Industry Pulse: June 2011

FRISCO, Texas – The general consensus among professionals involved in healthcare real estate, as well as the healthcare industry in general, is that the development of new physician-owned hospitals is dead, killed by Section 6001 of the Patient Protection & Affordable Care Act. The provision, for the most part, prohibited the opening of new physician-owned hospitals, as well as the expansion of existing ones, after Dec. 31. Any hospital that was not completed and certified by Medicare on that date can no longer bill the federal government for treating Medicaid and Medicare patients if an owner-doctor refers such patients to the hospital.

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