House lawmakers want to relax ban on physician-owned hospitals
Concerned for the state of rural healthcare access and the merging of health systems, a group in the U.S. House of Representatives has introduced a bill that would allow for the opening of new hospitals—specifically, new hospitals owned by physicians.
The bipartisan Physician Led and Rural Access to Quality Care Act was put forth as an amendment to Title XVIII of the Social Security Act, which bans the opening of new physician-owned hospitals, arguably to alleviate a conflict of interest and protect patients from unnecessary care.
The bill is sponsored by Michael Burgess, MD, (R-TX, Tony Cardenas (D-CA), Morgan Griffith (R-VA.) and Vincent Gonzalez (D-TX). In an announcement, the group said the bill will also allow “certain exemptions to rules for physician owned hospitals in rural areas and remove a ban that prevents existing physician owned hospitals from expanding.”
According to the current wording of the bill, the proposed change to the law would allow physicians to open a hospital if the nearest one is 35 miles or more away, or 15 miles if the new hospital is being opened in a community with only secondary roads, as in a mountainous area. Additionally, the bill would allow hospitals currently owned by physicians to expand in a similar manner.
The bill is new and will likely change as it faces input from House committees, long before it ever potentially reaches the Senate. However, in their announcement, the current sponsors pressed for its passing.
“With our nation's healthcare system grappling with consolidation, rural hospital closures, and limited patient choices, it is essential for Congress to find prompt solutions. This bill provides a means for communities to expand healthcare options for patients and allows physicians the opportunity to continue practicing medicine,” the announcement reads.
Stakeholders express their support
A number of physician lobbyists and advocacy groups have already given the bill their stamp of approval. The announcement from the congressional sponsors contains quotes from eight physicians, including those with the American Association of Orthopaedic Surgeons, OrthoForum, the American Medical Association and Physician-Led Healthcare for America, among others.
“As an integrated safety-net hospital and health system, we proudly deliver the most comprehensive and advanced care available South of San Antonio to over 1.3 million patients deep in South Texas. Repealing the obsolete physician-owned hospital moratorium in underserved and rural areas like the Rio Grande Valley ensures we can continue to increase access to health care services, address health disparities and improve health equity for all” Carlos J. Cardenas, MD, chairman of the board, Doctors Hospital at Renaissance, said in the announcement.
The Physician Led and Rural Access to Quality Care Act was introduced on July 11. Its full text can be found here.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.