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Home > News > March, 2011

GOP Lawmakers Seek to Repeal Ban on New Physician-Owned Hospitals

Proposed legislation would overturn provisions in healthcare reform bill that restrict industry growth.

Published: March 24, 2011
Categories: Legal/Regulatory, News

Two Republican congressmen have introduced separate bills to repeal sections of the 2010 Affordable Care Act that placed new restrictions on physician-owned hospitals.

It's been 1 year since the then-Democratic-controlled Congress passed the healthcare reform bill, which included new restrictions on the growth of existing physician-owned hospitals and the development of new ones that took effect at the end of last year. Last week, Republican Reps. Doc Hastings of Washington and Sam Johnson of Texas, both of whom have physician-owned hospitals in their home districts, introduced legislation that would repeal those sections of the bill that include new reporting requirements for physician-owners, a ban on referrals to new physician-owned hospitals opened after Dec. 31, 2010, and limits on the expansion of existing physician-owned hospitals.

Physician Hospitals of America issued a statement in support of repealing Section 6001 of the Affordable Care Act in order to allow industry growth. "Much needed expansion projects were halted at over 30 existing hospitals, and more than 40 hospitals are in a state of uncertainty because they were not certified by Medicare in time to meet the Dec. 31 deadline," says PHA President Michael Russell, MD, a partner in the physician-owned Texas Spine and Joint Hospital. "Passage of this legislation would undo the harm to communities imposed by the current law, help improve access to quality health care services, preserve the right of patients to choose where they receive their health care, and protect much needed jobs during our down economy."

Meanwhile, the American Hospital Association came out against the proposals, urging Congress to keep the ban on new physician-owned hospitals in place. "Repealing it would drive up health care costs and will make it hard for full-service hospitals to provide essential public services," says AHA Executive Vice President Rick Pollack in a statement.

Irene Tsikitas

© Copyright Herrin Publishing Partners LP 2011. REPRODUCTION OF THIS COPYRIGHTED CONTENT IS STRICTLY PROHIBITED. We encourage LINKING to this content; view our linking policy here.


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© Copyright Herrin Publishing Partners LP 2011. REPRODUCTION OF THIS COPYRIGHTED CONTENT IS STRICTLY PROHIBITED. We encourage LINKING to this content; view our linking policy here.

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