PHYSICIAN OWNERSHIP AND REFERRAL.

SEC. 152. PHYSICIAN OWNERSHIP AND REFERRAL. (a) In General.— Section 1877(f) (42 U.S.C. 1395nn) is amended— (1) in the matter before paragraph (1), by inserting “, investment, and compensation” after “ownership”; (2) in paragraph (2), by inserting “, or with a compensation arrangement (as described in subsection (a)(2)(B)),” after “investment interest (as described in subsection (a)(2)(A))”; (3) in paragraph (2), by inserting “interest or who have such a compensation relationship with the entity” before the period at the end; (4) in the fourth sentence, by striking “covered items and” and inserting “designated health”; and (5) by striking the third and fifth sentences. (b) Radiology Services.— Section 1877(h)(6) (42 U.S.C. 1395nn(h)(6)), as amended by section 13562(a)(2) of OBRA-1993, is amended— (1) in subparagraph (D), by striking “or other diagnostic services” and inserting “services, including magnetic resonance108 STAT. 4437 imaging, computerized axial tomography scans, and ultrasound services”; and (2) in subparagraphs (E), (F), and (H), by inserting “and supplies” before the period at the end. (c) Revision of Effective Date Exception Provision.— Section 13562(b)(2) of OBRA-1993 is amended by striking subparagraphs (A) and (B) and inserting the following: “(A) the second sentence of subsection (a)(2), and subsections (b)(2)(B) and (d)(2), of section 1877 of the Social Security Act (as in effect on the day before the date of the enactment of this Act) shall apply instead of the corresponding provisions in section 1877 (as amended by this Act); “(B) section 1877(b)(4) of the Social Security Act (as in effect on the day before the date of the enactment of this Act) shall apply; “(C) the requirements of section 1877(c)(2) of the Social Security Act (as amended by this Act) shall not apply to any securities of a corporation that meets the requirements of section 1877(c)(2) of the Social Security Act (as in effect on the day before the date of the enactment of this Act); “(D) section 1877(e)(3) of the Social Security Act (as amended by this Act) shall apply, except that it shall not apply to any arrangement that meets the requirements of subsection (e)(2) or subsection (e)(3) of section 1877 of the Social Security Act (as in effect on the day before the date of the enactment of this Act); “(E) the requirements of clauses (iv) and (v) of section 1877(h)(4)(A), and of clause (i) of section 1877(h)(4)(B), of the Social Security Act (as amended by this Act) shall not apply; and “(F) section 1877(h)(4)(B) of the Social Security Act (as in effect on the day before the date of the enactment of this Act) shall apply instead of section 1877(h)(4)(A)(ii) of such Act (as amended by this Act).”. (d) Effective Dates.— (1) The amendments made by subsections (a) and (b) shall apply to referrals made on or after January 1, 1995. (2) The amendment made by subsection (c) shall apply as if included in the enactment of OBRA-1993.