Extended Deadline for Ban on Physician Hospitals Part of Last-Minute Amendments to Senate Bill

An extension on the deadline from Feb. 1, 2010, to Aug. 1, 2010, for a proposed ban on physician-owned hospitals was included in "Manager's Amendment" to the Senate health reform bill just before it went to a vote, according to a copy of the 383-page Manager's Amendment.

The change, on page 332 of the document, is not the absolute last time that the provision could be altered, the Physician Hospital Association said in an e-mail message to members.

The bill was passed by the Senate in the first of three procedural votes and if it is accepted in the last procedural vote on Christmas Eve, as expected, PHA lobbyists would then try to alter the language when Senate and House leaders try to reconcile the Senate and House reform bills in a joint conference committee that could last into February.

The House version, however, is even more onerous than the Senate version because it would retroactively extend the deadline on new physician-owned hospitals back to Jan. 1, 2009.

PHA officials had been hoping to convince Senate Democrats to postpone the deadline until Jan. 1, 2014, and to soften both bills' ban on any additions for existing physician-owned hospitals, such as more of ORs, beds and other functions. The latter proposal, however, was not addressed in the Manager's Amendment.

The 125 physician-owned hospitals in planning stages would have to hurry even to meet an Aug. 1, 2010, deadline on new physician-owned hospitals because projects have to be up and running and have a Medicare certification number by that date.

Read the Manager's Amendments to the Senate health reform bill.

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