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New “One Room” Law Eases Restrictions on Surgical Practices In NJ

By on January 22, 2018 in Legislation with 0 Comments

On January 12, 2018, the New Jersey Legislature signed the “One Room” bill (A-4995/S-278) into law. The “One Room” law is set to bring much needed relief to surgical facilities in the State of New Jersey. Under the new law, surgical practices may apply for licensure as ambulatory care facilities with the New Jersey Department of Health (NJDoH) within one year of the effective date of this legislation. As a condition of registration with the NJDoH, surgical practices must obtain a certification from the Centers of Medicare and Medicaid Services (CM&MS) as an ambulatory surgery center provider or otherwise acquire and maintain accreditation from an accrediting body recognized by the CM&MS.  Obtaining licensure from the NJDoH will exempt registered surgical centers from the current restrictive “physical plant standards” overseen by the New Jersey Board of Medical Examiners.  One room surgical facilities will be exempt from  ambulatory care facility gross receipts assessment and licensing fees.

The new law reduces the regulatory burden of selling or expanding a surgical practice. Specifically, the “One Room” law allows for physicians who are not owners of the surgical practice, to use a facility. In addition, the new law paves the way for health systems and ambulatory surgery center management companies to directly invest in surgical centers. Similarly, registered surgical centers are now permitted to combine with other surgical facilities to expand their operation.

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Sheila Mints

About the Author

About the Author:

Ms. Mints specializes in healthcare transactional matters, including shareholder and employment agreements, purchases and sales of medical practices, including ACO transactions, and practice mergers. Ms. Mints acts as general counsel to many large practices and ambulatory care facilities, assisting with transactional, tax, human resources mattes and negotiation with payors and vendors. An experienced tax lawyer, Ms. Mints represents her clients before the Internal Revenue Service, the federal Tax Court and state taxation departments in a variety of tax matters.

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