Bill Text: OH SB309 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To prohibit clinical laboratory services providers from inducing physicians to refer patients in exchange for remuneration and from placing laboratory personnel in physician offices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-10-12 - To Health, Human Services, & Aging [SB309 Detail]

Download: Ohio-2009-SB309-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 309

Senator Miller, R. 

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A BILL

To amend section 3702.31 and to enact sections

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3701.94 and 3701.941 of the Revised Code to

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prohibit clinical laboratory services providers

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from inducing physicians to refer patients in

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exchange for remuneration and from placing

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laboratory personnel in physician offices.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3702.31 be amended and sections	7
3701.94 and 3701.941 of the Revised Code be enacted to read as	8
follows:	9

Sec. 3701.94.  (A) As used in this section and section	10
3701.941 of the Revised Code:	11

(1) "Clinical laboratory services" means the microbiological,	12
serological, chemical, hematological, biophysical, cytological, or	13
pathological examination of materials derived from the human body	14
for purposes of obtaining information for the diagnosis,	15
prevention, treatment, or screening of any disease or impairment	16
or for the assessment of health. "Clinical laboratory services"	17
also means the collection or preparation of specimens for testing.	18

(2) "Clinical laboratory services provider" means any person,	19
or any employee, employer, agent, representative, or other	20
fiduciary of such person, who provides clinical laboratory	21
services.	22

(3) "Group practice" has the same meaning as in section	23
4731.65 of the Revised Code.	24

(4) "Hospital" has the same meaning as in section 3727.01 of	25
the Revised Code.	26

(5) "Physician" means an individual authorized under Chapter	27
4731. of the Revised Code to practice medicine and surgery,	28
osteopathic medicine and surgery, or podiatric medicine and	29
surgery.	30

(B) No clinical laboratory services provider shall, directly	31
or indirectly, offer, give, pay, or deliver, or agree to offer,	32
give, pay, or deliver, any remuneration, in cash or in kind,	33
including any kickback, bribe, or rebate, to any physician or	34
group practice to induce the physician or group practice to do	35
either of the following:	36

(1) Refer patients to the clinical laboratory services	37
provider;	38

(2) Enter into an arrangement whereby the clinical	39
laboratory services provider and the physician or group practice	40
agree to split fees.	41

(C)(1) Subject to division (C)(2) of this section, no	42
clinical laboratory services provider shall give to a physician or	43
group practice, supply the physician or group practice with, or	44
place in the physician's or group practice's office any	45
individual, including an employee, agent, representative, or	46
other fiduciary of the clinical laboratory services provider,	47
whether paid or unpaid, for the purpose of having that individual	48
perform clinical laboratory services for the physician or group	49
practice.	50

(2) Nothing in division (C)(1) of this section prohibits a	51
clinical laboratory services provider from entering into a	52
laboratory management services contract with a hospital, including	53
a contract that requires the clinical laboratory services	54
provider to place employees or agents who perform functions	55
directly related to the provision of clinical laboratory services	56
at the hospital, as long as the contract specifies that the	57
hospital will pay fair market value for the laboratory management	58
services rendered.	59

Sec. 3701.941.  If the director of health determines that a	60
clinical laboratory services provider has violated division (B) or	61
(C) of section 3701.94 of the Revised Code, the director shall	62
impose a civil penalty of not less than one thousand dollars and	63
not more than ten thousand dollars for each day that the clinical	64
laboratory violates either prohibition.	65

Sec. 3702.31.  (A) The quality monitoring and inspection fund	66
is hereby created in the state treasury. The director of health	67
shall use the fund to administer and enforce this section and	68
sections 3702.11 to 3702.20, 3702.30, 3702.301, and 3702.32, and	69
3701.94 of the Revised Code and rules adopted pursuant to those	70
sections. The director shall deposit in the fund any moneys	71
collected pursuant to this section or section 3702.32 or 3701.941	72
of the Revised Code. All investment earnings of the fund shall be	73
credited to the fund.	74

(B) The director of health shall adopt rules pursuant to	75
Chapter 119. of the Revised Code establishing fees for both of the	76
following:	77

(1) Initial and renewal license applications submitted under	78
section 3702.30 of the Revised Code. The fees established under	79
division (B)(1) of this section shall not exceed the actual and	80
necessary costs of performing the activities described in division	81
(A) of this section.	82

(2) Inspections conducted under section 3702.15 or 3702.30 of	83
the Revised Code. The fees established under division (B)(2) of	84
this section shall not exceed the actual and necessary costs	85
incurred during an inspection, including any indirect costs	86
incurred by the department for staff, salary, or other	87
administrative costs. The director of health shall provide to	88
each health care facility or provider inspected pursuant to	89
section 3702.15 or 3702.30 of the Revised Code a written statement	90
of the fee. The statement shall itemize and total the costs	91
incurred. Within fifteen days after receiving a statement from	92
the director, the facility or provider shall forward the total	93
amount of the fee to the director.	94

(3) The fees described in divisions (B)(1) and (2) of this	95
section shall meet both of the following requirements:	96

(a) For each service described in section 3702.11 of the	97
Revised Code, the fee shall not exceed one thousand seven hundred	98
fifty dollars annually, except that the total fees charged to a	99
health care provider under this section shall not exceed five	100
thousand dollars annually.	101

(b) The fee shall exclude any costs reimbursable by the	102
United States centers for medicare and medicaid services as part	103
of the certification process for the medicare program established	104
under Title XVIII of the "Social Security Act," 79 Stat. 286	105
(1935), 42 U.S.C.A. 1395, as amended, and the medicaid program	106
established under Title XIX of the "Social Security Act," 79 Stat.	107
286 (1965), 42 U.S.C. 1396.	108

(4) The director shall not establish a fee for any service	109
for which a licensure or inspection fee is paid by the health care	110
provider to a state agency for the same or similar licensure or	111
inspection.	112

Section 2.  That existing section 3702.31 of the Revised	113
Code is hereby repealed.	114