Radiology societies endorse bill to lift ban on physician-owned hospitals
Radiology societies are voicing their support for a bill that would lift the decade-long ban on allowing physicians to own hospitals.
U.S. Reps. Beth Van Duyne, R-Texas, and Henry Cuellar, D-Texas, first introduced the Patient Access to Higher Quality Health Care Act in June. The proposal would strike certain provisions of the Affordable Care Act, which since 2010 have restricted the establishment and growth of physician-owned hospitals.
Medical societies including the American College of Radiology and Society of Interventional Radiology recently announced their support for the bill, thanking lawmakers for their effort. They noted that increased consolidation among hospitals and health plans has left patients with “few or no alternatives.”
“Declining physician payment rates and heavy regulatory burdens have placed independent physician practices at a competitive disadvantage,” ACR, SIR, the American Medical Association and about 80 other state and national medical societies wrote to the bill’s sponsors on Nov. 3. “Enacting [House Resolution] 4002 would help correct this imbalance by restoring a pathway for physicians to open and expand hospitals that deliver care through integrated, coordinated models.”
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 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 previously 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.
However, ACR, SIR and others challenged this argument, citing a previous study which found no consistent differences between referral patterns at physician-owned hospitals and elsewhere. Such doc-owned hospitals, rather, frequently outperform others in clinical quality, cost efficiency and patient satisfaction, the physician societies contend.
“Congress has a clear opportunity to improve care and promote competition without creating new spending programs or administrative burdens by enacting H.R. 4002 and allowing physicians to invest in hospitals,” the letter concluded. “This is a logical step toward a more dynamic and patient-focused health system. We urge swift passage of this legislation and stand ready to assist in your efforts.”
ACR also highlighted the letter in a Nov. 6 news update.
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.