Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 112 of the General Laws is hereby amended by striking out section 12AA, as appearing in the 1990 Official Edition, and inserting in place thereof the following section:-

Section 12AA. Any person registered or licensed pursuant to this chapter who refers a patient for physical therapy services to any partnership, corporation, firm or other legal entity in which the registered or licensed person has a financial ownership interest shall disclose such interest to the patient and shall inform the patient that such services may be available from other physical therapists in the patient's community.

Each patient who is referred by a registered or licensed person shall be furnished by each registered or licensed person with a written referral which states conspicuously on its face the following:

"The referring registered or licensed person maintains an ownership interest in the facility to which you are being referred for physical therapy service. Physical therapy services may be available elsewhere in the community."

A physician shall also disclose such ownership interest to the board of registration in medicine on a form to be prescribed by such board. Such disclosure shall contain the names and ownership interests of all other parties owning an interest in such physical therapy service.

For the purposes of this section, the term "ownership interest" shall mean any and all ownership interest including, but not limited to, any membership, proprietary interest, stock interest, partnership interest, co-ownership in any form or any profit-sharing arrangement but shall not apply to financial arrangements between a health maintenance organization organized in accordance with chapter one hundred and seventy-six G, or a preferred provider arrangement organized in accordance with chapter one hundred and seventy-six I, and its participating providers, and shall not apply to financial arrangements among participating providers of such health maintenance organization or such preferred provider arrangement.

The board of registration in medicine shall prescribe by regulations that physicians report such ownership interest to the said board.

The board of registration in medicine may prescribe by regulations that physicians report referrals to the said board. Violation of this section shall constitute grounds for disciplinary action by the board of registration in medicine.

SECTION 2. Said chapter 112 is hereby further amended by striking out section 23P>, as so appearing, and inserting in place thereof the following section:-

Section 23P>. Any physical therapist who is involved in the private practice of physical therapy, to whom a patient is referred by a person licensed or registered under this chapter who derives income directly or indirectly from the physical therapy service, shall disclose to the patient that the referring person derives income from the provision of such service, unless such services are provided pursuant to a financial arrangement between a health maintenance organization organized in accordance with chapter one hundred and seventy-six G or a preferred provider arrangement organized in accordance with chapter one hundred and seventy-six I and the participating providers of such health maintenance organization or preferred provider arrangement.

Such ownership interest shall be in writing posted in the office of the person providing such physical therapy in a conspicuous place and shall be of such size and nature so that the average person would take notice of it.

Said posted notice shall contain the names of all persons who maintain an ownership interest.

For the purpose of this section, the term "ownership interest" shall mean any and all ownership interest including, but not limited to, any membership, proprietary interest, stock interest, partnership interest, co-ownership in any form or any profit-sharing arrangement.

The board of allied health professionals shall prescribe by regulation that physical therapists report such ownership interest and referrals to the said board. Violation of this section shall constitute grounds for disciplinary action by the board of allied health professionals.

SECTION 3. Regulations required by sections one and two shall be promulgated within one hundred and eighty days after the effective date of this act.