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Bill permitting new physician-owned hospitals gains steam

A bipartisan group of legislators introduced a bill in the House of Representatives that would allow for new physician-owned hospitals.

The Physician Led and Rural Access to Quality Care Act was introduced by Michael Burgess, MD, (R-Texas), Tony Cardenas (D-Calif.), Morgan Griffith (R-Va.), and Vincent Gonzalez (D-Texas), on July 11, amending aspects of the Affordable Care Act passed in 2010 to ease the ban on physician-owned hospitals.

The bill aims to expand healthcare options for patients and allow physicians to continue practicing medicine, according to a press release posted on Dr. Burgess's website. The bill stipulates physicians could open a hospital in a rural area where there isn't another hospital for 35 miles, or 15 miles in a mountainous area. It would also allow existing physician-owned hospitals to grow and expand services.

"Having owned my own practice, I understand the critical importance of affordable healthcare prices and timely access to high-quality care," said Dr. Burgess. "I am honored to lead this bipartisan legislation with my fellow members to ensure that rural patients across America receive the care they need."

Medical and specialty societies are lining up to support the legislation. Bruce Scott, MD, president of the American Medical Association, applauded the group's efforts to allow for some new physician-owned hospitals.

"With consolidation on the rise in all areas of healthcare leading to higher costs, it's crucial that Congress pursue policy solutions to increase competition, especially among hospitals," said Dr. Scott in the news release, later noting, "This balanced approach will undoubtedly usher in high quality healthcare across the country, especially in rural areas."

Adam Bruggeman, MD, advocacy council chair of the American Association of Orthopaedic Surgeons is one of the supporters as well.

"Rural hospitals provide essential healthcare services to millions of Americans, but they continue to face immense financial pressures and workforce shortages that threaten their viability," he said. "This legislation would provide a targeted solution to empower physician-led hospitals in underserved rural areas. It would represent an incremental and reasonable step that would expand options for maintaining access to care when a rural community is at risk of losing its hospital."

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