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Language limiting physicians' hospital ownership rights is contained in a bill passed by the U.S. House of Representatives that reauthorizes the State Children's Health Insurance Program (CHIP). The bill raises the cigarette tax by 61 cents to fund CHIP reauthorization and expansion.
The measure would provide CHIP coverage to 3.9 million more children and preserve the coverage for 6.7 million children already enrolled in CHIP. The program's authorization expires on March 31, 2009 if not passed.
But the bill, HR 2, also contains these provisions:
- Existing hospitals would not be forced to "buy-down" physician ownership but instead would be able to remain at the percentage of physician ownership they had as of Jan. 1, 2009.
- The majority of existing physician-owned hospitals would not be allowed to grow or expand in any way.
- All hospitals under development that did not have a Medicare certification number by Jan. 1 would not be allowed to continue to take Medicare and Medicaid patients if the physicians who own the hospital continue to refer to that hospital.
American Medical Association President Nancy Nielsen, MD, praised the CHIP action but said AMA "opposes the inclusion of provisions that would place restrictions on physician ownership of hospitals, as these hospitals provide high-quality care and patient satisfaction."
TMA promotes responsible ownership of all health care facilities, whether owned by a physician, hospital, or other provider. Responsible ownership demonstrates a commitment to patient safety as well as adherence to all appropriate regulations and laws, ongoing peer review and quality improvement, and transparency.
The bill now goes to the Senate for its consideration. The Senate was expected to begin deliberations in committee on CHIP on Jan. 15, with the goal of having a vote on the bill before the full Senate next Wednesday or Thursday. The current Senate version of the legislation does not include a prohibition on physician ownership
Contact Sens. John Cornyn and Kay Bailey Hutchison and ask them to oppose the physician ownership provisions of the bill.
Action, Jan. 16, 2009
Last Published: 1/23/2009 Print this page
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