Legislation limiting specialty hospitals unveiled

Reported yesterday in The Hill:

The hospital industry is cautiously eyeing legislation introduced yesterday by Sens. Chuck Grassley (R-Iowa) and Max Baucus (D-Mont.) that would place considerable restrictions on the burgeoning specialty-hospital sector while altering Medicare payments to all hospitals.

The influence of the powerful chairman of the Senate Finance Committee and the panel’s ranking member is considerable, but not enough to push a moratorium on new physician-owned specialty hospitals or the payment changes through Congress.

The specialty hospitals expect strong backing from key House Republicans. Ways and Means Committee Chairman Bill Thomas (R-Calif.) and Energy and Commerce Committee Chairman Joe Barton (R-Texas) have not publicly chosen sides.