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The rule requires a "physician-owned hospital" to furnish written notice at the beginning of a patient's hospital stay or outpatient visit. The notice should disclose that the facility at which the patient is being treated is a physician-owned hospital, and that the list of the hospital's physician-owners is available upon request.

For purposes of the rule, the "stay" begins with the provision of information regarding scheduled pre-admission testing or registration for a planned hospital admission for either inpatient care or outpatient services. Further, physicians must be required by the hospital's medical staff bylaws to disclose ownership to patients at the time physicians make the referrals to the hospital (this may require an update to hospital medical staff bylaws to include this language.

A hospital may be denied the ability to be a Medicare provider if it doesn't have these procedures in place.