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House and Senate Vote to Eliminate Imaging Center License for ASCs

Budget Heads to Governor for Signature

Ohio House and Senate Vote to Eliminate Imaging Center Licensure for ASCs 


Measure Heads to Governor for Signature


After weeks of wrangling over how to fund the state's two year budget, the Ohio House and Senate last night both passed the compromise version of the budget that includes language eliminating Diagnostic Imaging Center Licensure for ASCs.


The language states than an ASC does not need both an ASC license AND a diagnostic imaging center license when radiology equipment is used in any part (prior, during or after) of a surgical procedure.


Most surgery centers have been required to obtain a freestanding diagnostic imaging center license if they use certain radiology equipment in their facility. This is in addition to their health care facility (or ASC) license needed to operate as a surgery center.


The legislature's actions, which were at the request of the OAASC, will save ASCs up to $1500 a year in license and inspection fees.


The budget now goes to the Governor for his signature and any line item vetoes.


The Ohio Department of Health was supportive and assisted in developing the language. Therefore, it is not anticipated that the Governor will veto the language.


This is a major step in streamlining regulations for ASCs and reducing costs.


Special thanks to the OAASC Government Affairs Committee for their hard work on this issue.


Other components of the budget that might impact ASCs include:


  • Medicaid community provider rate cuts: Ambulatory Surgery Centers, durable medical equipment supplies, home health services, ambulance/ambulettes and all waiver program providers are cut by 3%
  • 20% increase in radiation fees has been restored (went into effect on 7/1/09 by rule)
  • Prior Authorization for High-Technology Radiological Services: Removes the bill's provision that prohibits ODJFS and Medicaid managed care organizations from reimbursing a provider for providing a high-technology radiological service to a Medicaid recipient unless the service is prior authorized in accordance with rules
  • Advanced Diagnostic Imaging Services: Requires ODJFS to implement evidence-based, best practice guidelines or protocols and decision support tools for advanced diagnostic imaging services available under the fee-for-service component of the Medicaid program not later than January 1, 2010
  • Medicaid Fraud Waste and Abuse Report: While the requirement for ODJFS to produce this report remains, they are no longer required to collaborate with staff from the Attorney General and the Auditor of State Further, their report is to be distributed to every member of the General Assembly
  • Notice of Medicaid Provider Agreement Termination: Restores the bill's House-passed provision specifying that if a Medicaid provider fails to provide to ODJFS the national Provider Identifier assigned to the provider, the Department may deny, terminate, or not renew a provider agreement by sending notice to the provider by certified mail
  • Removes provisions requiring Medicaid managed care organizations to abide by the state prompt payment law
  • Medicaid Provider Surety Bond: Removes the provision requiring Medicaid providers to obtain a surety bond
  • Removes the requirement for ODJFS to study the idea of prior authorizations for all Medicaid services


For more information, contact OAASC Mike Carroll or Randy Leffler at 614-358-0177

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