Creating new facilities, services no longer requires THFC approval.
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These regulations implement sections 904 and 949 of Pub. L. 96-499, the Omnibus Reconciliation Act of 1980. Under section 904 (the swing-bed provision), certain small, rural hospitals may use their inpatient facilities to furnish skilled nursing facility (SNF) services to Medicare and Medicaid beneficiaries, and intermediate care facility (ICF) services to Medicaid beneficiaries. These hospitals will be reimbursed at rates appropriate for those services, which are generally lower than hospital rates. This statutory provision is intended to encourage the most efficient and effective use of inpatient hospital beds for delivery of either hospital or SNF and ICF services. Under section 949, rural hospitals of 50 or fewer beds may be exempted from certain personnel standards in the conditions of participation for hospitals. This exemption applies only to the extent that it does not jeopardize or adversely affect the health and safety of patients.
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Founders of healthcare companies, like entrepreneurs in general, dream of the opportunity to take their companies public. The benefits flowing from access to the public markets, however, carry with them additional responsibilities that are enforceable both by the regulatory authorities and the well-organized plaintiffs' securities bar. The authors of this Article provide the newly public company and its counsel extensive guidance for the navigation of this regulatory maze.
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