Radiologists, other specialists urge Congress to tap physician-owned hospitals in affordability talks

Radiologists and other physician specialists are urging Congress to consider physician-owned hospitals as they seek solutions for America’s healthcare affordability crisis.

Earlier this month, the U.S. Senate debated dueling proposals to address rising medical costs, with both bills failing to pass, the American Hospital Association reported. Over 40 medical societies including the American College of Radiology are now suggesting House lawmakers consider ending the 15-year ban on physician-owned hospitals—a move they believe could curtail spending. 

“Provider-owned hospitals have a proven track record of delivering high-quality care at lower costs, while maintaining a patient-centered approach,” ACR, the American Medical Association, the Medical Group Management Association and others wrote to Republican leaders in the House on Dec. 12. “Research consistently shows these hospitals achieve better clinical outcomes, heightened efficiency and significant savings for programs like Medicare.”

The message comes after Reps. Beth Van Duyne, R-Texas, and Henry Cuellar, D-Texas, introduced the Patient Access to Higher Quality Health Care Act in June. Their proposal would strike certain provisions of the Affordable Care Act, which has restricted the establishment and growth of physician-owned hospitals. According to the AMA, 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 Orthopedic Surgeons notes. 

In their recent letter, radiologists and other physicians charged that healthcare has reached a “crisis point.” Nearly 700 rural hospitals are at risk of closure due to severe financial pressures. This potentially places millions of Americans in healthcare deserts without access to imaging and other services. For many, this will likely mean traveling long distances and enduring significant delays to receive basic treatments. 

“Millions of Americans living in healthcare deserts deserve better,” the physician groups wrote to House leaders. “Expansion of [physician-owned hospitals] brings a clear, community-driven solution by strengthening the partnership between patients and physicians and revitalizing access to healthcare.” 

Others signing the message included American College of Cardiology and similar groups representing surgeons, gastroenterologists, orthopedists, urologists and neurologists. 

Meanwhile, the American Hospital Association and Federation of American Hospitals have spoken against the bill since its introduction. Last month, they released the results of an AHA-commissioned study, charging that allowing new doc-owned hospitals would harm the financial viability of rural competitors. 

“Full-service hospitals across the country are struggling, and rural hospitals are particularly vulnerable to headwinds,” leaders from the two hospital lobbying groups wrote in a blog post last month. “Removing restrictions on POHs, which are notorious for selectively picking the healthiest and wealthiest patients and allowing them to open near full-service rural hospitals will jeopardize access to 24/7 care in rural America,” they added later. 

Conversely, a recently published study in JAMA found that physician-owned hospitals charge less than their counterparts for imaging and other services.