New Health Care Act Bars Physicians From Building New Physician Owned Hospitals
Physician owned hospitals, POHs, have taken a financial hit by the newest update of the Affordable Health Care Act of 2010. The update essentially states that physicians can no longer build new hospitals. Those physicians who already own hospitals are now faced with a new investment report form that must be filled out and returned to the Medicare Centers Services. The form is designed as a tool to meet transparency documentation standards. POH opponents of the new requirements claim their ownership issues and the ban on any new startup hospitals only benefit not-for-profit hospitals.
Seek Legal Exemption From Affordable Act Restriction
You are allowed under the new rule to expand your facility's capacity if your physician-owned business qualifies as a high Medicaid practice or as an applicable hospital that meets CMS codes. Request your facility's exemption from the Act's restriction so that you can take advantage of this exception clause.
Initial Ownership Investment Report Form
You are now also required to submit a new form, CMS-855POH, which replaces the CMS-855A attachment form that you filed in the past when submitting your Initial Annual Ownership Investment Report. CMS wants you to continue monitoring the Physician Self-Referral Website so that you can be aware of the current extended time and revised deadline to submit your annual ownership report.
High Second Revenue Stream Fees
Doctors are paid professional fees for services rendered. However, the financial gains are increasingly higher when they use their own facilities for services such as surgery, bed occupancy, length of stay and other after care ancillary services associated with inpatient care. These revenue fees are referred to as second revenue stream,
At the heart of the contention is the feeling expressed by physicians that the new health care rules are favorable only to not-for-profit hospitals. The physicians who own hospitals say the not-for-profits will gain most of the second revenue stream profits, according to a Forbes Magazine article written by David Whelan on April 5th of this year.
Referring Your Patients To Your Hospitals
Advocates for physician owned homes want to also build their own hospitals and use them for referral purposes rather than referring their patients to not-for-profit hospitals. Second revenue reimbursement fees go straight into the bank accounts of POHs when they have ownership of their own hospitals. While you cannot build more hospitals, according to the law, simply take advantage of the CMS offer and request an exemption for your current POH operations. Make sure that you have the required proper documentation to qualify for an exemption.
For more information about physician owned specialty hospitals, contact a company like Nueterra.