[Federal Register Volume 66, Number 23 (Friday, February 2, 2001)]
[Rules and Regulations]
[Page 8771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2937]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration

42 CFR Parts 411 and 424

[HCFA-1809-F2]


Medicare and Medicaid Programs; Physicians' Referrals to Health 
Care Entities With Which They Have Financial Relationships: Delay of 
Effective Date of Final Rule and Technical Amendment

AGENCY: Health Care Financing Administration (HCFA), DHHS.

ACTION: Delay of effective date of final rule and technical amendment.

-----------------------------------------------------------------------

SUMMARY: In accordance with the memorandum of January 20, 2001, from 
the Assistant to the President and Chief of Staff, entitled 
``Regulatory Review Plan,'' published in the Federal Register on 
January 24, 2001, this action temporarily delays for 60 days the 
effective date of revised Sec. 424.22 contained in the rule entitled 
``Medicare and Medicaid Programs; Physicians' Referrals to Health Care 
Entities With Which They Have Financial Relationships,'' published in 
the Federal Register on January 4, 2001 (66 FR 856). That rule 
prohibits physicians from referring patients for the furnishing of 
certain designated health services to health care entities with which 
they (or their immediate family members) have financial relationships 
under the Medicare and Medicaid programs. Home health services are a 
designated health service. Section 424.22 revises the physician 
certification and plan of treatment requirements for home health 
services to comply with provisions in section 1877 of the Social 
Security Act (the Act). Section 424.22, which would have become 
effective February 5, 2001, will now become effective April 6, 2001.
    The 60-day delay in effective date is necessary to give Department 
officials the opportunity for further review and consideration of new 
regulations, consistent with the Assistant to the President's 
memorandum of January 20, 2001.

DATES: The effective date of the revision to paragraph (d) and the 
removal of paragraphs (e), (f), and (g) in Sec. 424.22 of the final 
rule entitled ``Physicians'' Referrals to Health Care Entities With 
Which They Have Financial Relationships,'' published in the Federal 
Register on January 4, 2001 (66 FR 856), is delayed for 60 days, from 
February 5, 2001 to a new effective date of April 6, 2001.

FOR FURTHER INFORMATION CONTACT: Joanne Sinsheimer, Center for Health 
Plans and Providers, Health Care Financing Administration, 7500 
Security Boulevard, Baltimore, Maryland 21244, (410) 786-4620.

SUPPLEMENTARY INFORMATION:

Technical Correction

    In FR Doc. 01-4 of January 4, 2001 (66 FR 856), there was a 
technical error. In amendatory instruction number 2, in column three, 
on page 962, we correctly stated that in Sec. 424.22, paragraph (d) was 
revised and paragraphs (e), (f), and (g) were removed. We intended that 
these changes would take effect at the same time, that is, February 5, 
2001 (now being delayed until April 6, 2001). However, in the 
``Effective date'' section of the January 4, 2001 final rule, we 
indicated that only paragraph (d) of Sec. 424.22 would take effect 
February 5, 2001 (now April 6, 2001). We failed to state that the 
removal of paragraphs (e), (f), and (g) of Sec. 424.22 would also be 
effective February 5, 2001 (now April 6, 2001). This document corrects 
that error.
    The exceptions in Sec. 424.22(e) through (g) have been superseded 
by section 1877 of the Act. As noted in the preamble to the January 4, 
2001 final rule, we believe that we do not have the legal authority to 
retain these exceptions in any meaningful way. We therefore explained 
that we did not intend to include the exceptions in the revised home 
health certification regulations (66 FR 936-937). As we pointed out in 
the preamble to the January 9, 1998 proposed rule (63 FR 1680), even if 
a physician and a home health agency are involved in an arrangement 
that meets one of the home health exceptions at issue, the arrangement 
simultaneously remains subject to the requirements in section 1877 of 
the Act.

Correction of Error in the Preamble

    On page 856, in column two, the ``Effective date'' section is 
corrected to read as follows:
    ``Effective date: The regulations delineated in Phase I of this 
rulemaking are effective on January 4, 2002, except for the revision to 
paragraph (d) and the removal of paragraphs (e), (f), and (g) in 
Sec. 424.22, which are effective April 6, 2001.''

(Catalog of Federal Domestic Assistance Program No. 93.773 
Medicare--Hospital Insurance Program; No. 93.774, Medicare--
Supplementary Medical Insurance Program; No. 93.778, Medical 
Assistance Program)

    Dated: January 26, 2001.
Michael McMullan,
Acting Deputy Administrator, Health Care Financing Administration.

    Approved: January 30, 2001.
David Satcher,
Acting Secretary.
[FR Doc. 01-2937 Filed 2-1-01; 8:45 am]
BILLING CODE 4120-01-P