Who Can Own A Hospital?

The Government

Any Corporation


Insurance Company

Private Equity



Any Individual Except Practicing Physicians

No other individual in the healthcare delivery system possesses as much education and training as a physician, and patients rely on the physicians’ high-level of expertise to help make informed decisions about the best treatment options possible. Despite being recognized as the most essential aspect of the healthcare system, physicians have been banned from owning and operating hospitals due to the efforts of special interest lobbyists to halt competition.
Every day, headlines point to rising healthcare costs and decreasing choices for Americans due to closures and acquisitions. It’s time to end the special interest ban on physician-led hospitals and allow physicians to operate hospitals in America’s communities to unleash competition to offer lower costs, increased access and higher quality healthcare options for Americans.  

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Physician-Led Hospitals

How Did this Happen?

Prior to the 2010 passage of the Affordable Care Act (ACA), physician-led hospitals thrived throughout the nation and featured some of the nation’s highest quality and efficiency outcomes for hospitals. Desperate to halt the competition, some hospitals used powerful special interest lobbyists to insert a provision in the ACA that handcuffed existing physician-led hospitals by stopping their expansion and prevented the creation of new physician-led hospitals. 

The results of the anti-competitive measure are not surprising. Since that time, the nation’s healthcare system has been plagued by rapid consolidation, which has exposed patients to a rapid increase in costs, threatened access to timely care and worse patient outcomes.


Urge congress to allow expansion of physician-led and owned hospitals to advance competition, increase high quality patient care and improve healthcare efficiencies.

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the ban On Physician Led Hospitals

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Top Reasons for Physician Led Hospitals

Highest Ratings

In July 2022, 23 hospitals in Texas received the highest CMS HCAHPS patient experience rating (5), more than any other state. Of these,17 are physician led hospitals. 

Physician-led hospitals account for 47 of the 250 hospitals in Texas that received a CMS HCAHPS rating (20%). However, they accounted for nearly three quarters (74%) of hospitals with the top patient experience rating in the state.

Lowered Costs

Commercial and cash prices for common services in physician-owned hospitals are about one-third lower than non-physician-owned hospitals, according to a study publishedJune 23 in JAMA Network Open.
Many physician-led hospitals rank as the most cost-efficient hospitals in the nation.

Patient Satisfaction

Physician-led and owned hospitals dominated Health grades 2023 Patient Satisfaction and Patient Excellence Awards. Only 84 of the nation’s hospitals received both awards, and 28 of the awardees are physician-led hospitals. While physician-led hospitals represent less than 5 percent of the nation’s hospitals, an eye-popping 33 percent of the hospitals that won both awards are physician-led hospitals.