Noncompetes, CON and more policy changes shaking up ASCs

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From new regulations surrounding noncompete clauses to certificate-of-need updates, there have been recent legislative changes at both the state level that will impact the business and operations of ASCs. 

Here are five recent legislative updates for ASC leaders and physicians to know:

1. Iowa House lawmakers have passed a bill that would prohibit noncompete agreements in employment contracts for physicians employed by the University of Iowa Health Care Feb. 26. 

2. Companion bills in the Maryland Senate and House propose removing an exception to the state’s certificate-of-need laws. Under the bills, healthcare facility mergers would require a CON or Maryland Health Care Commission approval. Previously, those mergers could qualify for an exemption. The bills propose requiring healthcare entities to provide a 90-day notice to the commission before completing any merger, acquisition or material transaction. 

3. Lawmakers in Michigan recently heard testimony on a bill that would establish licensure for anesthesiologist assistants in the state. According to a March 5 news release by the Michigan State Medical Society, the bill was introduced by Representative David Prestin, a Republican from Cedar River. It would amend current law to recognize and regulate certified AAs as licensed health professionals practicing under physician supervision. 

4. A bill introduced in the Colorado state legislature would dramatically expand state oversight of healthcare deals, creating new, standalone notification and review authority, even for transactions that don’t trigger federal antitrust review, according to a Feb. 6 article from law firm Husch Blackwell published in JDSupra. Under the bill, which Husch Blackwell dubbed a “mini Stark law,” the Colorado attorney general would be explicitly authorized to prohibit deals or delay closings if a transaction may reduce competition, create a monopoly or otherwise harm consumer welfare. 

5. There are several advocacy wins for both physicians and patients in the new federal budget that was approved by the House in a 341 to 88 vote on Jan. 22. This included: a two-year expansion of Medicare telehealth coverage; a 3.1% bonus for physicians participating in Medicare alternative payment models; new Medicare Advantage requirements; a five-year extension of a waiver for Acute Hospital Care at Home, among other updates. 

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

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