Congress urged not to repeal or weaken self-referral law

The AHA and Federation of American Hospitals today urged Congress to oppose H.R.1330/S.4130 and any other legislation that would repeal or weaken current law limiting self-referral to physician-owned hospitals.
 
“For more than two decades, community hospitals, policymakers, the business community and governmental advisory bodies have grappled with overutilization and higher health care costs caused by self-referral to physician-owned hospitals,” the organizations wrote. “Conflicts of interest are inherent in these arrangements, whereby physicians refer their patients to hospitals in which they have an ownership interest. … Current law is working exactly as planned to protect taxpayers and ensure a more level playing field — one that promotes fair competition. It is a carefully crafted policy with an important safeguard that permits limited expansion of grandfathered hospitals to meet demonstrated community need.”