Physician-owned ASCs operate under a complex regulatory framework designed to ensure patient safety, high-quality care, and ethical business practices. It is important for physicians to understand these regulations before investing in or operating an ASC.
In addition to meeting state requirements, key federal regulations can include:
- Stark Law: prohibits physician self-referral for certain designated health services payable by Medicare or Medicaid.
- Anti-Kickback Statute: makes it illegal to receive or pay remuneration to induce or reward the referral of business involving any item or service payable by federal healthcare programs.
Violating federal regulations can lead to severe consequences for physicians and the ASCs with which they are affiliated. Penalties can include financial and possible criminal charges which could rise to imprisonment. These consequences underscore the importance of rigorous compliance programs and ongoing legal oversight.
What else should I know before moving forward with an ASC?
For physicians looking into the ASC market, the opportunities for enhanced patient care and potential financial benefits are clear. However, the importance of comprehensive legal understanding and proactive compliance strategies cannot be overstated. Strict adherence to federal regulations not only protects against legal repercussions but also supports the integrity and success of the healthcare services provided.
Physicians can take steps to protect their interests — such as an official review of any offer before moving forward with involvement with an ASC. This careful approach will better safeguard professional interests and promote the highest standards of patient care in the ambulatory surgical setting.
Attorney John Rivas is responsible for this communication.