diff --git a/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/extractor/ResourceIndexedSearchParams.java b/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/extractor/ResourceIndexedSearchParams.java
index 61770fc83c5..a2a3bac6fcd 100644
--- a/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/extractor/ResourceIndexedSearchParams.java
+++ b/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/extractor/ResourceIndexedSearchParams.java
@@ -282,9 +282,7 @@ public final class ResourceIndexedSearchParams {
 		} else {
 			ForcedId forcedId = target.getForcedId();
 			if (forcedId != null) {
-				// TODO KHS is forcedId.getForcedId().equals(theReference.getIdPart() also valid?
-				return forcedId.getForcedId().equals(theReference.getValue()) ||
-					forcedId.getForcedId().equals(theReference.getIdPart());
+				return forcedId.getForcedId().equals(theReference.getValue());
 			} else {
 				return false;
 			}
diff --git a/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/matcher/InMemoryResourceMatcher.java b/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/matcher/InMemoryResourceMatcher.java
index e7c509de7eb..6ec9d7ec244 100644
--- a/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/matcher/InMemoryResourceMatcher.java
+++ b/hapi-fhir-jpaserver-searchparam/src/main/java/ca/uhn/fhir/jpa/searchparam/matcher/InMemoryResourceMatcher.java
@@ -23,12 +23,14 @@ package ca.uhn.fhir.jpa.searchparam.matcher;
 import ca.uhn.fhir.context.FhirContext;
 import ca.uhn.fhir.context.RuntimeResourceDefinition;
 import ca.uhn.fhir.context.RuntimeSearchParam;
+import ca.uhn.fhir.jpa.model.entity.ModelConfig;
 import ca.uhn.fhir.jpa.searchparam.MatchUrlService;
 import ca.uhn.fhir.jpa.searchparam.SearchParameterMap;
 import ca.uhn.fhir.jpa.searchparam.extractor.ResourceIndexedSearchParams;
 import ca.uhn.fhir.jpa.searchparam.registry.ISearchParamRegistry;
 import ca.uhn.fhir.jpa.searchparam.util.SourceParam;
 import ca.uhn.fhir.model.api.IQueryParameterType;
+import ca.uhn.fhir.model.primitive.IdDt;
 import ca.uhn.fhir.rest.api.Constants;
 import ca.uhn.fhir.rest.api.RestSearchParameterTypeEnum;
 import ca.uhn.fhir.rest.param.BaseParamWithPrefix;
@@ -56,6 +58,8 @@ public class InMemoryResourceMatcher {
 	@Autowired
 	ISearchParamRegistry mySearchParamRegistry;
 	@Autowired
+	ModelConfig myModelConfig;
+	@Autowired
 	FhirContext myFhirContext;
 
 	/**
@@ -212,9 +216,29 @@ public class InMemoryResourceMatcher {
 	}
 
 	private boolean matchParams(String theResourceName, String theParamName, RuntimeSearchParam paramDef, List<? extends IQueryParameterType> theNextAnd, ResourceIndexedSearchParams theSearchParams) {
+		if (paramDef.getParamType() == RestSearchParameterTypeEnum.REFERENCE) {
+			stripBaseUrlsFromReferenceParams(theNextAnd);
+		}
 		return theNextAnd.stream().anyMatch(token -> theSearchParams.matchParam(theResourceName, theParamName, paramDef, token));
 	}
 
+	private void stripBaseUrlsFromReferenceParams(List<? extends IQueryParameterType> theNextAnd) {
+		if (myModelConfig.getTreatBaseUrlsAsLocal().isEmpty()) {
+			return;
+		}
+
+		for (IQueryParameterType param : theNextAnd) {
+			ReferenceParam ref = (ReferenceParam) param;
+			IIdType dt = new IdDt(ref.getBaseUrl(), ref.getResourceType(), ref.getIdPart(), null);
+
+			if (dt.hasBaseUrl()) {
+				if (myModelConfig.getTreatBaseUrlsAsLocal().contains(dt.getBaseUrl())) {
+					ref.setValue(dt.toUnqualified().getValue());
+				}
+			}
+		}
+	}
+
 	private boolean hasChain(List<List<IQueryParameterType>> theAndOrParams) {
 		return theAndOrParams.stream().flatMap(List::stream).anyMatch(param -> param instanceof ReferenceParam && ((ReferenceParam) param).getChain() != null);
 	}
diff --git a/hapi-fhir-jpaserver-subscription/src/test/java/ca/uhn/fhir/jpa/subscription/module/matcher/InMemorySubscriptionMatcherR3Test.java b/hapi-fhir-jpaserver-subscription/src/test/java/ca/uhn/fhir/jpa/subscription/module/matcher/InMemorySubscriptionMatcherR3Test.java
index 6bc490b2c95..e5ded60c29e 100644
--- a/hapi-fhir-jpaserver-subscription/src/test/java/ca/uhn/fhir/jpa/subscription/module/matcher/InMemorySubscriptionMatcherR3Test.java
+++ b/hapi-fhir-jpaserver-subscription/src/test/java/ca/uhn/fhir/jpa/subscription/module/matcher/InMemorySubscriptionMatcherR3Test.java
@@ -1,18 +1,23 @@
 package ca.uhn.fhir.jpa.subscription.module.matcher;
 
+import ca.uhn.fhir.jpa.model.entity.ModelConfig;
 import ca.uhn.fhir.jpa.searchparam.matcher.InMemoryMatchResult;
 import ca.uhn.fhir.jpa.searchparam.matcher.SearchParamMatcher;
 import ca.uhn.fhir.jpa.subscription.module.BaseSubscriptionDstu3Test;
 import ca.uhn.fhir.rest.api.server.IBundleProvider;
 import ca.uhn.fhir.rest.server.SimpleBundleProvider;
+import ca.uhn.fhir.util.UrlUtil;
 import org.hl7.fhir.dstu3.model.*;
 import org.hl7.fhir.dstu3.model.codesystems.MedicationRequestCategory;
 import org.hl7.fhir.instance.model.api.IBaseResource;
 import org.hl7.fhir.instance.model.api.IIdType;
+import org.junit.After;
 import org.junit.Test;
 import org.springframework.beans.factory.annotation.Autowired;
 
 import java.util.Collections;
+import java.util.HashSet;
+import java.util.Set;
 
 import static org.junit.Assert.*;
 
@@ -21,6 +26,8 @@ public class InMemorySubscriptionMatcherR3Test extends BaseSubscriptionDstu3Test
 	SubscriptionStrategyEvaluator mySubscriptionStrategyEvaluator;
 	@Autowired
 	SearchParamMatcher mySearchParamMatcher;
+	@Autowired
+	ModelConfig myModelConfig;
 
 	private void assertUnsupported(IBaseResource resource, String criteria) {
 		assertFalse(mySearchParamMatcher.match(criteria, resource, null).supported());
@@ -48,6 +55,10 @@ public class InMemorySubscriptionMatcherR3Test extends BaseSubscriptionDstu3Test
 		assertEquals(theSubscriptionMatchingStrategy, mySubscriptionStrategyEvaluator.determineStrategy(criteria));
 	}
 
+	@After
+	public void after() {
+		myModelConfig.setTreatBaseUrlsAsLocal(new ModelConfig().getTreatBaseUrlsAsLocal());
+	}
 
 	/**
 	 * Technically this is an invalid reference in most cases, but this shouldn't choke
@@ -580,4 +591,35 @@ public class InMemorySubscriptionMatcherR3Test extends BaseSubscriptionDstu3Test
 
 		assertNotMatched(observation, criteria);
 	}
+
+	@Test
+	public void testExternalReferenceMatches() {
+		String goodReference = "http://example.com/base/Organization/FOO";
+		String goodCriteria = "Patient?organization=" + UrlUtil.escapeUrlParam(goodReference);
+
+		String badReference1 = "http://example.com/bad/Organization/FOO";
+		String badCriteria1 = "Patient?organization=" + UrlUtil.escapeUrlParam(badReference1);
+
+		String badReference2 = "http://example.org/base/Organization/FOO";
+		String badCriteria2 = "Patient?organization=" + UrlUtil.escapeUrlParam(badReference2);
+
+		String badReference3 = "https://example.com/base/Organization/FOO";
+		String badCriteria3 = "Patient?organization=" + UrlUtil.escapeUrlParam(badReference3);
+
+		String badReference4 = "http://example.com/base/Organization/GOO";
+		String badCriteria4 = "Patient?organization=" + UrlUtil.escapeUrlParam(badReference4);
+
+		Set<String> urls = new HashSet<>();
+		urls.add("http://example.com/base/");
+		myModelConfig.setTreatBaseUrlsAsLocal(urls);
+
+		Patient patient = new Patient();
+		patient.getManagingOrganization().setReference("Organization/FOO");
+
+		assertMatched(patient, goodCriteria);
+		assertNotMatched(patient, badCriteria1);
+		assertNotMatched(patient, badCriteria2);
+		assertNotMatched(patient, badCriteria3);
+		assertNotMatched(patient, badCriteria4);
+	}
 }