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Representative Sam Johnson (R-TX) Introduces Bill to Repeal Ban on Physician-Owned Hospitals

Friday, February 17, 2017  
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February 17, 2017


Contact:           John Richardson

                        Executive Director, PHA

                        (202) 367-1113





WASHINGTON, DC – Yesterday, Representative Sam Johnson (R-TX) introduced H.R. 1156, the “Patient Access to Higher Quality Health Care Act of 2017,” with bipartisan support. This important legislation repeals the ban on the formation and expansion of physician-owned hospitals implemented in 2010 by the Affordable Care Act. ”We thank Congressman Johnson for his leadership on this important issue. Once enacted the bill would increase patient access to higher-quality, more affordable healthcare and introduce much-need competition into hospital markets,” stated Dr. Blake Curd, President of Physician Hospitals of America.


Dr. Curd added, “Physician-owned hospitals have been recognized as leading healthcare centers of excellence and the current ban unjustly penalizes patients who deserve the right to receive care at the hospital of their choice.”


The Hospital Value-Based Purchasing (VBP) Program administered by the Centers for Medicare and Medicaid Services (CMS) rewards hospitals for high quality of care and patient satisfaction. In FY 2017 of this program, seven of the top 10 and 40 of the top 100 performing hospitals are physician-owned even though they represent only 5% of participating hospitals. Physician-owned hospitals also result in significant savings for both Medicare and patients. An analysis of CMS payment data demonstrated that physician-owned hospitals save Medicare $3.2 billion over a ten-year period.


The Physician Hospitals of America thanks and commends Representative Johnson and his colleagues for their continued commitment to meaningful healthcare reform and patient access to physician-owned hospitals. Congress must enact this legislation as part of their efforts to repeal, repair or replace the Affordable Care Act this year.



Physician Hospitals of America, or PHA, offers support, advocacy and educational services to the physician owned hospital industry, reflecting at all times the best interests of the patients, physicians, and other providers who play an inextricable and essential role in the provision of healthcare services.



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