CMS to review specialty hospital Conditions of Participation

On June 9, the Centers for Medicare & Medicaid Services (CMS) temporarily halted issuing new specialty hospital provider agreements and processing new provider enrollment applications for specialty hospitals while it reviews the Conditions of Participation and payment systems that apply to these facilities.

The announcement came a day after the 18-month congressional moratorium on physician self-referrals to specialty hospitals expired, although CMS had announced a six-month extension in May. The temporary halt in Medicare services does not apply to specialty hospitals that have submitted an enrollment application, or requested a CMS advisory opinion on whether they were subject to the self-referral moratorium, before June 9, 2005. CMS expects to complete the review by January 2006.