This bill changes parts of section 1877 of the Social Security Act that deal with physician self-referral rules for physician-owned hospitals. It creates a new definition called a "covered rural hospital." A covered rural hospital must be in a rural area (per section 1886(d)(2)(D)) and be more than a 35-mile drive from another hospital or critical access hospital (or more than a 15-mile drive in mountainous areas or where only secondary roads exist). The bill inserts exceptions in existing self-referral provisions so that some rules no longer apply to covered rural hospitals. It also amends rules about expansion of existing physician-owned hospitals by adding a new paragraph that removes the earlier prohibition on expansion beginning on the date this change takes effect.
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