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New IPPS proposal requires disclosure of physician ownership in hospitals

Physician Practice Advisor, April 25, 2007

On April 13, the Centers for Medicare and Medicaid Services (CMS) posted its annual proposed update to the hospital inpatient prospective payment system (IPPS) for fiscal year 2008, which included new obligations to disclose physician ownership in hospitals.

The CMS proposal would require all hospitals, not just specialty hospitals, that are "physician-owned" to notify patients of this fact and provide a list of physician owners upon request. CMS is also proposing that that all physician owners who are also members of the hospital's medical staff disclose in writing their ownership interest to all patients they refer to the hospital.

The proposal defines "physician-owned hospital" as any participating hospital in which a physician or physicians have an ownership or investment interest. This could occur through equity, debt, or other means, and would include financial interests in an entity that owns or invests in the hospital, such as a parent holding company or health system.

Click here to read the CMS proposal.