Republican Lawmakers Criticize Specialty Hospital Amendment In Supplemental War Appropriations Bill

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Public Health
Article Date: 04 Jun 2008 - 5:00 PST

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Four Republican lawmakers on Monday in a letter to the Senate Appropriations Committee criticized an amendment to a supplemental war appropriations bill (HR 2642) that would allow some physician-owned specialty hospitals to continue to participate in Medicare and Medicaid, CongressDaily reports (Edney, CongressDaily, 6/3).

The legislation originally would have banned participation in Medicare and Medicaid by many current or planned specialty hospitals or required physicians with ownership stakes in the facilities to sell some of their shares. The amendment, which the committee approved during a May 15 mark up as part of a manager's amendment proposed by Chair Robert Byrd (D-W.Va.), would exclude several specialty hospitals in four states. The bill originally would have saved $1.6 billion over 10 years, but the amendment would reduce that amount by $300 million, in large part because of increased Medicare and Medicaid payments (Kaiser Daily Health Policy Report, 5/20).

In a "Dear Colleague" letter, Senate Minority Whip Jon Kyl (R-Ariz.), Sen. Tom Coburn (R-Okla.), House Energy and Commerce Committee ranking member Joe Barton (R-Texas) and Rep. Sam Johnson (Texas) wrote that the amendment is an earmark "written to look as if it applies to many, but cleverly designed to include only a few" specialty hospitals. The lawmakers also called for an elimination of the ban.

They wrote, "Since the committee completed its work, opponents of physician-owned hospitals have spread misinformation that may lead some members of Congress to think that any existing physician-owned hospitals in their states will be protected and allowed to grow in the future." According to the letter, the amendment would apply only to eight specialty hospitals in California, Texas, Washington state and Wisconsin. "As you can see, it is highly unlikely that any physician-owned hospitals in your state will benefit from these provisions," the lawmakers wrote (CongressDaily, 6/3).

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