Affordable Care Act and Implications for Certification of Physician-owned Hospitals
The Affordable Care Act prohibits the referral of Medicare beneficiaries by physician owners or investors to new PoHs or to
existing PoHs that have expanded their facility capacity beyond their baseline (as described below). An exceptions process
allows some PoHs, which meet specific criteria, to expand after the baseline date.The statutory prohibition applies to physician
owner referral and hospital billing activity. It does not prohibit licensure by the States or Medicare certification by the
Centers for Medicare & Medicaid Services (CMS) of new or expanded PoHs.