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S. B. No. 26 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
To amend section 3702.31 and to enact sections
3701.94 and 3701.941 of the Revised Code to
prohibit providers of clinical laboratory services
from inducing physicians to refer patients in
exchange for remuneration and from placing
laboratory personnel in physician offices.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 3702.31 be amended and sections
3701.94 and 3701.941 of the Revised Code be enacted to read as
follows:
Sec. 3701.94. (A) As used in this section and section
3701.941 of the Revised Code:
(1) "Clinical laboratory services" means the microbiological,
serological, chemical, hematological, biophysical, cytological, or
pathological examination of materials derived from the human body
for purposes of obtaining information for the diagnosis,
prevention, treatment, or screening of any disease or impairment
or for the assessment of health. "Clinical laboratory services"
also means the collection or preparation of specimens for testing.
(2) "Clinical laboratory services provider" means any person,
or any employee, employer, agent, representative, or other
fiduciary of such person, who provides clinical laboratory
services.
(3) "Group practice" has the same meaning as in section
4731.65 of the Revised Code.
(4) "Hospital" has the same meaning as in section 3727.01 of
the Revised Code.
(5) "Physician" means an individual authorized under Chapter
4731. of the Revised Code to practice medicine and surgery,
osteopathic medicine and surgery, or podiatric medicine and
surgery.
(B) No clinical laboratory services provider shall, directly
or indirectly, offer, give, pay, or deliver, or agree to offer,
give, pay, or deliver, any remuneration, in cash or in kind,
including any kickback, bribe, or rebate, to any physician or
group practice to induce the physician or group practice to do
either of the following:
(1) Refer patients to the clinical laboratory services
provider;
(2) Enter into an arrangement whereby the clinical laboratory
services provider and the physician or group practice agree to
split fees.
(C)(1) Subject to division (C)(2) of this section, no
clinical laboratory services provider shall give to a physician or
group practice, supply the physician or group practice with, or
place in the physician's or group practice's office any
individual, including an employee, agent, representative, or other
fiduciary of the provider, whether paid or unpaid, for the purpose
of having that individual perform clinical laboratory services for
the physician or group practice.
(2) Nothing in division (C)(1) of this section prohibits a
clinical laboratory services provider from entering into a
laboratory management services contract with a hospital, including
a contract that requires the provider to place employees or agents
who perform functions directly related to the provision of
clinical laboratory services at the hospital, as long as the
contract specifies that the hospital will pay fair market value
for the laboratory management services rendered.
Sec. 3701.941. If the director of health determines that a
clinical laboratory services provider has violated division (B) or
(C) of section 3701.94 of the Revised Code, the director shall
impose on the provider a civil penalty of not less than one
thousand dollars and not more than ten thousand dollars for each
day that the provider violates either division.
Sec. 3702.31. (A) The quality monitoring and inspection fund
is hereby created in the state treasury. The director of health
shall use the fund to administer and enforce this section and
sections 3702.11 to 3702.20, 3702.30, 3702.301, and 3702.32, and
3701.94 of the Revised Code and rules adopted pursuant to those
sections. The director shall deposit in the fund any moneys
collected pursuant to this section or section 3702.32 or 3701.941
of the Revised Code. All investment earnings of the fund shall be
credited to the fund.
(B) The director of health shall adopt rules pursuant to
Chapter 119. of the Revised Code establishing fees for both of the
following:
(1) Initial and renewal license applications submitted under
section 3702.30 of the Revised Code. The fees established under
division (B)(1) of this section shall not exceed the actual and
necessary costs of performing the activities described in division
(A) of this section.
(2) Inspections conducted under section 3702.15 or 3702.30 of
the Revised Code. The fees established under division (B)(2) of
this section shall not exceed the actual and necessary costs
incurred during an inspection, including any indirect costs
incurred by the department for staff, salary, or other
administrative costs. The director of health shall provide to each
health care facility or provider inspected pursuant to section
3702.15 or 3702.30 of the Revised Code a written statement of the
fee. The statement shall itemize and total the costs incurred.
Within fifteen days after receiving a statement from the director,
the facility or provider shall forward the total amount of the fee
to the director.
(3) The fees described in divisions (B)(1) and (2) of this
section shall meet both of the following requirements:
(a) For each service described in section 3702.11 of the
Revised Code, the fee shall not exceed one thousand seven hundred
fifty dollars annually, except that the total fees charged to a
health care provider under this section shall not exceed five
thousand dollars annually.
(b) The fee shall exclude any costs reimbursable by the
United States centers for medicare and medicaid services as part
of the certification process for the medicare program established
under Title XVIII of the "Social Security Act," 79 Stat. 286
(1935), 42 U.S.C.A. 1395, as amended, and the medicaid program
established under Title XIX of the "Social Security Act," 79 Stat.
286 (1965), 42 U.S.C. 1396.
(4) The director shall not establish a fee for any service
for which a licensure or inspection fee is paid by the health care
provider to a state agency for the same or similar licensure or
inspection.
Section 2. That existing section 3702.31 of the Revised Code
is hereby repealed.
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