tci Medicare Compliance & Reimbursement - 2003 Issue 21

Physicians: SPECIALTY HOSPITALS FEEL THE HEAT

The compliance ground rules for physician-owned specialty hospitals could be in for a major shakeup. Last month, physician self-referral law architect Rep. Pete Stark (D-CA) and Rep. Jerry Kleczka (D-WI) introduced legislation that would put restrictions on physician referrals to specialty hospitals in which they have an ownership interest. Stark and Kleczka worry that such "boutique" hospitals, which typically specialize in generously reimbursed niche markets like cardiac care and orthopedic surgery, suck away profitable patients from cash-strapped general community hospitals who are left holding the bag with sicker, high-cost patients. Now the General Accounting Office has weighed in with...

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