4 regulations to be aware of when opening an ASC

The number of physicians investing in ASCs is increasing rapidly, but there are several state and federal regulations that buyers and investors should be aware of before taking the leap. 

From the federal Anti-Kickback Statute, to the state level Texas Corporate Practice of Medicine Doctrine, JDSupra compiled a list of regulations for future ASC owners to know. 

Four regulations to be aware of: 

1. The federal Anti-Kickback Statute: This statute prevents physicians that practice at an ASC and a secondary practice from referring themselves to a patient. It also requires that the physician's ASC serve as an extension of their practice, not as its own practice. One third of the physician's annual income must come from the ASC. 

2. The Texas Corporate Practice of Medicine Doctrine: Texas limits who can open medical practices, and how they can operate. ASCs have to follow special rules on how their employees and physicians are paid. 

3. The federal Centers for Medicare and Medicaid Services Certification and Reporting Requirements: ASCs are required to report all quality of care data and standardization measures to the CMS, and they have to be approved by and enter a written agreement with CMS. 


4. Texas' ASC Licensing Act: This Texas code outlines the fees, licensing requirements, exemptions, standards and inspections that ASCs have to comply with, including the requirement to file with the secretary of state, submit a $5,200 licensing fee and receive an IRS letter.

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