New Jersey Surgical Facilities Boosted by “One Room” Law

The One Room bill (A-4995/S-287) was signed into law on January 12 by Governor Christie and is expected to bring significant activity to the ambulatory surgical facility (ASC) market. The law allows registered “One Rooms” (unlicensed surgical practices) to apply for licensure from the New Jersey Department of Health (NJDoH) within one year of the effective legislation under lax guidelines.

Under this new law, One Rooms are exempt from the burdensome licensing fees, ambulatory assessments and NJDoH’s current “physical plant standards” that are overseen by the New Jersey Board of Medical Examiners.

Conditions for Exemption

  • Surgical practices must obtain a certification from the Centers for Medicare and Medicaid Services (CMS); or
  • Acquire and maintain accreditation from an accrediting body recognized by the CMS

One Room Law Benefits

  • Allows a physician who is not an owner to use the facility.
  • Health systems and ASC management companies can now buy, sell and invest in One Rooms.
  • Allows combinations among registered surgical centers and licensed facilities to expand operations.

This law is good news for surgical facilities, and adds more value to the facility by making it easier to sell or expand while alleviating some of the regulatory burdens. We are sure to see movement in the industry with this new law, and Sax will work to keep you informed and updated as news emerges.

For more information on buying, selling or combinations, or questions on the healthcare industry overall, reach out to Susan Reed, Partner and Head of Sax’s Healthcare Practice at [email protected].