On December 5, 2013, CMS issued a Medical Learning Network Letter noting that the deadline for physician-owned hospitals to report ownership and investment information as required by the Affordable Care Act (“ACA”) has been extended to March 1, 2014.
Background
Section 6001 of the ACA imposed additional reporting requirements on physician-owned hospitals availing themselves of the whole hospital or rural provider exception. 42 CFR 411.362(b)(3)(i) provides: “At such time and in such manner as specified by CMS, the [physician-owned] hospital must submit an annual report to CMS containing a detailed description of the identity of each owner or investor in the hospital and the nature and extent of all ownership and investment interests in the hospital.” Until recently, CMS had remained silent in regard to the implementation of these reporting requirements.
On September 13, 2013, however, CMS issued a Medical Learning Network Letter addressing new guidance for meeting the annual reporting requirements for physician-owned hospitals.1 The letter indicated that hospitals with physician owners and/or investors wishing to rely on the Stark Law whole hospital or rural provider exception would be required to meet the annual reporting requirement no later than December 1, 2013 by completing and filing the Medicare Enrollment Application CMS-855A. Additional details regarding the September 13, 2013 letter can be found here.
New Guidance
CMS has extended the deadline for submitting the information required to satisfy the ACA annual reporting requirement to March 1, 2014.
Practical Takeaways
Physician-owned hospitals that rely on the Stark Law whole hospital exception or rural provider exception are required to take action and submit the information required to satisfy the ACA annual reporting requirement. A physician-owned hospital’s failure to make the necessary filing on or before March 1, 2014 could result in a permanent loss of grandfathered status under the Stark Law whole hospital exception and/or rural provider exception. This filing is critical for physician-owned hospitals participating in the Medicare program.
If you have any questions or would like additional information on this topic, please contact Andrea Impicciche at 317.977.1578 or aimpicciche@hallrender.com or your regular Hall Render attorney.
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1 MLN Matters, SE 1332, September 13, 2013
