tci Medicare Compliance & Reimbursement - 2003 Issue 26

Specialty Hospitals: CMS CAN'T, CONGRESS MIGHT CAN WHOLE-HOSPITAL EXEMPTION

The rise of specialty hospitals funded mainly by physician investors is a recent phenomenon that many believe increases questionable service utilization and threatens the viability of full-service hospitals. Both Congress and the Centers for Medicare & Medicaid Services have been mulling imminent moves against the boom. However, CMS has determined it doesn't have the authority to act, and the outcome of congressional action is unclear. Physician incomes are stagnating and the economy is slow. So it's no surprise that doctors are making use of the so-called whole-hospital exemption in federal physician self-referral laws to get involved in specialty facilities...

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