A bill in the California state legislature to ban certain types of physician leasing arrangements has passed out of a key committee.
S.B. 736 targets certain types of leasing arrangements in which referring physicians lease blocks of time on imaging equipment, then bill insurance payors directly for the technical component of imaging studies, after paying the equipment owner a "leasing" fee. The referring physicians are able to pocket the difference between the leasing fee and the insurance reimbursement.
The bill attempts to stop the practice by requiring the individual or entity that provided the technical component of MRI, PET, and CT diagnostic imaging procedures to directly bill the patient or responsible third-party payor and not the referring physician. The bill does not prohibit any referring physician from billing for the professional component of these tests, such as the physician interpretation and report of the study.
S.B. 736 passed out of the Assembly Business and Professions Committee last week on a 6-3 vote, according to the California Radiological Society, which is backing the legislation. The bill now moves to the Assembly Appropriations Committee for a hearing in August.
By AuntMinnie.com staff writers
July 10, 2006
Related Reading
California bill targets imaging lease arrangements, April 27, 2006
As more referrers demand leases, rads hope for legal crackdown, May 5, 2005
States, payors seek to stem tide of self-referral abuse, October 29, 2004
Stark II interim final rule leaves huge self-referral loophole, July 20, 2004
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