As modified by sections 10601(a)(1) and 1106(1) of HCERA, revises the standing Medicare physician self-referral prohibition such that only hospitals with a Medicare provider agreement in effect on December 31, 2010 and that meet specified requirements (e.g., pertaining to a limitation on expansion of facility capacity, preventing conflicts of interest, etc.) by September 23, 2011 may qualify for the rural provider and hospital exception to ownership or investment prohibition.
Directs the Secretary of HHS to publish via the Internet, and update on an annual basis thereafter, information submitted by the hospitals via the annual reports that disclose specified information regarding physician (and broader) ownership or investment. Further directs the Secretary to, not later than February 1, 2012, establish and implement a process (with regulations promulgated not later than January 1, 2012), to provide for a limited (whereby hospitals may apply once every two years) exemption to the prohibition for certain hospitals expanding facility capacity, including hospitals treating a large proportion of Medicaid beneficiaries. With respect to enforcement mechanisms, directs the Secretary to establish policies and procedures to ensure compliance with the requirements outlined above, including via unannounced hospital site reviews, as well as to, not later than May 1, 2012, conduct audits of the hospitals.