CHA News Article

New Law Requires Patient Notification About Services in Hospital-Based Outpatient Clinics

A new state law, SB 1365 (Chapter 501, Statutes of 2016), will take effect Jan. 1, 2017, requiring hospitals to notify each patient scheduled for a service in an off-site hospital-based outpatient clinic if that service is available in another location that is not hospital-based. The statute defines a hospital-based outpatient clinic as a department of a provider that is more than 250 yards from the main campus. Though there is no standard form available, the notification should include the contact information of someone within the hospital or health system who the patient can call with questions, as well as a directive for the patient to check with their health insurance company for additional information about other locations that may cost less. This law seeks to expand existing law that prohibits health care facilities from referring a patient to, or soliciting payment from a patient on behalf of, another facility in which it has a significant beneficial interest.

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