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This bill amends Medicare law to revise physician self-referral rules (the Stark Law) relating to physician-owned hospitals. It creates a new exemption for 'covered rural hospitals'—defined as rural facilities located more than 35 miles (or 15 miles in mountainous terrain) from another hospital—allowing physicians at these facilities to refer patients without triggering self-referral restrictions. The bill also removes a prohibition on the expansion of existing physician-owned hospitals, effective upon enactment.
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