Lawmakers propose allowing radiologists to own hospitals, drawing ire from industry lobbying group
House lawmakers recently proposed allowing radiologists and other physicians to own hospitals, drawing ire from the American Hospital Association on Tuesday.
Reps. Beth Van Duyne, R-Texas, and Henry Cuellar, D-Texas, introduced the Patient Access to Higher Quality Health Care Act of 2025 on June 24. The proposal would strike certain provisions of the Affordable Care Act, which since 2010 have restricted the establishment and growth of physician-owned hospitals.
Their bill comes after fellow House lawmakers introduced a similar proposal in March, focused on allowing docs to own certain rural hospitals.
“Patients should have the freedom to choose the highest quality care available, and physicians should be allowed to provide it,” Van Duyne said in a statement. “By restoring physicians’ ability to invest in hospital facilities, we expect to see incredible growth in medical care alternatives, which will enable better health outcomes for the American people.”
According to the American Medical Association, the number of physician-led hospitals grew from around 70 in the early 2000s up to 250 in 2010. This was driven by demand for acute care in some markets and the “benefits of facility specialization in enhancing clinical operations and surgical procedures,” the American Academy of Orthopaedic Surgeons notes. However, that growth “came to a halt” in 2010 following the passage of the ACA. This included a provision to ban the expansion of existing physician-led hospitals, which H.R. 4002 also would lift.
The American Hospital Association on Tuesday announced its opposition to the bill, believing it could “destabilize healthcare access.” Leaders contend the measure would “skew” the marketplace in favor of physicians, who would self-refer patients to hospitals they own while failing to improve access to quality care.
“Our member hospitals and health systems welcome competition; however, physician self-referral is the antithesis of fair competition,” Lisa Kidder Hrobsky, senior VP of advocacy and political affairs, said in a statement July 8. “This problematic practice allows physicians to steer their most profitable cases to facilities they own—facilities that often call 9-1-1 to handle their emergencies and are often located in the most affluent areas. By providing the highest-paying procedures to the best-insured patients, physician owners inflate healthcare costs and drain essential resources from community hospitals, which depend on a balance of services and patients to provide indispensable treatment, such as behavioral health and trauma care."
Numerous doc groups previously voiced their support for lifting restrictions around physician-owned hospitals. Those included the AMA, AAOS, American Osteopathic Association, American College of Cardiology and the American College of Surgeons. Lawmakers also highlighted the support of Libertarian organizations such as the Libre Initiative and Americans for Prosperity. The latter noted that previous studies have found physician-owned hospitals deliver care at lower prices than competitors.
“If a barber can own a hair salon, and a truck driver can own a trucking company, then a doctor should be able to own a medical facility,” Dean Clancy, senior health policy fellow at Americans for Prosperity, said in a statement. “We applaud Congresswoman Van Duyne for introducing commonsense legislation to repeal the ban on physician-owned hospitals, a ban that harms patients, drives up prices, and exists solely to protect big hospital corporations from free-market competition.”
The bill has drawn support from several others in the House. Co-sponsors include Reps. Andy Biggs, R-Ariz., Neal Dunn, R-Fla., Andy Harris, R-Md. Kevin Hern, R-Okla., Rich McCormick, R-Ga., Mariannette Miller-Meeks, MD, R-Iowa, August Pfluger, R-Texas, and Rudy Yakym, R-Ind.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.