House File 2478 - Introduced HOUSE FILE BY ALONS, WINDSCHITL, BAUDLER, DE BOEF, CHAMBERS, MERTZ, ANDERSON, HEATON, QUIRK, PETTENGILL, and HORBACH Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the definition and regulation of outpatient 2 surgical facilities or ambulatory surgical centers and 3 providing for fees. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6335YH 82 6 pf/nh/24 PAG LIN 1 1 Section 1. Section 135.61, subsection 21, Code 2007, is 1 2 amended to read as follows: 1 3 21. "Outpatient surgical facility" meansaall of the 1 4 following: 1 5 a. A facility which as its primary function provides, 1 6 through an organized medical staff and on an outpatient basis 1 7 to patients who are generally ambulatory, surgical procedures 1 8 not ordinarily performed in a private physician's office, but 1 9 not requiring twenty=four hour hospitalization, and which is 1 10neithernot a part of a hospital nor is owned wholly or in 1 11 part by a hospital, nor is it the private office of a health 1 12 care provider who there engages in the lawful practice of 1 13 surgery."Outpatient surgical facility" includes a1 14 b. A facility certified or seeking certification as an 1 15 ambulatory surgical center, under the federal Medicare program 1 16 or under the medical assistance program established pursuant 1 17 to chapter 249A. 1 18 c. A facility that provides for the performing or inducing 1 19 of any second or third trimester abortions or five or more 1 20 first trimester abortions per month. 1 21 Sec. 2. NEW SECTION. 135O.1 DEFINITIONS. 1 22 As used in this chapter, unless the context otherwise 1 23 requires: 1 24 1. "Ambulatory surgical center" means an outpatient 1 25 surgical facility as defined in section 135.61 or an 1 26 ambulatory surgical facility as defined in section 514.5. 1 27 2. "Department" means the department of inspections and 1 28 appeals. 1 29 Sec. 3. NEW SECTION. 135O.2 LICENSES == FEES == 1 30 CRITERIA. 1 31 1. A person shall not operate an ambulatory surgical 1 32 center in this state without first obtaining a license from 1 33 the department after meeting the requirements of this chapter. 1 34 The application shall be on a form prescribed by the 1 35 department and shall require information the department deems 2 1 necessary. Each application for license shall be accompanied 2 2 by a nonrefundable biennial license fee determined by the 2 3 department. 2 4 2. The ambulatory surgical center shall meet the 2 5 requirements of 42 C.F.R. } 416 before a license is issued. 2 6 The department of inspections and appeals shall provide the 2 7 necessary personnel to inspect the ambulatory surgical center 2 8 to determine if the ambulatory surgical center complies with 2 9 necessary requirements before a license is issued. Ambulatory 2 10 surgical centers that are certified under the federal Medicare 2 11 program and thereby meet the requirements of 42 C.F.R. } 416 2 12 shall be licensed without inspection by the department of 2 13 inspections and appeals. 2 14 Sec. 4. NEW SECTION. 135O.3 DENIAL, SUSPENSION, OR 2 15 REVOCATION OF LICENSE. 2 16 The department may deny, suspend, or revoke a license if 2 17 the department determines an ambulatory surgical center fails 2 18 to comply with this chapter or the rules adopted under this 2 19 chapter. A denial, suspension, or revocation may be appealed 2 20 under chapter 17A. The department may reissue a license 2 21 following a suspension or revocation after the ambulatory 2 22 surgical center corrects the conditions upon which the 2 23 suspension or revocation was based. 2 24 Sec. 5. NEW SECTION. 135O.4 LIMITATION, EXPIRATION, AND 2 25 RENEWAL OF LICENSE. 2 26 A license for an ambulatory surgical center shall be issued 2 27 only for the premises, person, or facility named in the 2 28 application and is not transferable or assignable. A license, 2 29 unless sooner suspended or revoked, shall expire two years 2 30 after the date of issuance and shall be renewed biennially 2 31 upon an application by the licensee. Application for renewal 2 32 shall be made in writing to the department at least thirty 2 33 days prior to the expiration of the license. The fee for a 2 34 license renewal shall be determined by the department. 2 35 Sec. 6. NEW SECTION. 135O.5 RULES. 3 1 Except as otherwise provided in this chapter, the 3 2 department shall adopt rules pursuant to chapter 17A necessary 3 3 to implement this chapter, subject to approval of the state 3 4 board of health. Formulation of the rules shall include 3 5 consultation with persons affected by this chapter. 3 6 Sec. 7. Section 514.5, Code 2007, is amended to read as 3 7 follows: 3 8 514.5 CONTRACTS FOR SERVICE. 3 9 1. A hospital service corporation organized under chapter 3 10 504, Code 1989, or current chapter 504 may enter into 3 11 contracts for the rendering of hospital service to any of its 3 12 subscribers with hospitals maintained and operated by the 3 13 state or any of its political subdivisions, or by any 3 14 corporation, association, or individual. Such hospital 3 15 service corporation may also contract with an ambulatory 3 16 surgical facility to provide surgical services to the 3 17 corporation's subscribers. Hospital service is meant to 3 18 include bed and board, general nursing care, use of the 3 19 operating room, use of the delivery room, ordinary medications 3 20 and dressings and other customary routine care. "Ambulatory 3 21 surgical facility" means a facility constructed and operated 3 22 for the specific purpose of providing surgery to patients 3 23 admitted to and discharged from the facility within the same 3 24 day or an "outpatient surgical facility" as defined in section 3 25 135.61. 3 26 2. A medical service corporation organized under this 3 27 chapter may enter into contracts with subscribers to furnish 3 28 health care service through physicians and surgeons, dentists, 3 29 podiatric physicians, osteopathic physicians, osteopathic 3 30 physicians and surgeons, or chiropractors. 3 31 3. Any pharmaceutical or optometric service corporation 3 32 organized under the provisions of said chapter may enter into 3 33 contracts for the rendering of pharmaceutical or optometric 3 34 service to any of its subscribers. Membership in any 3 35 pharmaceutical service corporation shall be open to all 4 1 pharmacies licensed under chapter 155A. 4 2 4. A hospital service corporation or medical service 4 3 corporation organized under this chapter may enter into 4 4 contracts with subscribers and providers to furnish health 4 5 care services not otherwise allocated by this section. 4 6 EXPLANATION 4 7 This bill defines an outpatient surgical facility or 4 8 ambulatory surgical center to include any facility that 4 9 provides for performing or inducing any second or third 4 10 trimester abortions or five or more first trimester abortions 4 11 per month, thereby making these establishments subject to 4 12 certificate of need requirements and other regulatory 4 13 provisions to which outpatient surgical facilities or 4 14 ambulatory surgical centers are subject. The bill also amends 4 15 the definition of an outpatient surgical facility to exclude 4 16 facilities that are owned wholly or in part by a hospital. 4 17 The bill also requires that ambulatory surgical centers be 4 18 licensed and meet the requirements of the centers for Medicare 4 19 and Medicaid services of the United States department of 4 20 health and human services for ambulatory surgical centers. 4 21 LSB 6335YH 82 4 22 pf/nh/24.3