Revising certain physician self-referral exemptions relating to physician-owned hospitals

(a) In general Section 1877 of the Social Security Act (42 U.S.C. 1395nn) is amended— (1) in subsection (d)— (A) in paragraph (2)(C), by inserting (other than a covered rural hospital (as defined in subsection (h))) after a hospital; and (B) in paragraph (3)(D), by inserting in the case of a hospital other than a covered rural hospital (as defined in subsection (h)), before the hospital; and (2) in subsection (h), by adding at the end the following new paragraph: (8) Covered rural hospital (A) In general The term covered rural hospital means a hospital that— (i) is located in a rural area (as defined in section 1886(d)(2)(D)); and (ii) as of the date that such hospital enrolls under this title, meets the criteria described in clause (i)(I) of section 1820(c)(2)(B). (B) Clarification Nothing in this paragraph shall be interpreted as requiring a covered rural hospital to meet any other criteria under section 1820(c)(2)(B).. (b) Allowing for expansion of existing physician-Owned hospitals Section 1877(i) of the Social Security Act (42 U.S.C. 1395nn(i)) is amended— (1) in paragraph (1)(B), by striking in paragraph (3) and inserting in paragraph (3) or (7); and (2) by adding at the end the following new paragraph: (7) Sunset of expansion prohibition The requirement described in paragraph (1)(B) shall not apply beginning on the date of the enactment of this paragraph..