Health Care Law

CMS: More Hospital Beds Don't Expand Facility Capacity

, The Legal Intelligencer


In a recent advisory opinion, the Centers for Medicare and Medicaid Services (CMS) addressed the proposed addition of observation beds to an existing physician-owned hospital for purposes of the "whole hospital" exception under the Stark Law. Specifically, CMS stated that the addition of 14 observation beds would not constitute an impermissible expansion of facility capacity under Section 1877(i)(1)(B) of the Social Security Act. The opinion is titled CMS-AO-2013-03, and it was issued Nov. 11.

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