KRS 218A.175: Pain management facilities -- Physician ownership required -- Additional

activities permitted to qualifying facilities -- Certification requirements --

Payment for services rendered or goods provided -- Compliance with section as

additional licensure condition -- Penalty for violation.

(1) (a) As used in this section, "pain management facility" means a facility where the

majority of patients of the practitioners at the facility are provided treatment

for pain that includes the use of controlled substances and:

1. The facility's primary practice component is the treatment of pain; or

2. The facility advertises in any medium for any type of pain management

services.

(b) "Pain management facility" does not include the following:

1. A hospital, includ ing a critical access hospital, as defined in KRS

Chapter 216, a facility owned by the hospital, or the office of a hospital -

employed physician;

2. A school, college, university, or other educational institution or program

to the extent that it provides in struction to individuals preparing to

practice as physicians, podiatrists, dentists, nurses, physician assistants,

optometrists, or veterinarians;

3. A hospice program or residential hospice facility licensed under KRS

Chapter 216B;

4. An ambulatory surgical center licensed under KRS Chapter 216B; or

5. A long-term-care facility as defined in KRS 216.510.

(2) (a) Only a physician having a full and active license to practice medicine issued

under KRS Chapter 311 shall have an ownership or investment interest in a

pain management facility. Credit extended by a financial institution as defined

in KRS 136.500 to the facility shall not be deemed an investment interest

under this subsection. This ownership or investment requirement shall not be

enforced against any pain management facility existing and operating on April

24, 2012, unless there is an administrative sanction or criminal conviction

relating to controlled substances imposed on the facility, any person employed

by the facility, or any person working at the facility as an independent

contractor for an act or omission done within the scope of the facility's

licensure or the person's employment.

(b) A facility qualifying for the exemption permitted by paragraph (a) of this

subsection whose ownership has bee n continuously held jointly and

exclusively by practitioners having full and active licenses to practice in

Kentucky since April 24, 2012, may, after June 24, 2015:

1. Open and operate no more than two (2) additional facilities in locations

other than those locations existing and operating on April 24, 2012;

2. Transfer whole or partial ownership between existing practitioner

owners;

3. Transfer whole or partial ownership interests to new owners if the new

owners are physicians having full and active licenses to practice in

Kentucky and the facility notifies the cabinet of the transfer thirty (30)

days before it occurs; and

4. Pass the ow nership interest of a deceased former owner through that

person's estate to a physician having a full and active license to practice

in Kentucky without disqualifying the facility's grandfathered status

under this subsection if the facility notifies the ca binet of the transfer

thirty (30) days before it occurs in cases where the interest is being

transferred to a physician who is not an existing owner in the facility.

(3) Regardless of the form of facility ownership, beginning on July 20, 2012, at least

one (1) of the owners or an owner's designee who is a physician employed by and

under the supervision of the owner shall be physically present practicing medicine

in the facility for at least fifty percent (50%) of the time that patients are present in

the facility, and that physician owner or designee shall:

(a) Hold a current subspecialty certification in pain management by a member

board of the American Board of Medical Specialties, or hold a current

certificate of added qualification in pain management by the American

Osteopathic Association Bureau of Osteopathic Specialists;

(b) Hold a current subspecialty certification in hospice and palliative medicine by

a member board of the American Board of Medical Specialties, or hold a

current certificate of added qualification in hospice and palliative medicine by

the American Osteopathic Association Bureau of Osteopathic Specialists;

(c) Hold a current board certification by the American Board of Pain Medicine;

(d) Hold a current board certification by the America n Board of Interventional

Pain Physicians;

(e) Have completed a fellowship in pain management or an accredited residency

program that included a rotation of at least five (5) months in pain

management; or

(f) If the facility is operating under a registrati on filed with the Kentucky Board

of Medical Licensure, have completed or hold, or be making reasonable

progress toward completing or holding, a certification or training substantially

equivalent to the certifications or training specified in this subsectio n, as

authorized by the Kentucky Board of Medical Licensure by administrative

regulation.

(4) A pain management facility shall accept private health insurance as one (1) of the

facility's allowable forms of payment for goods or services provided and shall

accept payment for services rendered or goods provided to a patient only from the

patient or the patient's insurer, guarantor, spouse, parent, guardian, or legal

custodian.

(5) If the pain management facility is operating under a license issued by the cabi net,

the cabinet shall include and enforce the provisions of this section as additional

conditions of that licensure. If the pain management facility is operating as the

private office or clinic of a physician under KRS 216B.020(2), the Kentucky Board

of Medical Licensure shall enforce the provisions of this section. The provisions of

this subsection shall not apply to the investigation or enforcement of criminal

liability.

(6) Any person who violates the provisions of this section shall be guilty of a Clas s A

misdemeanor.