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CMS will not extend specialty hospital moratorium

Ambulatory Surgery Reimbursement Update, May 23, 2006

CMS Administrator Mark McClellan, MD, PhD, told the House Energy and Commerce Subcommittee on Health last week that CMS does not have the authority to extend the moratorium on Medicare payments to new physician-owned specialty hospitals past its current deadline of August 8, according to the Kaiser Daily Health Policy Report, citing a report from CQ Healthbeat.

McClellan also indicated that CMS will revise Medicare reimbursement to specialty hospitals. Finally, CMS will also develop regulations to prevent conflicts of interests for physician owners and prevent specialty hospitals from choosing only to perform those procedures that are the most profitable and safest, according to Kaiser.

Click here to read a transcript of McClellan's speech to the subcommittee.

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