Hospital Chains in Congressional Probe
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MedCath Corp. and other specialty hospital chains are under scrutiny by the chairman of the House Ways and Means Committee, which oversees Medicare, officials said.
Speaking to health-care executives in Washington, D.C., Rep. Bill Thomas (R-Bakersfield) said facilities such as MedCath’s heart hospitals shouldn’t be allowed to carve out profitable lines of business without providing services such as emergency care.
MedCath, based in Charlotte, N.C., operates a heart hospital in Bakersfield, Thomas’ congressional district.
Local doctors own equity interests in MedCath’s hospitals. Thomas said he would like to see better enforcement of anti-fraud rules that bar doctors from referring Medicare and Medicaid patients for certain health services to company-owned facilities when they own a financial stake.
MedCath, in its Securities and Exchange Commission filings, said its business practices are legal.
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