Flaster/Greenberg P.C.

N.J. Codey Ruling, 'A Dramatic Threat' to N.J. Ambulatory Surgical Centers

Published in Surgery Litigation and Law Weekly, December 28th, 2007

On November 20, 2007, a New Jersey court ruled that the referral of a patient to an ambulatory surgical center ("ASC") in which the referring physician owns an interest -- an everyday occurrence throughout the State -- violates the New Jersey anti-self- referral law, commonly known as the Codey Act. N.J.S.A. 45:9-22.5.

This ruling has potentially devastating consequences for every ambulatory surgical center in New Jersey. There are approximately 100 physician-owned ASCs in the State that deliver services in a far more efficient way than they could be delivered in the State's hospitals. If the ASCs suddenly closed, the hospitals could not handle the volume of patients....

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Source: Surgery Litigation and Law Weekly (2007-12-28)

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