H.R. 2860: Restoring Rights of Physicians to Own Hospitals Act

This bill repeals provisions under the Stark law (i.e., the Physician Self-Referral Law) that require rural providers and physician-owned hospitals to meet certain additional criteria in order to be excepted under the Stark law.

Specifically, the bill repeals provisions that require hospitals to meet the following criteria:

• the hospital had physician ownership or investment and a Medicare provider agreement as of December 31, 2010;
• the hospital does not expand the number of operating rooms, procedure rooms, or beds beyond the number in existence as of March 23, 2010, with limited exceptions;
• the hospital discloses certain information regarding physician ownership and investments to patients, the public, and the Centers for Medicare & Medicaid Services;
• the hospital does not offer certain financial opportunities, and the percentage of ownership or investments does not exceed that in effect as of March 23, 2010;
• the hospital discloses certain information to patients relating to the availability of physicians and makes alternative arrangements when necessary; and
• the hospital was not converted from an ambulatory surgical center on or after March 23, 2010.

Written by the Congressional Research Service, Library of Congress.