Bill > A5828

Introduced Session

This bill removes the requirements under current law for surgical practices to become licensed by the Department of Health (department) as ambulatory care facilities licensed to provide surgical and related services. Instead, surgical practices will be required to register with the department, with such registration having a fee of $1,000 and the registration being effective for 5 years. Current law defines a "surgical practice" to mean a structure or suite of rooms that has the following characteristics: has no more than one room dedicated for use as an operating room which is specifically equipped to perform surgery, and is designed and constructed to accommodate invasive diagnostic and surgical procedures; has one or more post-anesthesia care units or a dedicated recovery area where the patient may be closely monitored and observed until discharged; and is established by a physician, physician professional association surgical practice, or other professional practice form specified by the State Board of Medical Examiners pursuant to regulation solely for the physician's, association's, or other professional entity's private medical practice. Pursuant to the enactment of P.L.2017, c.283, all surgical practices were required to become licensed as ambulatory care facilities specifically authorized to provide surgical and related services. This bill removes those requirements and instead only requires surgical practices to register with the department. This bill further defines the accreditation entities for surgical practices, and makes clear the relief from certain regulatory obligations based upon such accreditation. The bill removes the various restrictions and limited circumstances surrounding new licensing of ambulatory care facilities. The bill retains the exemption from the ambulatory care facility assessment for any registered surgical practice. The bill removes the current moratorium that prohibits the department from issuing a new registration to any surgical practice. It is the sponsor's intent that this bill will promote the development of new surgical practices and ambulatory care facilities licensed and registered to provide surgical and related services in the State. Hospital operating rooms in the State are working at capacity, which often times results in understaffing, employee burnout, delays in critical surgeries, and scheduling challenges for elective and non-emergent surgeries. It is the sponsor's belief that loosening the restrictions for the establishment of new surgical practices and ambulatory care facilities licensed and registered to provide surgical services will help lower healthcare costs, increase patient options for surgical procedures, and increase efficiency and quality of care within the State's healthcare system. The restrictions established under the current law originated out of a concern of physician "self-dealing" or referring patients to a practice, in which the physician had a financial interest. Today, these concerns are less significant as many physicians are required to regularly disclose ownership interests in other health care practices and the increased access to different surgical options for patients would provide a greater benefit in terms of patient access, timeliness, and healthcare cost savings.

AI Summary

Committee Categories

Shanique Speight (D)*, 

Introduced, Referred to Assembly Health Committee (on 06/16/2025)

Official Document