California's Sutter Medical Center Drops Plans for Physician-Owned Facility, Cites Health Reform

Tags: California | healthcare reform | physician ownership | renovations | Sutter Medical Center

Sutter Medical Center of Santa Rosa (Calif.) has dropped plans for a physician-owned medical center, planned as part of its 70-bed expansion project, because it would not meet the new requirements for physician-ownership put in place by the healthcare reform bill by its Dec. 31 deadline, according to a report in the North Bay Business Journal.

According to the new law, physician-owned hospitals must have physician-owners and investors and a Medicare provider agreement in place by Dec. 31 to meet the Stark Exemption. Sutter does not expect to break ground on the new facility until mid-September or early-October of 2010, according to the report.

Sutter officials say the new healthcare reform bill prohibits the physician-ownership model that was in place. The 70-bed expansion will continue once the Sonoma County Department of Health and Human Services approves Sutter's plans, according to the report.

Read the Business Journal's report on Sutter's dropped physician-ownership plans.

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