Editorial Note on Part 411
Editorial Note: Nomenclature changes to part 411 appear at 71 FR 9471, Feb. 24, 2006

§ 411.356 Exceptions to the referral prohibition related to ownership or investment interests. For purposes of § 411.353, the following ownership or investment interests do not constitute a financial relationship: ( a ) *Publicly traded securities.* Ownership of investment securities (including shares or bonds, debentures, notes, or other debt instruments) that at the time the DHS referral was made could be purchased on the open market and that meet the requirements of paragraphs (a)(1) and (2) of this section. ( 1 ) They are either— ( i ) Listed for trading on the New York Stock Exchange, the American Stock Exchange, or any regional exchange in which quotations are published on a daily basis, or foreign securities listed on a recognized foreign, national, or regional exchange in which quotations are published on a daily basis;
( ii ) Traded under an automated interdealer quotation system operated by the National Association of Securities Dealers; or
( iii ) Listed for trading on an electronic stock market or over-the-counter quotation system in which quotations are published on a daily basis and trades are standardized and publicly transparent.
( 2 ) They are in a corporation that had stockholder equity exceeding $75 million at the end of the corporation's most recent fiscal year or on average during the previous 3 fiscal years. “Stockholder equity” is the difference in value between a corporation's total assets and total liabilities.
( b ) *Mutual funds.* Ownership of shares in a regulated investment company as defined in section 851(a) of the Internal Revenue Code of 1986, if the company had, at the end of its most recent fiscal year, or on average during the previous 3 fiscal years, total assets exceeding $75 million.
( c ) *Specific providers.* Ownership or investment interest in the following entities, for purposes of the services specified: ( 1 ) A rural provider, in the case of DHS furnished in a rural area (as defined at § 411.351 of this part) by the provider. A “rural provider” is an entity that furnishes substantially all (not less than 75 percent) of the DHS that it furnishes to residents of a rural area and, for the 18-month period beginning on December 8, 2003 (or such other period as Congress may specify), is not a specialty hospital, and in the case where the entity is a hospital, the hospital meets the requirements of § 411.362 no later than September 23, 2011.
( 2 ) A hospital that is located in Puerto Rico, in the case of DHS furnished by such a hospital.
( 3 ) A hospital that is located outside of Puerto Rico, in the case of DHS furnished by such a hospital, if— ( i ) The referring physician is authorized to perform services at the hospital;
( ii ) Effective for the 18-month period beginning on December 8, 2003 (or such other period as Congress may specify), the hospital is not a specialty hospital;
( iii ) The ownership or investment interest is in the entire hospital and not merely in a distinct part or department of the hospital; and
( iv ) The hospital meets the requirements described in § 411.362 not later than September 23, 2011.
[85 FR 77656, Dec. 2, 2020]