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S 1390
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Physician Led and Rural Access to Quality Care Act

To amend title XVIII of the Social Security Act to revise certain physician self-referral exemptions relating to physician-owned hospitals.

Introduced Apr 9, 2025

Latest action (Apr 9, 2025) Read twice and referred to the Committee on Finance.

Referred to
Finance Committee
Policy area
Health
Issues
Healthcare

Summary
  • Creates exemptions from physician self-referral restrictions for physician-owned hospitals located in rural areas that meet specific Medicare enrollment criteria.
  • Allows existing physician-owned hospitals to expand their services by removing a previous prohibition on expansion.
  • The rural hospital exemptions apply only to hospitals in rural areas and do not affect the rules for urban or other hospitals.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)
9 cosponsors

Actions (2)
  1. Apr 9, 2025 Read twice and referred to the Committee on Finance. · senate
  2. Apr 9, 2025 Introduced in Senate

Text versions (1)
  • Introduced in Senate · Apr 9, 2025

Only one text version is on file, so there’s no earlier version to compare against yet.

Full text

IN THE SENATE OF THE UNITED STATES

April 9, 2025

Mr. Lankford (for himself, Mr. Marshall, Mr. Cassidy, Mr. Tillis, Mr. Cornyn, Mr. Mullin, Mr. Boozman, Mr. Barrasso, and Mr. Budd) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XVIII of the Social Security Act to revise certain physician self-referral exemptions relating to physician-owned hospitals.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Physician Led and Rural Access to Quality Care Act”.

SEC. 2. REVISING CERTAIN PHYSICIAN SELF-REFERRAL EXEMPTIONS RELATING TO PHYSICIAN-OWNED HOSPITALS.

(a) In General.—Section 1877 of the Social Security Act (42 U.S.C. 1395nn) is amended—

(1) in subsection (d)—

(A) in paragraph (2)(C), by inserting “(other than a covered rural hospital (as defined in subsection

(h)))” after “a hospital”; and

(B) in paragraph (3)(D), by inserting “in the case of a hospital other than a covered rural hospital (as defined in subsection (h)),” before “the hospital”; and

(2) in subsection (h), by adding at the end the following new paragraph:

“(8) Covered rural hospital.—

“(A) In general.—The term ‘covered rural hospital’ means a hospital that—

“(i) is located in a rural area (as defined in section 1886(d)(2)(D)); and

“(ii) as of the date that such hospital enrolls under this title, meets the criteria described in clause (i)(I) of section 1820(c)(2)(B).

“(B) Clarification.—Nothing in this paragraph shall be interpreted as requiring a covered rural hospital to meet any other criteria under section 1820(c)(2)(B).”.

(b) Allowing for Expansion of Existing Physician-Owned Hospitals.— Section 1877(i) of the Social Security Act (42 U.S.C. 1395nn(i)) is amended—

(1) in paragraph (1)(B), by striking “in paragraph (3)” and inserting “in paragraph (3) or (7)”; and

(2) by adding at the end the following new paragraph:

“(7) Sunset of expansion prohibition.—The requirement described in paragraph (1)(B) shall not apply beginning on the date of the enactment of this paragraph.”. <all>

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