If I'm not mistaken, there's language in the health care bill doing away with physician ownership in facilities, or expansion of existing ones.
Interesting to see what ASIPP does about that one.
I received this email from the PHA (Physicians Hospitals of America) today:
PHA Members and Associates:
As all of you are undoubtedly aware, last night the US House passed healthcare reform legislation on a vote of 219 to 212. Subsequently, the House also passed its package of amendments to that bill through with a 220 to 211 vote to pass the reconciliation bill. It is expected that the President will sign the bill into law tomorrow.
The Senate will begin the process of considering the House reconciliation package Tuesday. Twenty hours of debate on the bill will be allowed, equally divided by Democratic and Republican members. Under the Rules of the Senate, unlimited amendments can be offered during this process. The Republicans are expected to offer numerous amendments. Leader Reid and other high ranking Democratic Senators have ensured the members of the House that the reconciliation package will pass the Senate. Only 51 votes are needed to pass reconciliation in the Senate.
Once the reconciliation package passes the Senate, it too will be signed into law and will officially amend the healthcare reform package just passed by the House. Please keep in mind that should the Senate change the reconciliation package just passed by the House, those changes will go back to the House for further approval and possibly a House/Senate conference.
Impact of Legislation on Physician Hospitals:
As stated above, the base healthcare reform package will be signed into law tomorrow. The bill is the same as that passed by the Senate on December 24th, 2009. The following bullet points detail the impact of this bill:
1. Physician hospitals who have Medicare Certification in place by August 1, 2010 and who meet specific requirements within 18 months of the enactment of the legislation, will be grandfathered.
2. All hospitals in existence on the date of enactment (tomorrow), will be grandfathered.
3. As a grandfathered hospital, the aggregate percentage of your physician ownership cannot be increased after the date of the passage of the bill (tomorrow).
4. Also, as a grandfathered hospital, you would be required to meet 4 specific requirements in order to be allowed to apply to HHS to grow your hospital. If you do not meet these requirements, you cannot add beds, ORs or procedure rooms. According to our latest study, taking into account every physician hospital of which we are aware, no physician owned hospital currently meets each of the 4 requirements. In other words, none of our physician hospitals will be allowed to grow as of the date of the passage of the bill (tomorrow).
5. If you have an existing physician hospital that is currently under construction, it is unclear whether you will be allowed to have new beds, new ORs and new procedure rooms certified upon completion.
6. The impact of the restrictions on growth and change in percentage ownership on those hospitals that anticipate receiving initial Medicare certification by August 1, 2010 are not entirely clear. However, we believe that these hospitals will have until the date of their application for Medicare certification to grow and adjust percentages of physician ownership.
7. Additional requirements must be met in order for existing hospitals to be grandfathered and for hospitals under development that will be completed by August 1, 2010 to be grandfathered. These requirements are not new and require such things as disclosure of ownership, disclosure of physician coverage, ability to meet EMTALA standards, and other financial disclosure requirements that are already in place.
8. Finally, according to the language of the final legislation, if a physician owned hospital does not have its Medicare Provider Number by August 1, 2010, it will not be grandfathered. Whether those hospitals will be able to receive Medicare certification at all is not clear at this time. What is clear is that physician owners will not be allowed to bring Medicare/Medicaid patients to those hospitals.
Obviously, these provisions are extremely harmful
They virtually destroy many of the hospitals that are currently under development, and leave little room for the future growth of the industry. I will provide a more formal analysis of this language shortly. However, because regulations are not expected to be promulgated for at least 18 months, there are certain to be many grey areas in interpreting this language.
You will notice that in the impact analysis above, I did not include the new date of December 31st, 2010 that was included in the House reconciliation package. I also did not include the new provision regarding growth of hospitals that are the highest Medicaid provider in the county
I want to make certain this is clear until the Senate passes the reconciliation package as well, the December 31st date for hospitals under development and new growth provision do not apply. The August 1, 2010 deadline and old growth provisions still apply.