FAQs

Frequently Asked Questions

What is the implication of the Affordable Care Act’s Section 6001?

Section 6001 of 2010’s Affordable Care Act (ACA) grandfathered in all physician-owned hospitals that are in place as of the date that the ACA was signed into law: March 23, 2010. Hospitals that were under development had until the end of 2021 to become operational and to have their grandfather status.

Forty-five hospital projects stopped as a result of Section 6001.

Are physician-owned hospitals allowed to expand under Section 6001?

The Affordable Care Act’s Section 6001 created a mechanism to allow physician-owned hospitals to be granted an expansion if they meet certain criteria, such as serving as the largest Medicaid provider in the county. However, the criteria are so stringent that only a handful of physician-owned hospitals have been granted the ability to expand.

Meanwhile, the Medicare program does not place expansion handcuffs on hospitals without physician ownership.

How can Congress use physician-owned hospitals to reverse consolidation?

Three board members from three national medical societies argued in an April 12, 2021, piece in Health Affairs that Congress can use physician-owned hospitals as a tool to counter the consolidation that is being experienced in numerous regions around the nation.