Revision: Feb. 16, 2012, midnight
HB 1725-FN – AS INTRODUCED
2012 SESSION
01/09
HOUSE BILL 1725-FN
AN ACT prohibiting health care practitioner self-referrals for medical devices.
SPONSORS: Rep. Jasper, Hills 27; Rep. Hess, Merr 9; Rep. Chandler, Carr 1; Rep. Bettencourt, Rock 4; Rep. G. Richardson, Merr 4; Rep. Pierce, Graf 9; Rep. Hagan, Rock 7; Rep. O'Brien, Hills 4; Rep. Wall, Straf 7; Sen. Lambert, Dist 13; Sen. Luther, Dist 12
This bill prohibits health care practitioners, including physicians, from referring, recommending, ordering, or arranging medical devices to patients under their care if the medical device is supplied directly or indirectly by an entity in which the referring practitioner has a substantial direct or indirect financial interest.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12-3071
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT prohibiting health care practitioner self-referrals for medical devices.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Prohibited Self-Referrals. Amend RSA 125 by inserting after section 25-c the following new subdivision:
125:25-d Prohibited Self-Referrals.
I. In this subdivision:
(a) “Health care practitioner” means “health care practitioner” as defined in RSA 125:25-a.
(b) “Medical device” means any Food and Drug Administration class II or III implantable medical device.
(c) “Ownership interest” means any and all ownership interest by a health care practitioner or such person’s spouse or child, including, but not limited to, any membership, proprietary interest, stock interest, partnership interest, co-ownership in any form, or any profit-sharing arrangement. It shall not include ownership of investment securities purchased by the health care practitioner on terms available to the general public and which are publicly traded; provided that “ownership interest” shall include any ownership interest exceeding 5 percent of publicly traded investment securities issued by a single entity.
II. Notwithstanding any provision of law to the contrary, a health care practitioner shall not:
(a) Profit indirectly or directly from selling, reselling, distributing, or prescribing any medical device.
(b) Refer a person for receipt of medical devices if the health care practitioner has or his or her immediate family has an ownership interest in the sale or distribution of the medical device.
(c) Enter into a contract or business arrangement with another entity where the purpose or effect of the contract or business arrangement is to accomplish prohibited self-referrals indirectly, through the use of a third party, or through the use of a cross-referral agreement. Such prohibited contracts or business arrangements shall include any arrangement that requires the purchase of such medical devices from a specific vendor or distributor as a condition of, or incident to the provision of medical care by the health care practitioner.
(d) Offer, deliver, receive, or accept, indirectly or directly, any rebate, commission, preference, patronage dividend, discount, or other consideration, whether in the form of money or otherwise, as compensation or inducement for a medical device referral.
III. No claim for payment shall be presented to any individual, third party payer, or other entity, for any medical device or health care service provided incident to the provision of a medical device furnished pursuant to a referral prohibited by this subdivision.
IV Failure to comply with this subdivision shall constitute an unfair or deceptive act or practice in violation of RSA 358-A.
V. In addition to penalties pursuant to paragraph IV, violators of this subdivision may be fined up to $5,000 per procedure for a first offense and a second offense may result in suspension or loss of professional licensure and up to a $10,000 fine.
2 Effective Date. This act shall take effect 90 days after its passage.
LBAO
12-3071
02/16/12
HB 1725-FN - FISCAL NOTE
AN ACT prohibiting health care practitioner self-referrals for medical devices.
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the Judicial Branch, Association of Counties, and the Department of Justice. When completed, the fiscal note will be forwarded to the House Clerk's Office.