The bill –– introduced by Reps. Michael Burgess, MD (R-Texas), Tony Cardenas (D-Calif.), Morgan Griffith (R-Va.), and Vicente Gonzalez (D-Texas) –– seeks to expand the existence of existing physician-owned hospitals, according to an Aug. 14 article published by the American Medical Association.
The growth of physician-owned hospitals has slowed dramatically since 2010, according to the AMA, which cites the passage of the Affordable Care Act and a hospital-lobbied provision within the law that prevented any new physician-owned hospitals from opening.
The new bill wouldn’t repeal the current ban. It creates smaller changes and a narrow exemption for new physician-owned hospitals that meet specific criteria. Hospitals that meet the criteria for exemption are defined as those located in a rural area and more than a 35-mile drive –– 15 miles for mountainous regions –– from another hospital or critical access hospital.
These facilities will be permitted to move forward as new physician-owned hospitals. “With consolidation on the rise in all areas of health care leading to higher costs, it’s crucial that Congress pursue policy solutions to increase competition, especially among hospitals,” said AMA President Bruce A. Scott, MD.
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