State senator seeks to close in-office self-referral loophole in California

California state Senator Ed Hernandez has introduced Senate Bill 1215 which, if passed, would close the in-office ancillary services exception to the Stark Law in the state of California for anatomic pathology, advanced imaging, radiation therapy, and physical therapy.

SB-1215 (at least in its current form) would amend section 605.02 as follows:

The prohibition of Section 650.01 shall apply to advanced imaging, anatomic pathology, radiation therapy, or physical therapy for a specific patient that is performed within a licensee’s office or the office of a group practice and that is compensated on a fee-for-service basis. For purposes of this subdivision, “advanced imaging” means magnetic resonance imaging, computed tomography, and positron emission tomography. “Advanced imaging” does not include X-ray, ultrasound, and fluoroscopy and does not include imaging services performed for purposes of radiation therapy treatment planning or in conjunction with an interventional radiological procedure or nuclear medicine other than positron emission tomography.

SB 1215 was re-referred to the Business, Professions, and Economic Development Committee on April 10, 2014, and a hearing on it is scheduled for April 21, 2014.