Physician-owned hospitals are presently not subject to the Stark law, which generally prohibits physicians from referring patients to a facility in which they have a financial interest. But a provision in the SCHIP bill that was penned with the help of Rep. Pete Stark, chairman of the House Ways and Means health subcommittee, essentially seeks to stop construction and expansion of physician-owned hospitals.
The SCHIP bill, with these physician-owned hospital restrictions, was passed by the House. Even though the Senate version of the bill does not include these restrictions (this bill is expected to receive approval by the Senate next week) a final bill with the restrictions included will eventually go to Pres. Barack Obama.
The article includes comments from Brett Gosney, president of Physician Hospitals of America and the CEO of Animas Surgical Hospital in Durango, Col., defending the benefits and value of physician-owned hospitals.
