Language against physician-ownership can be found in Section 1156 of HR 3962, which limits Medicare exceptions to the prohibition on certain physician-referrals made to hospitals. The language included in the section would effectively prohibit the development of any new physician-owned hospitals and limits existing physician-owned hospitals from expanding. Existing physician-owned hospitals may apply for an exception to add ORs or beds if they can establish population increases of “at least 150 percent of the percentage increase in the population growth of the state in which the hospital is located,” according to the bill. The bill also prohibits any the conversion of any existing ASCs into physician-owned hospitals.
HR 3962 also prohibits physicians from increasing the percentage of their ownership in a hospital and expands disclosure and reporting requirements for physicians who invest in hospitals and the hospitals, placing a fine of $10,000 per day on physicians who fail to disclose these investments.
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