Ban on Physician-Owned Hospitals Forces Ownership Transfer of Nebraska Hospital

Physician investors of a hospital under construction in Kearney, Neb., are transferring ownership to of the $20 million facility to MDM, a Kansas-based corporation, citing the ban on new physician-owned hospitals in the healthcare reform law, according to a report by the Kearney Hub.

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Sean Denney, MD, one of the investors, said the physicians will still be involved in operations. “The stake we have is we have partners who will give us a say in the operation,” he said in the report.

MDM currently operates hospitals in Salina and Manhattan, Kan., and imaging centers in Kansas and Oregon.

The Kearney construction project had been racing to complete a Dec. 31 deadline for the ban, but now it will open in April or May.    

Read the Kearney Hub report on physician-owned hospitals.

Read more coverage on physician-owned hospitals:

– Reform Law Stopped Construction on 27 Physician-Owned Hospitals

– New Physician-Owned Nebraska Hospital to Open

– Ohio Physician-Owned Hospital Must Abandon Plans to Add ORs

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