Scott Becker, JD, Partner at McGuireWoods and chairman of the firm's healthcare department, discusses whether spine surgeons can legally own interest in ambulatory surgery centers. Question: Can a spine surgeon legally own interests in an ASC?
Scott Becker: Yes. It is not illegal for a spine surgeon to own interests in ASC. However, a spine surgeon can generally not meet the 1/3 test(s) for medical practice income and thus cannot meet the ASC safe harbor. Further a spine surgeon should not be permitted to invest because he or she generates referrals for pain management physicians. In some states, any indirect referrals are illegal under state law, ie referrals to an ASC where the surgeon doesn't perform the procedure directly. The failure to meet a safe harbor can create some other problems but it doesn't mean that an ASC is illegal.
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Scott Becker: Yes. It is not illegal for a spine surgeon to own interests in ASC. However, a spine surgeon can generally not meet the 1/3 test(s) for medical practice income and thus cannot meet the ASC safe harbor. Further a spine surgeon should not be permitted to invest because he or she generates referrals for pain management physicians. In some states, any indirect referrals are illegal under state law, ie referrals to an ASC where the surgeon doesn't perform the procedure directly. The failure to meet a safe harbor can create some other problems but it doesn't mean that an ASC is illegal.
More Articles on Surgery Centers:
5 Ways to Boost Profits at Cash-Strapped ASCs
Outlook for De Novo ASCs in 2013 and Beyond: Q&A With Luke Lambert of ASCOA
5 Key Metrics Profitable ASCs Track