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December 17, 2012 Regulatory Developments

December 19, 2012 | No Comments
Posted by Beth Christian

Here are the most recent health care related regulatory developments as published in the New Jersey Register on December 17, 2012:

  • On December 17, 2012 at 44 N.J.R. 3019, the Department of Banking and Insurance published notice of its adoption of amendments to its regulations governing company action level events in connection with capital and surplus requirements for insurers and health maintenance organizations.
  • On December 17, 2012 at 44 N.J.R. 3075, the State Board of Pharmacy published notice of its administrative correction of the regulations governing procedures for centralized prescription handling and out-of-state pharmacy registration.
  • On December 17, 2012 at 44 N.J.R. 3087, the State Board of Medical Examiners published notice of its action on a Petition for Rulemaking filed by the New Jersey Hospital Association.  The Petition for Rulemaking requests that the Board amend N.J.A.C. 13:35-6.16(f) to permit licensed physicians to be employees of a corporation which is a wholly controlled subsidiary of a licensed hospital.  Under the proposal, the licensed hospital would monitor the activities of the subsidiary corporation through a quality assessment and performance improvement program and make the structure of this program available to the Board for review upon request.  The hospital would not exercise control over employee-physicians’ independent medical judgment.  Finally, the subsidiary corporation would have, as part of its governance structure, a committee comprised solely of licensed physicians who have sole responsibility for all corporate decision making involving the exercise of independent medical judgment.  Under the proposal, licensed physicians would be permitted to provide input to the governing body of the corporation with regard to operational matters that are not solely clinical.

The Board announced that it was referring the matter for further deliberations by a committee in order to develop a better understanding as to the nature of the petitioner’s request and the implications the request would have for physicians and patients within the structures of the corporate practice that the petition envisions.  The notice also indicated that the Board will also deliberate as to the implications that the petitioner’s request could have on other structures for the corporate practice of medicine.  The Board will invite the petitioner to discuss the petition and its possible implications with a committee of the Board.


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