In the proposed rule, CMS outlines that physician-owned hospitals must meet all proposed rule changes by September 23, 2011, unless the requirement has another, explicit deadline either before or after Sept. 23. For example, projects under development have until December 31, 2010 to obtain a provider agreement, and that deadline will not be extended. However, other requirements, such as disclosure of ownership to patients, will not have to be met until September 23, 2011, according to the PHA.
Here are other changes outlined in the proposed rule affecting physician-owned hospitals:
- Percentage of physician ownership. All hospitals, whether under development or in existence, are limited to the aggregate percentage of physician ownership they had as of March 23, 2010. PHA had asked that CMS allow projects to change the percent of physician ownership up until the date they received their provider agreement; however, this was not incorporated into the rule.
- Limitations on expansion. The limitation on expansion of facility capacity applies to operating rooms, procedure rooms and beds for which the hospital is licensed. CMS interprets that limitation to apply whether or not a state licenses operating and procedure rooms. Currently, CMS defines procedure rooms as rooms where catheterizations, angiographies, angiograms and endoscopies are performed. However, CMS is inviting comment to adopt a “broader” interpretation of procedure room, according to the PHA.
- Disclosure requirements. CMS proposes that hospitals require physician investors, as a condition of privileges, to provide written disclosure of ownership to patients. CMS further suggests that patients could be provided a written, form notice that discloses the physician’s ownership, the ownership of the treating physician (if different from the referring physician owner) and lists the other physician investors.
Comments on the proposed rule are due by August 31, 2010.
View the proposed rule (pdf).
