Since 2010, the Affordable Care Act (ACA) has expanded health insurance to millions, protecting people with pre-existing conditions and strengthening America's healthcare safety net. But one of its lesser-known provisions has yielded unintended consequences. The ACA restricts the creation and expansion of physician-owned hospitals, a policy that stifles innovation, limits patient access to specialty care, and has coincided with growing market power among large hospital systems.
The bipartisan "Patient Access to Higher Quality Health Care Act of 2025" (H.R. 4002) would repeal these statutory and regulatory barriers that restrict the formation or expansion of physician-owned hospitals. More than 90 national medical specialty societies and state medical associations have joined with the American Medical Association (AMA) to strongly support this measure, and for good reason: removing the ACA's restrictions on physician-owned hospitals will unlock benefits for patients, physicians, and communities, without increasing federal spending or administrative burdens.
Advancing Patient Outcomes and Access
Empirical studies and government analyses suggest that physician-owned hospitals can increase competition and patient choice while delivering high-quality specialty care. A 2005 study conducted for CMS found that physician-owned cardiac hospitals delivered patient outcomes comparable to, and on several measures better than, competitor hospitals, with high rates of patient satisfaction. These findings challenge the assumption that federal restrictions are needed to protect patients from lower-quality care, especially when patients require specialty care.
