§ 5-48.1-1 - Legislative findings.
SECTION 5-48.1-1
§ 5-48.1-1 Legislative findings. –It is found and declared as follows:
(1) Individuals and corporations sometimes establish jointventures and other business arrangements to offer various diagnostic andtherapeutic health care services and items to patients. While some of thesearrangements assist in providing appropriate but unavailable services and itemsto patients, or help finance nearby facilities as a convenience to patients,others appear to constitute opportunities for investment. These arrangementscan give rise to abuse by creating an environment in which health careproviders could order unnecessary services from those facilities in which theyown an interest. To limit this conduct, Congress of the United States amendedthe Social Security Act (42 U.S.C., § 1320a-7b) to prohibit certainfinancial arrangements. This prohibition is contained in § 1128B(b),of theSocial Security Act, 42 U.S.C. § 1320a-7b.
(2) The provisions of the amendments to the Social SecurityAct, (42 U.S.C., § 1320a-7b), apply only to Medicare/Medicaid reimbursedservices and a void exists with respect to services rendered at the statelevel, which are reimbursed by private payers.
(3) Accordingly, in order to protect the health, safety andwelfare of all residents of this state, it is deemed appropriate to adopt thestandards prescribed in the federal statute as applicable to the delivery ofall health care services and items in this state.