42 USC 1395nn - Limitation on certain physician referrals

U.S Code last checked for updates: Nov 22, 2024

§ 1395nn.

Limitation on certain physician referrals

(a)

Prohibition of certain referrals

(1)

In general

Except as provided in subsection (b), if a physician (or an immediate family member of such physician) has a financial relationship with an entity specified in paragraph (2), then—

(A)

the physician may not make a referral to the entity for the furnishing of designated health services for which payment otherwise may be made under this subchapter, and

(B)

the entity may not present or cause to be presented a claim under this subchapter or bill to any individual, third party payor, or other entity for designated health services furnished pursuant to a referral prohibited under subparagraph (A).

(2)

Financial relationship specified

For purposes of this section, a financial relationship of a physician (or an immediate family member of such physician) with an entity specified in this paragraph is—

(A)

except as provided in subsections (c) and (d), an ownership or investment interest in the entity, or

(B)

except as provided in subsection (e), a compensation arrangement (as defined in subsection (h)(1)) between the physician (or an immediate family member of such physician) and the entity.

An ownership or investment interest described in subparagraph (A) may be through equity, debt, or other means and includes an interest in an entity that holds an ownership or investment interest in any entity providing the designated health service.

(b)

General exceptions to both ownership and compensation arrangement prohibitions

Subsection (a)(1) shall not apply in the following cases:

(1)

Physicians’ services

(2)

In-office ancillary services

In the case of services (other than durable medical equipment (excluding infusion pumps) and parenteral and enteral nutrients, equipment, and supplies)—

(A)

that are furnished—

(i)

personally by the referring physician, personally by a physician who is a member of the same group practice as the referring physician, or personally by individuals who are directly supervised by the physician or by another physician in the group practice, and

(ii)

(I)

in a building in which the referring physician (or another physician who is a member of the same group practice) furnishes physicians’ services unrelated to the furnishing of designated health services, or

(II)

in the case of a referring physician who is a member of a group practice, in another building which is used by the group practice—

(aa)

for the provision of some or all of the group’s clinical laboratory services, or

(bb)

for the centralized provision of the group’s designated health services (other than clinical laboratory services),

unless the Secretary determines other terms and conditions under which the provision of such services does not present a risk of program or patient abuse, and

(B)

that are billed by the physician performing or supervising the services, by a group practice of which such physician is a member under a billing number assigned to the group practice, or by an entity that is wholly owned by such physician or such group practice,

if the ownership or investment interest in such services meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse. Such requirements shall, with respect to magnetic resonance imaging, computed tomography, positron emission tomography, and any other designated health services specified under subsection (h)(6)(D) that the Secretary determines appropriate, include a requirement that the referring physician inform the individual in writing at the time of the referral that the individual may obtain the services for which the individual is being referred from a person other than a person described in subparagraph (A)(i) and provide such individual with a written list of suppliers (as defined in section 1395x(d) of this title) who furnish such services in the area in which such individual resides.

(3)

Prepaid plans

In the case of services furnished by an organization—

(A)

with a contract under section 1395mm of this title to an individual enrolled with the organization,

(B)

described in section 1395l(a)(1)(A) of this title to an individual enrolled with the organization,

(C)

receiving payments on a prepaid basis, under a demonstration project under section 1395b–1(a) of this title or under section 222(a) of the Social Security Amendments of 1972, to an individual enrolled with the organization,

(D)

that is a qualified health maintenance organization (within the meaning of section 300e–9(d) 1

 See References in Text note below.

of this title) to an individual enrolled with the organization, or

(E)

that is a Medicare+Choice organization under part C that is offering a coordinated care plan described in section 1395w–21(a)(2)(A) of this title to an individual enrolled with the organization.

(4)

Other permissible exceptions

(5)

Electronic prescribing

(c)

General exception related only to ownership or investment prohibition for ownership in publicly traded securities and mutual funds

Ownership of the following shall not be considered to be an ownership or investment interest described in subsection (a)(2)(A):

(1)

Ownership of investment securities (including shares or bonds, debentures, notes, or other debt instruments) which may be purchased on terms generally available to the public and which are—

(A)

(i)

securities listed on the New York Stock Exchange, the American Stock Exchange, or any regional exchange in which quotations are published on a daily basis, or foreign securities listed on a recognized foreign, national, or regional exchange in which quotations are published on a daily basis, or

(ii)

traded under an automated interdealer quotation system operated by the National Association of Securities Dealers, and

(B)

in a corporation that had, at the end of the corporation’s most recent fiscal year, or on average during the previous 3 fiscal years, stockholder equity exceeding $75,000,000.

(2)

Ownership of shares in a regulated investment company as defined in section 851(a) of the Internal Revenue Code of 1986, if such company had, at the end of the company’s most recent fiscal year, or on average during the previous 3 fiscal years, total assets exceeding $75,000,000.

(d)

Additional exceptions related only to ownership or investment prohibition

The following, if not otherwise excepted under subsection (b), shall not be considered to be an ownership or investment interest described in subsection (a)(2)(A):

(1)

Hospitals in Puerto Rico

(2)

Rural providers

In the case of designated health services furnished in a rural area (as defined in section 1395ww(d)(2)(D) of this title) by an entity, if—

(A)

substantially all of the designated health services furnished by the entity are furnished to individuals residing in such a rural area;

(B)

effective for the 18-month period beginning on December 8, 2003, the entity is not a specialty hospital (as defined in subsection (h)(7)); and

(C)

in the case where the entity is a hospital, the hospital meets the requirements of paragraph (3)(D).

(3)

Hospital ownership

In the case of designated health services provided by a hospital (other than a hospital described in paragraph (1)) if—

(A)

the referring physician is authorized to perform services at the hospital;

(B)

effective for the 18-month period beginning on December 8, 2003, the hospital is not a specialty hospital (as defined in subsection (h)(7));

(C)

the ownership or investment interest is in the hospital itself (and not merely in a subdivision of the hospital); and

(D)

the hospital meets the requirements described in subsection (i)(1) not later than 18 months after March 23, 2010.

(e)

Exceptions relating to other compensation arrangements

The following shall not be considered to be a compensation arrangement described in subsection (a)(2)(B):

(1)

Rental of office space; rental of equipment

(A)

Office space

Payments made by a lessee to a lessor for the use of premises if—

(i)

the lease is set out in writing, signed by the parties, and specifies the premises covered by the lease,

(ii)

the space rented or leased does not exceed that which is reasonable and necessary for the legitimate business purposes of the lease or rental and is used exclusively by the lessee when being used by the lessee, except that the lessee may make payments for the use of space consisting of common areas if such payments do not exceed the lessee’s pro rata share of expenses for such space based upon the ratio of the space used exclusively by the lessee to the total amount of space (other than common areas) occupied by all persons using such common areas,

(iii)

the lease provides for a term of rental or lease for at least 1 year,

(iv)

the rental charges over the term of the lease are set in advance, are consistent with fair market value, and are not determined in a manner that takes into account the volume or value of any referrals or other business generated between the parties,

(v)

the lease would be commercially reasonable even if no referrals were made between the parties, and

(vi)

the lease meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(B)

Equipment

Payments made by a lessee of equipment to the lessor of the equipment for the use of the equipment if—

(i)

the lease is set out in writing, signed by the parties, and specifies the equipment covered by the lease,

(ii)

the equipment rented or leased does not exceed that which is reasonable and necessary for the legitimate business purposes of the lease or rental and is used exclusively by the lessee when being used by the lessee,

(iii)

the lease provides for a term of rental or lease of at least 1 year,

(iv)

(v)

the lease would be commercially reasonable even if no referrals were made between the parties, and

(vi)

the lease meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(C)

Holdover lease arrangements

In the case of a holdover lease arrangement for the lease of office space or equipment, which immediately follows a lease arrangement described in subparagraph (A) for the use of such office space or subparagraph (B) for the use of such equipment and that expired after a term of at least 1 year, payments made by the lessee to the lessor pursuant to such holdover lease arrangement, if—

(i)

the lease arrangement met the conditions of subparagraph (A) for the lease of office space or subparagraph (B) for the use of equipment when the arrangement expired;

(ii)

the holdover lease arrangement is on the same terms and conditions as the immediately preceding arrangement; and

(iii)

the holdover arrangement continues to satisfy the conditions of subparagraph (A) for the lease of office space or subparagraph (B) for the use of equipment.

(2)

Bona fide employment relationships

Any amount paid by an employer to a physician (or an immediate family member of such physician) who has a bona fide employment relationship with the employer for the provision of services if—

(A)

the employment is for identifiable services,

(B)

the amount of the remuneration under the employment—

(i)

is consistent with the fair market value of the services, and

(ii)

is not determined in a manner that takes into account (directly or indirectly) the volume or value of any referrals by the referring physician,

(C)

the remuneration is provided pursuant to an agreement which would be commercially reasonable even if no referrals were made to the employer, and

(D)

the employment meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

Subparagraph (B)(ii) shall not prohibit the payment of remuneration in the form of a productivity bonus based on services performed personally by the physician (or an immediate family member of such physician).

(3)

Personal service arrangements

(A)

In general

Remuneration from an entity under an arrangement (including remuneration for specific physicians’ services furnished to a nonprofit blood center) if—

(i)

the arrangement is set out in writing, signed by the parties, and specifies the services covered by the arrangement,

(ii)

the arrangement covers all of the services to be provided by the physician (or an immediate family member of such physician) to the entity,

(iii)

the aggregate services contracted for do not exceed those that are reasonable and necessary for the legitimate business purposes of the arrangement,

(iv)

the term of the arrangement is for at least 1 year,

(v)

the compensation to be paid over the term of the arrangement is set in advance, does not exceed fair market value, and except in the case of a physician incentive plan described in subparagraph (B), is not determined in a manner that takes into account the volume or value of any referrals or other business generated between the parties,

(vi)

the services to be performed under the arrangement do not involve the counseling or promotion or a business arrangement or other activity that violates any State or Federal law, and

(vii)

the arrangement meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(B)

Physician incentive plan exception

(i)

In general

In the case of a physician incentive plan (as defined in clause (ii)) between a physician and an entity, the compensation may be determined in a manner (through a withhold, capitation, bonus, or otherwise) that takes into account directly or indirectly the volume or value of any referrals or other business generated between the parties, if the plan meets the following requirements:

(I)

No specific payment is made directly or indirectly under the plan to a physician or a physician group as an inducement to reduce or limit medically necessary services provided with respect to a specific individual enrolled with the entity.

(II)

In the case of a plan that places a physician or a physician group at substantial financial risk as determined by the Secretary pursuant to section 1395mm(i)(8)(A)(ii) of this title, the plan complies with any requirements the Secretary may impose pursuant to such section.

(III)

Upon request by the Secretary, the entity provides the Secretary with access to descriptive information regarding the plan, in order to permit the Secretary to determine whether the plan is in compliance with the requirements of this clause.

(ii)

“Physician incentive plan” defined

(C)

Holdover personal service arrangement

In the case of a holdover personal service arrangement, which immediately follows an arrangement described in subparagraph (A) that expired after a term of at least 1 year, remuneration from an entity pursuant to such holdover personal service arrangement, if—

(i)

the personal service arrangement met the conditions of subparagraph (A) when the arrangement expired;

(ii)

the holdover personal service arrangement is on the same terms and conditions as the immediately preceding arrangement; and

(iii)

the holdover arrangement continues to satisfy the conditions of subparagraph (A).

(4)

Remuneration unrelated to the provision of designated health services

(5)

Physician recruitment

In the case of remuneration which is provided by a hospital to a physician to induce the physician to relocate to the geographic area served by the hospital in order to be a member of the medical staff of the hospital, if—

(A)

the physician is not required to refer patients to the hospital,

(B)

the amount of the remuneration under the arrangement is not determined in a manner that takes into account (directly or indirectly) the volume or value of any referrals by the referring physician, and

(C)

the arrangement meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(6)

Isolated transactions

In the case of an isolated financial transaction, such as a one-time sale of property or practice, if—

(A)

the requirements described in subparagraphs (B) and (C) of paragraph (2) are met with respect to the entity in the same manner as they apply to an employer, and

(B)

the transaction meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(7)

Certain group practice arrangements with a hospital

(A)

 So in original. No subpar. (B) has been enacted.

In general

An arrangement between a hospital and a group under which designated health services are provided by the group but are billed by the hospital if—

(i)

with respect to services provided to an inpatient of the hospital, the arrangement is pursuant to the provision of inpatient hospital services under section 1395x(b)(3) of this title,

(ii)

the arrangement began before December 19, 1989, and has continued in effect without interruption since such date,

(iii)

with respect to the designated health services covered under the arrangement, substantially all of such services furnished to patients of the hospital are furnished by the group under the arrangement,

(iv)

the arrangement is pursuant to an agreement that is set out in writing and that specifies the services to be provided by the parties and the compensation for services provided under the agreement,

(v)

the compensation paid over the term of the agreement is consistent with fair market value and the compensation per unit of services is fixed in advance and is not determined in a manner that takes into account the volume or value of any referrals or other business generated between the parties,

(vi)

the compensation is provided pursuant to an agreement which would be commercially reasonable even if no referrals were made to the entity, and

(vii)

the arrangement between the parties meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(8)

Payments by a physician for items and services

Payments made by a physician—

(A)

to a laboratory in exchange for the provision of clinical laboratory services, or

(B)

to an entity as compensation for other items or services if the items or services are furnished at a price that is consistent with fair market value.

(9)

Physician wellness programs

A bona fide mental health or behavioral health improvement or maintenance program offered to a physician by an entity, if—

(A)

such program—

(i)

consists of counseling, mental health services, a suicide prevention program, or a substance use disorder prevention and treatment program;

(ii)

is made available to a physician for the primary purpose of preventing suicide, improving mental health and resiliency, or providing training in appropriate strategies to promote the mental health and resiliency of such physician;

(iii)

is set out in a written policy, approved in advance of the operation of the program by the governing body of the entity providing such program (and which shall be updated accordingly in advance to substantial changes to the operation of such program), that includes—

(I)

a description of the content and duration of the program;

(II)

a description of the evidence-based support for the design of the program;

(III)

the estimated cost of the program;

(IV)

the personnel (including the qualifications of such personnel) conducting the program; and

(V)

the method by which such entity will evaluate the use and success of the program;

(iv)

is offered by an entity described in subparagraph (B) with a formal medical staff to all physicians who practice in the geographic area served by such entity, including physicians who hold bona fide appointments to the medical staff of such entity or otherwise have clinical privileges at such entity;

(v)

is offered to all such physicians on the same terms and conditions and without regard to the volume or value of referrals or other business generated by a physician for such entity;

(vi)

is evidence-based and conducted by a qualified health professional; and

(vii)

meets such other requirements the Secretary may impose by regulation as needed to protect against program or patient abuse;

(B)

such entity is—

(i)

a hospital;

(ii)

an ambulatory surgical center;

(iii)

a community health center;

(iv)

a rural emergency hospital;

(v)

a rural health clinic;

(vi)

a skilled nursing facility; or

(vii)

a similar entity, as determined by the Secretary; and

(C)

neither the provision of such program, nor the value of such program, are contingent upon the number or value of referrals made by a physician to such entity or the amount or value of other business generated by such physician for the entity.

(f)

Reporting requirements

Each entity providing covered items or services for which payment may be made under this subchapter shall provide the Secretary with the information concerning the entity’s ownership, investment, and compensation arrangements, including—

(1)

the covered items and services provided by the entity, and

(2)

the names and unique physician identification numbers of all physicians with an ownership or investment interest (as described in subsection (a)(2)(A)), or with a compensation arrangement (as described in subsection (a)(2)(B)), in the entity, or whose immediate relatives have such an ownership or investment interest or who have such a compensation relationship with the entity.

Such information shall be provided in such form, manner, and at such times as the Secretary shall specify. The requirement of this subsection shall not apply to designated health services provided outside the United States or to entities which the Secretary determines provides 3

 So in original. Probably should be “provide”.

services for which payment may be made under this subchapter very infrequently.

(g)

Sanctions

(1)

Denial of payment

(2)

Requiring refunds for certain claims

(3)

Civil money penalty and exclusion for improper claims

(4)

Civil money penalty and exclusion for circumvention schemes

(5)

Failure to report information

(6)

Advisory opinions

(A)

In general

(B)

Application of certain rules

(C)

Regulations

(D)

Applicability

(h)

Definitions and special rules

For purposes of this section:

(1)

Compensation arrangement; remuneration

(A)

The term “compensation arrangement” means any arrangement involving any remuneration between a physician (or an immediate family member of such physician) and an entity other than an arrangement involving only remuneration described in subparagraph (C).

(B)

The term “remuneration” includes any remuneration, directly or indirectly, overtly or covertly, in cash or in kind.

(C)

Remuneration described in this subparagraph is any remuneration consisting of any of the following:

(i)

The forgiveness of amounts owed for inaccurate tests or procedures, mistakenly performed tests or procedures, or the correction of minor billing errors.

(ii)

The provision of items, devices, or supplies that are used solely to—

(I)

collect, transport, process, or store specimens for the entity providing the item, device, or supply, or

(II)

order or communicate the results of tests or procedures for such entity.

(iii)

A payment made by an insurer or a self-insured plan to a physician to satisfy a claim, submitted on a fee for service basis, for the furnishing of health services by that physician to an individual who is covered by a policy with the insurer or by the self-insured plan, if—

(I)

the health services are not furnished, and the payment is not made, pursuant to a contract or other arrangement between the insurer or the plan and the physician,

(II)

the payment is made to the physician on behalf of the covered individual and would otherwise be made directly to such individual,

(III)

the amount of the payment is set in advance, does not exceed fair market value, and is not determined in a manner that takes into account directly or indirectly the volume or value of any referrals, and

(IV)

the payment meets such other requirements as the Secretary may impose by regulation as needed to protect against program or patient abuse.

(D)

Written requirement clarified.—

In the case of any requirement pursuant to this section for a compensation arrangement to be in writing, such requirement shall be satisfied by such means as determined by the Secretary, including by a collection of documents, including contemporaneous documents evidencing the course of conduct between the parties involved.

(E)

Special rule for signature requirements.—

In the case of any requirement pursuant to this section for a compensation arrangement to be in writing and signed by the parties, such signature requirement shall be met if—

(i)

not later than 90 consecutive calendar days immediately following the date on which the compensation arrangement became noncompliant, the parties obtain the required signatures; and

(ii)

the compensation arrangement otherwise complies with all criteria of the applicable exception.

(2)

Employee

(3)

Fair market value

(4)

Group practice

(A)

Definition of group practice

The term “group practice” means a group of 2 or more physicians legally organized as a partnership, professional corporation, foundation, not-for-profit corporation, faculty practice plan, or similar association—

(i)

in which each physician who is a member of the group provides substantially the full range of services which the physician routinely provides, including medical care, consultation, diagnosis, or treatment, through the joint use of shared office space, facilities, equipment and personnel,

(ii)

for which substantially all of the services of the physicians who are members of the group are provided through the group and are billed under a billing number assigned to the group and amounts so received are treated as receipts of the group,

(iii)

in which the overhead expenses of and the income from the practice are distributed in accordance with methods previously determined,

(iv)

except as provided in subparagraph (B)(i), in which no physician who is a member of the group directly or indirectly receives compensation based on the volume or value of referrals by the physician,

(v)

in which members of the group personally conduct no less than 75 percent of the physician-patient encounters of the group practice, and

(vi)

which meets such other standards as the Secretary may impose by regulation.

(B)

Special rules

(i)

Profits and productivity bonuses

(ii)

Faculty practice plans

(5)

Referral; referring physician

(A)

Physicians’ services

(B)

Other items

(C)

Clarification respecting certain services integral to a consultation by certain specialists

(6)

Designated health services

The term “designated health services” means any of the following items or services:

(A)

Clinical laboratory services.

(B)

Physical therapy services.

(C)

Occupational therapy services.

(D)

Radiology services, including magnetic resonance imaging, computerized axial tomography scans, and ultrasound services.

(E)

Radiation therapy services and supplies.

(F)

Durable medical equipment and supplies.

(G)

Parenteral and enteral nutrients, equipment, and supplies.

(H)

Prosthetics, orthotics, and prosthetic devices and supplies.

(I)

Home health services.

(J)

Outpatient prescription drugs.

(K)

Inpatient and outpatient hospital services.

(L)

Outpatient speech-language pathology services.

(7)

Specialty hospital

(A)

In general

For purposes of this section, except as provided in subparagraph (B), the term “specialty hospital” means a subsection (d) hospital (as defined in section 1395ww(d)(1)(B) of this title) that is primarily or exclusively engaged in the care and treatment of one of the following categories:

(i)

Patients with a cardiac condition.

(ii)

Patients with an orthopedic condition.

(iii)

Patients receiving a surgical procedure.

(iv)

Any other specialized category of services that the Secretary designates as inconsistent with the purpose of permitting physician ownership and investment interests in a hospital under this section.

(B)

Exception

For purposes of this section, the term “specialty hospital” does not include any hospital—

(i)

determined by the Secretary—

(I)

to be in operation before November 18, 2003; or

(II)

under development as of such date;

(ii)

for which the number of physician investors at any time on or after such date is no greater than the number of such investors as of such date;

(iii)

for which the type of categories described in subparagraph (A) at any time on or after such date is no different than the type of such categories as of such date;

(iv)

for which any increase in the number of beds occurs only in the facilities on the main campus of the hospital and does not exceed 50 percent of the number of beds in the hospital as of November 18, 2003, or 5 beds, whichever is greater; and

(v)

that meets such other requirements as the Secretary may specify.

(i)

Requirements for hospitals to qualify for rural provider and hospital exception to ownership or investment prohibition

(1)

Requirements described

For purposes of subsection (d)(3)(D), the requirements described in this paragraph for a hospital are as follows:

(A)

Provider agreement

The hospital had—

(i)

physician ownership or investment on December 31, 2010; and

(ii)

a provider agreement under section 1395cc of this title in effect on such date.

(B)

Limitation on expansion of facility capacity

(C)

Preventing conflicts of interest

(i)

The hospital submits to the Secretary an annual report containing a detailed description of—

(I)

the identity of each physician owner or investor and any other owners or investors of the hospital; and

(II)

the nature and extent of all ownership and investment interests in the hospital.

(ii)

The hospital has procedures in place to require that any referring physician owner or investor discloses to the patient being referred, by a time that permits the patient to make a meaningful decision regarding the receipt of care, as determined by the Secretary—

(I)

the ownership or investment interest, as applicable, of such referring physician in the hospital; and

(II)

if applicable, any such ownership or investment interest of the treating physician.

(iii)

The hospital does not condition any physician ownership or investment interests either directly or indirectly on the physician owner or investor making or influencing referrals to the hospital or otherwise generating business for the hospital.

(iv)

The hospital discloses the fact that the hospital is partially owned or invested in by physicians—

(I)

on any public website for the hospital; and

(II)

in any public advertising for the hospital.

(D)

Ensuring bona fide investment

(i)

The percentage of the total value of the ownership or investment interests held in the hospital, or in an entity whose assets include the hospital, by physician owners or investors in the aggregate does not exceed such percentage as of March 23, 2010.

(ii)

Any ownership or investment interests that the hospital offers to a physician owner or investor are not offered on more favorable terms than the terms offered to a person who is not a physician owner or investor.

(iii)

The hospital (or any owner or investor in the hospital) does not directly or indirectly provide loans or financing for any investment in the hospital by a physician owner or investor.

(iv)

The hospital (or any owner or investor in the hospital) does not directly or indirectly guarantee a loan, make a payment toward a loan, or otherwise subsidize a loan, for any individual physician owner or investor or group of physician owners or investors that is related to acquiring any ownership or investment interest in the hospital.

(v)

Ownership or investment returns are distributed to each owner or investor in the hospital in an amount that is directly proportional to the ownership or investment interest of such owner or investor in the hospital.

(vi)

Physician owners and investors do not receive, directly or indirectly, any guaranteed receipt of or right to purchase other business interests related to the hospital, including the purchase or lease of any property under the control of other owners or investors in the hospital or located near the premises of the hospital.

(vii)

The hospital does not offer a physician owner or investor the opportunity to purchase or lease any property under the control of the hospital or any other owner or investor in the hospital on more favorable terms than the terms offered to an individual who is not a physician owner or investor.

(E)

Patient safety

(i)

Insofar as the hospital admits a patient and does not have any physician available on the premises to provide services during all hours in which the hospital is providing services to such patient, before admitting the patient—

(I)

the hospital discloses such fact to a patient; and

(II)

following such disclosure, the hospital receives from the patient a signed acknowledgment that the patient understands such fact.

(ii)

The hospital has the capacity to—

(I)

provide assessment and initial treatment for patients; and

(II)

refer and transfer patients to hospitals with the capability to treat the needs of the patient involved.

(F)

Limitation on application to certain converted facilities

(2)

Publication of information reported

(3)

Exception to prohibition on expansion of facility capacity

(A)

Process

(i)

Establishment

(ii)

Opportunity for community input

(iii)

Timing for implementation

(iv)

Regulations

(B)

Frequency

(C)

Permitted increase

(i)

In general

(ii)

100 percent increase limitation

(iii)

Baseline number of operating rooms, procedure rooms, and beds

(D)

Increase limited to facilities on the main campus of the hospital

(E)

Applicable hospital

In this paragraph, the term “applicable hospital” means a hospital—

(i)

that is located in a county in which the percentage increase in the population during the most recent 5-year period (as of the date of the application under subparagraph (A)) is at least 150 percent of the percentage increase in the population growth of the State in which the hospital is located during that period, as estimated by Bureau of the Census;

(ii)

whose annual percent of total inpatient admissions that represent inpatient admissions under the program under subchapter XIX is equal to or greater than the average percent with respect to such admissions for all hospitals located in the county in which the hospital is located;

(iii)

that does not discriminate against beneficiaries of Federal health care programs and does not permit physicians practicing at the hospital to discriminate against such beneficiaries;

(iv)

that is located in a State in which the average bed capacity in the State is less than the national average bed capacity; and

(v)

that has an average bed occupancy rate that is greater than the average bed occupancy rate in the State in which the hospital is located.

(F)

High Medicaid facility described

A high Medicaid facility described in this subparagraph is a hospital that—

(i)

is not the sole hospital in a county;

(ii)

with respect to each of the 3 most recent years for which data are available, has an annual percent of total inpatient admissions that represent inpatient admissions under subchapter XIX that is estimated to be greater than such percent with respect to such admissions for any other hospital located in the county in which the hospital is located; and

(iii)

meets the conditions described in subparagraph (E)(iii).

(G)

Procedure rooms

(H)

Publication of final decisions

(I)

Limitation on review

(4)

Collection of ownership and investment information

(5)

Physician owner or investor defined

(6)

Clarification

(Aug. 14, 1935, ch. 531, title XVIII, § 1877, as added Pub. L. 101–239, title VI, § 6204(a), Dec. 19, 1989, 103 Stat. 2236; amended Pub. L. 101–508, title IV, § 4207(e)(1)–(3), (k)(2), formerly § 4027(e)(1)–(3), (k)(2), Nov. 5, 1990, 104 Stat. 1388–121, 1388–122, 1388–124, renumbered Pub. L. 103–432, title I, § 160(d)(4), Oct. 31, 1994, 108 Stat. 4444; Pub. L. 103–66, title XIII, § 13562(a), Aug. 10, 1993, 107 Stat. 596; Pub. L. 103–432, title I, § 152(a), (b), Oct. 31, 1994, 108 Stat. 4436; Pub. L. 105–33, title IV, § 4314, Aug. 5, 1997, 111 Stat. 389; Pub. L. 106–113, div. B, § 1000(a)(6) [title V, § 524(a)], Nov. 29, 1999, 113 Stat. 1536, 1501A–387; Pub. L. 108–173, title I, § 101(e)(8)(B), title V, § 507(a), Dec. 8, 2003, 117 Stat. 2152, 2295; Pub. L. 110–275, title I, § 143(b)(9), July 15, 2008, 122 Stat. 2543; Pub. L. 111–148, title VI, §§ 6001(a), 6003(a), title X, § 10601(a), Mar. 23, 2010, 124 Stat. 684, 697, 1005; Pub. L. 111–152, title I, § 1106, Mar. 30, 2010, 124 Stat. 1049; Pub. L. 115–123, div. E, title IV, § 50404, Feb. 9, 2018, 132 Stat. 218; Pub. L. 117–328, div. FF, title IV, § 4126(a), Dec. 29, 2022, 136 Stat. 5913.)

cite as: 42 USC 1395nn