CMS to Require Hospitals to Complete Report Concerning Investment Interests and Compensation Relationships with Physicians

Background

Section 5006 of the Deficit Reduction Act (DRA), enacted on February 8, 2006, directs the Secretary of the Department of Health and Human Services (HHS) to develop a "strategic and implementing plan" to address certain issues relating to physician investment in specialty hospitals.   To obtain a more complete depiction of the proportionality of physician investment in specialty hospitals, HHS created a voluntary DRA survey instrument that was sent to both specialty and competitor hospitals.  In the Final Report to the Congress and Strategic and Implementing Plan released in August 2006,  HHS stated that it would require all hospitals to provide information to us on a periodic basis concerning their investment and compensation relationships with physicians pursuant to 42 CFR §411.361. 

Selection of Hospitals and Timeframes

HHS/CMS will initially select 500 hospitals that will be required to report this financial information.  Because we are unable to determine whether those hospitals that did not respond to the DRA survey questions on investments and compensation relationships had tainted relationships, or whether their non-response was for other reasons, we are beginning this financial disclosure initiative with those 290 hospitals and have added an additional 210 hospitals, for a total of 500 hospitals.  

The purpose of this new mandatory disclosure instrument ("Disclosure of Financial Relationships Report" or "DFRR") is to collect information that will be subsequently used to analyze all investment interests or compensation arrangements between each of the 500 hospitals and their respective physicians.  In September 2007, CMS will send the mandatory DFRR, which consists of an Excel spreadsheet and instructions electronically to 500 hospitals.  Hospital respondents will be required to submit a completed hardcopy of the DFRR to CMS within 45 days.   Section 1877(g) of the Social Security Act provides that failure to disclose in a timely manner the information sought can result in civil monetary penalties of up to $10,000 for each day beyond the deadline established for disclosure. 

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Federal Register Notice, Published on Dec. 19, 2008 - Agency Information Collection Activities: Submission for OMB Review; Comment Request - Type of Information Collection Request: New collection; Title of Information Collection: Disclosure of Financial Relationships Report (''DFRR'') (located on page 77702, column 1)

Page Last Modified: 12/23/2008 10:47:33 AM
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