April 23, 2009

Sweeping Changes to New Jersey’s Codey Law

Governor Jon S. Corzine signed into law Senate Bill 787 on March 21, 2009, significantly amending New Jersey’s physician self-referral law, known as "the Codey Law" for its sponsor, state Senator Richard J. Codey. The adoption of Senate Bill 787 is intended to provide guidance concerning the scope of physician investment in and referrals to ambulatory surgery centers. In so doing, S787 makes considerable changes to the way ambulatory surgery centers will be owned and regulated in New Jersey, with the ultimate effect of "leveling the playing field" between freestanding and hospital-based surgery centers. S787 also removes statutory exceptions for physician self-referrals for lithotripsy and radiation therapy services, which have been in the Codey Law since 1991.

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