CMS Guidance to Surveyors on ACA Physician-Owned Hospital Provisions

CMS has issued guidance to state survey agencies on limitations on new and expanded physician-owned hospitals (PoHs) under the ACA. The memo notes that the ACA provision does not prohibit licensure by the states or Medicare certification by the CMS of new or expanded PoHs. Specifically, survey agency and regional office survey and certification personnel are not required under ACA Section 6001 to investigate whether a hospital seeking Medicare certification is a new PoH or has increased the number of licensed beds or operating/procedure rooms beyond those licensed on the applicable date, or to advise PoHs during the Medicare certification process of the limitations on physician referrals and related billing.

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