06/30/2015

Ohio Budget Includes Changes to ASC Transfer Agreements

OAASC Requests Governor Veto

The Ohio legislature has wrapped up its works on the two year state budget and inserted two amendments that impact ASCs on transfer agreements and requests for variances to the transfer agreement requirement. 

The changes came on the last days of legislative negotiation with limited consultation with impacted medical associations. 

As a result, the OAASC requested that Governor Kasich use his line item veto authority to remove the language in House Bill 64 that would negatively impact access to care in Ohio, especially in our more rural communities who already struggle to obtain needed services.  OAASC Veto Request

The two amendments would:

• Would require ASC to have a transfer agreement with a hospital no greater than 30 miles from the center or a consulting physician who has admitting privileges to a hospital within 30 miles.

• For centers that have a variance to a transfer agreement, ODH will need to approve the variance within 60 days or the center's license is cancelled.  ODH does not need to provide explanation for no decision. 

The OAASC believes the 30 mile transfer agreement and variance language would have unintended consequences that can lead to access to care issues for Ohioans that are in need of outpatient surgical care provided in our centers. We would like to work with the Ohio General Assembly to have a thoughtful discussion about language that will address their concerns without harming Ohio’s ambulatory surgery centers unintentionally.  

While most ambulatory surgical facilities would have a local hospital within 30 miles, there are areas of the state that are in high need of access to healthcare and the 30 mile restriction may make it difficult for our members to expand services to high need areas in the state.

Additionally, the changes regarding the timeframe for variance approval are a concern for centers if there is not also an accompanying reason for the denial of the variance.  In this case, an ASC would have no idea of how to correct any deficiencies in their application or how to continue to serve their patients.

The Governor is reviewing the budget and any possible line item vetoes.  We will keep members posted on the outcome.