The Uncertain Future of Specialty Hospitals

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Abstract
In November 2003, Congress enacted legislation that imposed an 18-month moratorium on the development of new specialty hospitals that are partly owned by physicians who refer their patients to them.1 President George W. Bush signed the measure into law December 8 as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. Very soon, Congress must decide whether to extend the moratorium, as recommended by one of the two federal agencies that legislators directed to study the matter, or adopt policies that enable physician-owners to build new specialty hospitals and thus encourage a form of competition (i.e., patient . . .

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