Key Insights:
- Congress is considering the “Patient Access to Higher Quality Health Care Act of 2023” (H.R. 977/S. 470), which aims to repeal a provision in the Affordable Care Act (ACA) that limits the expansion and establishment of physician-owned hospitals (POHs).
- The ACA provision halted the construction of new POHs and restricted the expansion of existing ones. Currently, only about 4% of American hospitals are owned by physicians.
- Proponents argue that lifting the restrictions would boost competition, reduce healthcare costs, and improve patient access to high-quality care, especially in rural areas. They claim that physician ownership can lead to more efficient and patient-centered care.
- Critics contend that POHs tend to “cherry-pick” healthier, better-insured patients and avoid providing comprehensive services such as emergency care. They also raise concerns about potential conflicts of interest and the incentivization of unnecessary procedures.