December 01, 2017

Lifting the Ban on Physician-Owned Hospitals: Problems, Alternatives, Solutions

Jess Bailey and Anton Stewart, Bailey Law Firm, PLLC The Woodlands, TX

Earlier this year, the Centers for Medicare & Medicaid Services (CMS) invited comments on the role of physician-owned hospitals (POHs) in the American healthcare system.1 Some have cautiously interpreted this solicitation as a hint at a potential removal or at least a relaxation of the effective ban on the participation of new POHs in Medicare as well as of the prohibition on the expansion of existing Medicare-participating POHs.2 Others view the comment request as an invitation to join a national conversation on POHs.3 CMS has not yet issued a ruling or other response to this invitation to comment; however, with more than 250 POHs on the line,4 any changes to the current rules on hospital ownership are going to have long-ranging and lasting consequences. 

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