S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4736

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 13, 2015
                               ___________

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:
  S 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.
                                                           LBD10439-01-5
              

S. 4736                             2

TO  OR  COMPENSATING  FOR  THE  REFERRAL  OF PATIENTS TO THE FACILITY OR
LICENSED PROFESSIONAL.
  S 2. Section 6509-a of the education law, as amended by chapter 555 of
the laws of 1993, is amended to read as follows:
  S 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. 4736                             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.
  S  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.
  S 4. This act shall take effect immediately.