Sponsors
Last progress April 24, 2025 (10 months ago)
Introduced on April 24, 2025 by Victoria Spartz
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Edits Section 1877 of the Social Security Act by changing parts of subsection (d) and removing subsection (i), deleting specific subparagraphs and adjusting wording that define how hospitals qualify for the rural provider and hospital exception to the statutory ownership/investment prohibition. The change is a targeted, technical revision to the qualification rules for that exception and does not itself create new funding or program authorizations. Affected hospitals, physician investors, and compliance officers should review existing ownership and investment arrangements to confirm continued eligibility under the revised text.
In Section 1877, subsection (d)(2)(A): at the end of subparagraph (A) insert the word "and".
In Section 1877, subsection (d)(2)(B): at the end of subparagraph (B) strike the existing text at the end and insert a period.
In Section 1877, subsection (d)(2): strike subparagraph (C) in its entirety.
In Section 1877, subsection (d)(3)(B): at the end of subparagraph (B) insert the word "and".
In Section 1877, subsection (d)(3)(C): at the end of subparagraph (C) strike the existing text at the end and insert a period.
Who is affected and how:
Rural hospitals and facilities (including critical access hospitals): The amendment directly changes the statutory text that governs whether these hospitals qualify for the rural provider and hospital exception to the ownership/investment prohibition. If an arrangement previously relied on a subparagraph that is removed, the hospital may no longer qualify for the exception without changes to the arrangement or regulatory interpretation.
Hospital owners, physician investors, and prospective investors: Ownership and investment structures that were designed to rely on the rural exception should be reviewed. Some investors may need to renegotiate terms or change ownership arrangements to remain compliant.
Hospital legal and compliance teams: Will bear the immediate burden of analyzing the changes, determining effects on existing agreements, and updating policies and documentation.
CMS and regulators: May need to issue clarifying guidance, interpretive rules, or compliance instructions to explain how the deletions and wording changes affect eligibility and enforcement.
Patients and referral patterns: Indirect effects are possible if ownership arrangements change or if hospitals lose exception status and thereby alter referral or service availability; however, no direct patient entitlement or payment changes are specified.
Overall effect: The legislation is a technical change to statutory qualification language. It may change which hospitals or ownership structures qualify for the rural exception, triggering compliance reviews and potential transactional adjustments, but it does not itself authorize new spending or change benefit entitlements.