Construction of Nebraska Physician-Owned Hospital Pushes on to Meet Dec. 31 Deadline

Construction crews will have to work “at near-breakneck speeds” to get Kearney (Neb.) Regional Medical Center completed before a ban on physician-owned hospitals under the federal health reform bill goes into effect on Dec. 31, according to a report by Nebraska TV.

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The health reform bill just signed by Pres. Obama actually calls for a deadline of Aug. 1, too tight for the Kearney hospital, but that measure is supposed to be replaced by a reconciliation bill now being debated by the U.S. Senate, allowing the extra five months.

Complicating matters for the hospital, however, is a bill in the Nebraska legislature that would create a moratorium on new physician-owned hospitals.

Sean Denney, MD, chairman of Kearney Regional Medical Center, is trying to take the flurry of legislation in stride.

“Dec. 31 is the time line we’re working with,” he told Nebraska TV, as earth-moving crews were working at the site of the new hospital. “It’d be nice if we can get that accomplished; if not, it’s not the end of the world.”

Dr. Denney said some non-physician investors were prepared to take on ownership if the hospital does not meet the deadline.

“As with every step of this project, it’s been two steps forward, with a watchful eye on where the next big thing is going to hit you along the way,” he said.

Read Nebraska TV’s report on Kearney Regional Medical Center.

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