Farm Bill will not include provision to ban physician referrals to specialty hospitals

Senate conferees in negotiations on the farm bill have withdrawn a proposal that the conference report include a provision under which physicians could not refer patients to specialty hospitals in which they have a financial interest amid opposition from House conferees and others, CongressDaily reports.

According to the Congressional Budget Office, the provision, as an offset, would raise an estimated $2.4 billion over 10 years. Opponents maintain that the provision would limit patient choice, and supporters maintain that the measure would eliminate a conflict of interest for physicians.

Senate Finance Committee Chair Max Baucus (D-Mont.), ranking member Chuck Grassley (R-Iowa) and Senate Republican Conference Chair Lamar Alexander (Tenn.) support the provision.

On Friday, Senate Minority Whip John Kyl (R-Ariz.) and House Energy and Commerce Committee ranking member Joe Barton (R-Texas) sent a letter to conferees in negotiations on the farm bill in opposition to the provision. Kyl and Barton also asked CBO to explain the estimate of the amount that the provision would raise as an offset, as the office has revised the assessment several times over the past few months and previously said that the measure would produce "minimal savings." The letter includes signatures from three additional senators and 23 House members.

The American Medical Association on Thursday issued a statement in opposition to the provision (Johnson, CongressDaily, 4/21).