Proposed limits on doctors' hospital ownership debated in Tennessee

Under a provision in the mental health parity bill that the House has passed, overall doctors' ownership in existing hospitals would be restricted to 40% and the stake of any individual doctor would be limited to 2%. The provision also would prohibit doctors' ownership in new hospitals that serve Medicare and Medicaid patients. If that provision were in place today, Franklin, TN-based Surgical Development Partners wouldn't be doubling the size of a hospital in Houston that's owned 90 percent by doctors and 10 percent by the company, said Partners Chief Executive Eddie Alexander.