Enforcement of Amended Requirements for Certain Hospital and CAH Disclosures To Patients

1. Revision to Physician-owned Hospital Disclosure Requirements. 42 CFR 489.3 and 489.20(u) and (v) were amended, effective October 1, 2008, to: Expand the definition of physician-owned hospital to include a participating hospital in which a physician or immediate family member of a physician has an ownership interest in the hospital; Require hospitals/CAHs to provide a list of physician owners at the time a patient requests it; Require hospitals/CAHs to make disclosure at the time of referral a condition of medical staff membership for referring physician owners; and Exempt from the disclosure requirements hospitals whose physician owners do not refer patients. 2. Clarification of Termination Basis. 42 CFR 489.53 was also amended as of October 1, 2008, to clarify that CMS may terminate the provider agreement of hospitals or CAHs that fail to make required disclosures, including disclosures when a hospital does not have a physician on site 24/7.