S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    193
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced by M. of A. BUCHWALD -- read once and referred to the Commit-
   tee 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01574-01-7

 A. 193                              2
 
 FACILITY OR LICENSED PROFESSIONAL AND THAT PAYMENTS MADE ARE NOT RELATED
 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

 A. 193                              3
 
 professionals  shall submit both to the medical or dental expense indem-
 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.