WASHINGTON – A coalition of 86 national and state medical organizations urged Congress to lift the ban on physician-led hospitals through a coalition letter released on September 13, 2024. The coalition marks the largest number of organizations to sign a coalition letter urging Congress to pass H.R. 9001, which would create physician hospital ownership exemptions in communities that face the greatest demand for hospital services, such as rural communities. In addition, the bill would allow grandfathered physician-led hospitals, which have been handcuffed since the Affordable Care Act went into law, to expand to meet community needs.
The American Medical Association, American Association of Orthopaedic Surgeons, American College of Surgeons, American Osteopathic Association and American College of Cardiology were among the national medical societies that joined the coalition, which featured a resounding message to address communities that need hospital services.
Rural communities deserve every tool possible to save hospitals that are on the cusp of closure. Unfortunately, the Affordable Care Act prevents physicians from owning hospitals, which limits the most logical class of potential owners, physicians, from saving a rural hospital. Lifting the physician ownership ban would allow underserved rural areas to address shortages in care in the form of a physician-led hospital.
Numerous studies indicate that physician-led hospitals deliver high-quality care at lower costs compared to other hospitals. In addition, studies have found that physician-led hospitals result in savings for Medicare, feature lower prices for procedures and are more efficient. More competition from physician-led hospitals offers a solution to combat consolidation and address access challenges so that patients have additional choices for timely, affordable and high-quality care.
H.R. 9001, which was introduced by a bi-partisan group of sponsors in the House, would allow physician ownership in rural hospitals for hospitals that are more than a 35-mile drive from a main patient campus of a hospital or critical access hospital. (Or in the case of mountainous terrain or in areas with only secondary roads available, a 15-mile drive.)
“Many communities around the nation are facing a clear problem: a lack of hospital services. Sadly, special interest lobbyists in Washington would rather stifle competition than give Americans access to hospital services,” Joseph Alhadeff, MD, PHA’s president, said. “No individual or entity has stepped up to take the risk to offer hospital services in these communities. Why should special interests stand in the way of physicians if they want to offer hospital services in a healthcare desert?”
Alhadeff went on to state, “I applaud the 86 national and state medical societies for urging Congress to pass H.R. 9001. It sends a powerful message that hundreds of thousands of physicians stand united around a common goal that offers patients increased access to low-cost and high-quality healthcare.”
Physician-Led Healthcare for America (PHA) promotes, educates and advocates for exceptional patient-centered care through physician leadership. Founded in 2001, PHA advocates for the interests of physician-owned hospitals, physician-led facilities, physician-led practices and other physician-led initiatives at the federal, state and local levels. The organization also supports its members in their efforts to advance the quality and availability of healthcare in their specific communities.