S T A T E O F N E W Y O R K
________________________________________________________________________
2247
2017-2018 Regular Sessions
I N S E N A T E
January 12, 2017
___________
Introduced by Sen. HANNON -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend the public health and education law, in relation to the
provision of practice management, billing and health information tech-
nology services for healthcare facilities and professionals
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2811 of the public health law, as added by chapter
776 of the laws of 1971 and as renumbered by chapter 649 of the laws of
1975, is amended to read as follows:
§ 2811. Discounts and splitting fees with medical referral services;
prohibited. No hospital or facility delivering health care shall grant
or receive a discount to or from any medical referral service or in any
manner split fees with a medical referral service; PROVIDED, HOWEVER,
THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PROHIBIT SUCH FACILITIES OR
LICENSED PROFESSIONALS FROM PAYING A FAIR MARKET VALUE FEE TO ANY PERSON
OR ENTITY WHOSE PURPOSE IS TO PERFORM PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES BASED UPON A PERCENTAGE OF FEES
BILLED OR COLLECTED, A FLAT FEE, OR ANY OTHER ARRANGEMENT THAT DIRECTLY
OR INDIRECTLY DIVIDES FEES, FOR SUCH PURPOSES, PROVIDED THAT:
1. THE PERSON OR ENTITY PROVIDING PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES IS NOT RESPONSIBLE FOR THE AMOUNT
OF FEES CHARGED AND COLLECTED FOR THE SERVICES RENDERED BY SUCH FACILITY
OR LICENSED PROFESSIONAL;
2. ALL CHARGES COLLECTED ARE PAID DIRECTLY TO THE FACILITY OR TO THE
LICENSED PROFESSIONAL OR ARE DEPOSITED DIRECTLY INTO AN ACCOUNT IN THE
NAME OF AND UNDER THE SOLE CONTROL OF THE FACILITY OR LICENSED PROFES-
SIONAL; AND
3. THE PERSON OR ENTITY PROVIDING PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES DOES NOT REFER PATIENTS TO THE
FACILITY OR LICENSED PROFESSIONAL AND THAT PAYMENTS MADE ARE NOT RELATED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01574-01-7
S. 2247 2
TO OR COMPENSATING FOR THE REFERRAL OF PATIENTS TO THE FACILITY OR
LICENSED PROFESSIONAL.
§ 2. Section 6509-a of the education law, as amended by chapter 555 of
the laws of 1993, is amended to read as follows:
§ 6509-a. Additional definition of professional misconduct; limited
application. Notwithstanding any inconsistent provision of this article
or of any other provision of law to the contrary, the license or regis-
tration of a person subject to the provisions of articles one hundred
thirty-two, one hundred thirty-three, one hundred thirty-six, one
hundred thirty-seven, one hundred thirty-nine, one hundred forty-one,
one hundred forty-three, one hundred forty-four, one hundred fifty-six,
one hundred fifty-nine and one hundred sixty-four of this chapter may be
revoked, suspended or annulled or such person may be subject to any
other penalty provided in section sixty-five hundred eleven of this
article in accordance with the provisions and procedure of this article
for the following:
That any person subject to the above enumerated articles, has directly
or indirectly requested, received or participated in the division,
transference, assignment, rebate, splitting or refunding of a fee for,
or has directly requested, received or profited by means of a credit or
other valuable consideration as a commission, discount or gratuity in
connection with the furnishing of professional care, or service, includ-
ing x-ray examination and treatment, or for or in connection with the
sale, rental, supplying or furnishing of clinical laboratory services or
supplies, x-ray laboratory services or supplies, inhalation therapy
service or equipment, ambulance service, hospital or medical supplies,
physiotherapy or other therapeutic service or equipment, artificial
limbs, teeth or eyes, orthopedic or surgical appliances or supplies,
optical appliances, supplies or equipment, devices for aid of hearing,
drugs, medication or medical supplies or any other goods, services or
supplies prescribed for medical diagnosis, care or treatment under this
chapter, except payment, not to exceed thirty-three and one-third per
centum of any fee received for x-ray examination, diagnosis or treat-
ment, to any hospital furnishing facilities for such examination, diag-
nosis or treatment. Nothing contained in this section shall prohibit
such persons from practicing as partners, in groups or as a professional
corporation or as a university faculty practice corporation nor from
pooling fees and moneys received, either by the partnerships, profes-
sional corporations, university faculty practice corporations or groups
by the individual members thereof, for professional services furnished
by any individual professional member, or employee of such partnership,
corporation or group, nor shall the professionals constituting the part-
nerships, corporations or groups be prohibited from sharing, dividing or
apportioning the fees and moneys received by them or by the partnership,
corporation or group in accordance with a partnership or other agree-
ment; provided that no such practice as partners, corporations or in
groups or pooling of fees or moneys received or shared, division or
apportionment of fees shall be permitted with respect to care and treat-
ment under the workers' compensation law except as expressly authorized
by the workers' compensation law. Nothing contained in this chapter
shall prohibit a medical or dental expense indemnity corporation pursu-
ant to its contract with the subscriber from prorationing a medical or
dental expense indemnity allowance among two or more professionals in
proportion to the services rendered by each such professional at the
request of the subscriber, provided that prior to payment thereof such
professionals shall submit both to the medical or dental expense indem-
S. 2247 3
nity corporation and to the subscriber statements itemizing the services
rendered by each such professional and the charges therefor. NOTHING
CONTAINED IN THIS CHAPTER SHALL PROHIBIT SUCH PROFESSIONALS FROM PAYING
A FAIR MARKET VALUE FEE TO ANY PERSON OR ENTITY WHOSE PURPOSE IS TO
PERFORM PRACTICE MANAGEMENT, BILLING OR HEALTH INFORMATION TECHNOLOGY
SERVICES BASED UPON A PERCENTAGE OF FEES BILLED OR COLLECTED, A FLAT
FEE, OR ANY OTHER ARRANGEMENT THAT DIRECTLY OR INDIRECTLY DIVIDES FEES,
FOR SUCH PURPOSES, PROVIDED THAT:
(1) THE PERSON OR ENTITY PROVIDING PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES IS NOT RESPONSIBLE FOR THE AMOUNT
OF FEES CHARGED AND COLLECTED FOR THE SERVICES RENDERED BY SUCH PROFES-
SIONAL;
(2) ALL CHARGES COLLECTED ARE PAID DIRECTLY TO THE PROFESSIONAL OR ARE
DEPOSITED DIRECTLY INTO AN ACCOUNT IN THE NAME OF AND UNDER THE SOLE
CONTROL OF THE PROFESSIONAL; AND
(3) THE PERSON OR ENTITY PROVIDING PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES DOES NOT REFER PATIENTS TO THE
PROFESSIONAL AND THAT PAYMENTS MADE ARE NOT RELATED TO OR COMPENSATING
FOR THE REFERRAL OF PATIENTS TO THE PROFESSIONAL.
§ 3. Subdivision 19 of section 6530 of the education law, as added by
chapter 606 of the laws of 1991, is amended to read as follows:
19. Permitting any person to share in the fees for professional
services, other than: a partner, employee, associate in a professional
firm or corporation, professional subcontractor or consultant authorized
to practice medicine, or a legally authorized trainee practicing under
the supervision of a licensee. This prohibition shall include any
arrangement or agreement whereby the amount received in payment for
furnishing space, facilities, equipment or personnel services used by a
licensee constitutes a percentage of, or is otherwise dependent upon,
the income or receipts of the licensee from such practice, except as
otherwise provided by law with respect to a facility licensed pursuant
to article twenty-eight of the public health law or article thirteen of
the mental hygiene law. NOTHING CONTAINED IN THIS CHAPTER SHALL PROHIB-
IT SUCH PROFESSIONALS FROM PAYING A FAIR MARKET VALUE FEE TO ANY PERSON
OR ENTITY WHOSE PURPOSE IS TO PERFORM PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES BASED UPON A PERCENTAGE OF FEES
BILLED OR COLLECTED, A FLAT FEE, OR ANY OTHER ARRANGEMENT THAT DIRECTLY
OR INDIRECTLY DIVIDES FEES, FOR SUCH PURPOSES, PROVIDED THAT:
(A) THE PERSON OR ENTITY PROVIDING PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES IS NOT RESPONSIBLE FOR THE AMOUNT
OF FEES CHARGED AND COLLECTED FOR THE SERVICES RENDERED BY SUCH PROFES-
SIONAL;
(B) ALL CHARGES COLLECTED ARE PAID DIRECTLY TO THE PROFESSIONAL OR ARE
DEPOSITED DIRECTLY INTO AN ACCOUNT IN THE NAME OF AND UNDER THE SOLE
CONTROL OF THE PROFESSIONAL; AND
(C) THE PERSON OR ENTITY PROVIDING PRACTICE MANAGEMENT, BILLING OR
HEALTH INFORMATION TECHNOLOGY SERVICES DOES NOT REFER PATIENTS TO THE
PROFESSIONAL AND THAT PAYMENTS MADE ARE NOT RELATED TO OR COMPENSATING
FOR THE REFERRAL OF PATIENTS TO THE PROFESSIONAL.
§ 4. This act shall take effect immediately.
