New York imposes stricter policies for freestanding ASC developments — 5 things to know

Angie Stewart - Print  |

ASCs in New York are subject to a new certificate of need policy, according to law firm Garfunkel Wild.

Five things to know:

1. Under the new CON policy, the New York State Department of Health will more closely examine how a proposed freestanding ASC could affect the "continued availability of essential community healthcare services in rural areas."

2. The department would previously only recommend disapproval of an ASC development if the project would likely cause a local hospital to close. It was up to surrounding hospitals to prove that likelihood.

3. Now, the DOH could deny a proposed ASC if it will negatively affect the financial viability of a critical access or sole community hospital.

4. The DOH approved 87 new ASCs between 2008 and 2018, denying just one. Garfunkel Wild expects the approval rate to change, especially in rural areas.

5. The department also changed certificate limitations. For more than a decade, DOH has imposed "limited duration operating certificates" of five years on all new freestanding ASC developments without a hospital owner. Now, DOH will impose a "Limited Life" certificate of five years on any ASC that has a significant change in ownership.

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