Question: Can a spine surgeon legally own interests in an ASC?
Scott Becker: Yes. It is not illegal for a spine surgeon to own interests in ASC. However, a spine surgeon can generally not meet the 1/3 test(s) for medical practice income and thus cannot meet the ASC safe harbor. Further a spine surgeon should not be permitted to invest because he or she generates referrals for pain management physicians. In some states, any indirect referrals are illegal under state law, ie referrals to an ASC where the surgeon doesn’t perform the procedure directly. The failure to meet a safe harbor can create some other problems but it doesn’t mean that an ASC is illegal.
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