What's Next For Physician-Owned Hospitals?

Law360, New York (February 23, 2009, 12:00 AM EST) -- In most situations, a physician, having invested in a hospital, is only permitted under federal law to refer Medicare patients to that facility because of a certain statutory exception to physician self-referral prohibitions.

But if the past is prologue, the continuing availability of this exception, hence the viability of business models involving physician investment in “single-specialty hospitals,” is far from assured.

The federal physician self-referral statute,[1] commonly known as “Stark Law,” prohibits physicians from referring Medicare patients to facilities in which they have ownership or investment...
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