S T A T E O F N E W Y O R K
________________________________________________________________________
4718
2017-2018 Regular Sessions
I N A S S E M B L Y
February 3, 2017
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Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Health
AN ACT to amend the public health law, in relation to prohibiting
payment for patient referrals in substance use disorder services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public health law is amended by adding a new section
238-f to read as follows:
§ 238-F. PROHIBITION OF FINANCIAL ARRANGEMENTS AND REFERRALS;
SUBSTANCE USE DISORDER SERVICES. 1. DEFINITIONS. THE FOLLOWING DEFI-
NITIONS SHALL APPLY FOR THE PURPOSES OF THIS SECTION:
(A) "SUBSTANCE USE DISORDER SERVICES" SHALL MEAN AND INCLUDE EXAMINA-
TION, EVALUATION, DIAGNOSIS, CARE, TREATMENT, REHABILITATION, OR TRAIN-
ING OF PERSONS WITH SUBSTANCE USE DISORDERS AND THEIR FAMILIES OR
SIGNIFICANT OTHERS BY A HEALTH CARE PROVIDER.
(B) "ADDICTION TREATMENT PROVIDERS" SHALL MEAN AND INCLUDE REHABILI-
TATION CENTERS, MEDICAL EXAMINATION FACILITIES, OR SUCH OTHER FACILITIES
THAT ENGAGE IN SUBSTANCE USE DISORDER SERVICES INCLUDING ANY EMPLOYEES
OR INDIVIDUALS UNDER ANOTHER AUTHORIZED FORM OF ASSOCIATION WITH SUCH
PROVIDERS.
2. IT SHALL BE UNLAWFUL FOR ANY ADDICTION TREATMENT PROVIDER OR FAMILY
MEMBER THEREOF TO OFFER, PAY, SOLICIT, OR RECEIVE ANY FEE, THING OF
VALUE, COMMISSION, BONUS, REBATE, KICKBACK, OR BRIBE, DIRECTLY OR INDI-
RECTLY, IN CASH OR IN KIND, OR ENGAGE IN ANY SPLIT-FEE ARRANGEMENT, IN
ANY FORM WHATSOEVER, TO INDUCE OR IN RETURN FOR THE REFERRAL OF PATIENTS
OR PATRONAGE TO OR FROM ADDICTION TREATMENT PROVIDERS.
3. THIS SECTION SHALL NOT APPLY TO PAYMENT FOR GOODS OR FACILITIES
THAT WERE ACTUALLY FURNISHED OR SERVICES THAT WERE ACTUALLY PERFORMED.
SUCH PAYMENT MUST BE REASONABLY RELATED TO THE FAIR MARKET VALUE OF THE
GOODS OR FACILITIES THAT WERE ACTUALLY FURNISHED OR SERVICES THAT WERE
ACTUALLY PERFORMED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01930-01-7
A. 4718 2
4. THIS SECTION SHALL NOT APPLY TO ANY DISCOUNT, PAYMENT, WAIVER OF
PAYMENT, OR PAYMENT PRACTICE NOT PROHIBITED BY 42 U.S.C. § 1320A-7B (B)
OR REGULATIONS PROMULGATED THEREUNDER.
5. VIOLATION OF SUBDIVISION TWO OF THIS SECTION SHALL CONSTITUTE A
CLASS E FELONY.
§ 2. This act shall take effect immediately.