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Medicare Agency Cracks Down On Specialty Hospitals

Law360 (August 9, 2006, 12:00 AM EDT) -- Specialty hospitals will be forced to report physician investments and compensation arrangements to make sure they do not violate self-referral and anti-kickback statutes, the Centers for Medicare & Medicaid Services (CMS) announced Tuesday in a report to Congress.

The measure was just one of a series of reforms recently proposed by CMS, most of which were designed to cut rising health-care costs.

“Transparency of investment information will help ensure that investments are bona fide and returns on investment are proportionate,” CMS said.

Critics of specialty hospitals...
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