WASHINGTON––U.S. Senators John Boozman (R-AR) and James Lankford (R-OK) introduced the Physician Led and Rural Access to Quality Care Act to re-empower physician-owned hospitals (POHs) to expand and deliver high-quality care to Medicare and Medicaid patients in rural communities.

Currently, POHs are prohibited from expanding and creating new hospitals. While they represent less than five percent of the 5,700 hospitals nationwide, POHs have a successful track record of providing individualized and innovative quality care, and they meet a growing demand for health care services, especially in rural areas. Seventy-three percent of POHs with a Centers for Medicare & Medicaid Services (CMS) overall hospital quality star rating earned three or more stars in the program; 26 percent of them have earned five stars.

“Millions of Americans need the access to health care that physician-owned hospitals can provide,” said Boozman. “These institutions also serve as important economic pillars in less populated communities. Removing arbitrary limits that can help expand medical care in rural Arkansas and beyond is an important step to ensuring reliable, quality health systems operate in more communities.”

“Oklahomans and rural communities across the country need more quality health care options,” said Lankford. “This bill lifts the outdated restrictions that have blocked physician-owned hospitals from growing or opening where they’re needed most. Local physicians should be empowered to deliver high-quality, patient-focused care in rural Oklahoma.”

The legislation is cosponsored by Senators Roger Marshall, M.D. (R-KS), Bill Cassidy, M.D. (R-LA), Thom Tillis (R-NC), John Cornyn (R-TX), Markwayne Mullin (R-OK), John Barrasso (R-WY) and Ted Budd (R-NC).

The legislation is endorsed by the American Medical Association (AMA), Physician-Led Healthcare for America (PHA) and the American Association of Orthopedic Surgeons (AAOS).

“Across the country, patients in rural communities are struggling to access essential medical care as more rural hospitals are forced to close due to the immense financial strain associated with declining reimbursements and rising medical costs,” said AMA President Bruce A. Scott, M.D. “By allowing physicians to invest in and revitalize these hospitals, this legislation has the power to preserve and expand access to critical health care services in the communities that need them most. Physician-led hospitals are known to deliver high-quality, cost-effective care. This is a commonsense solution to a worsening problem. The AMA strongly supports this legislation and urges Congress to pass it as a vital step toward improving health care access for rural patients.”

“The daily headlines are impossible to ignore,” said PHA President-elect Carlos Cardenas, M.D. “Healthcare costs are skyrocketing, rural hospitals are shuttering at alarming rates, and quality and patient satisfaction continue to decline. The status quo is failing us. It’s time to revitalize our healthcare system with a proven solution: physician-led hospitals.”

“When physicians lead hospitals, patients win,” said AAOS Advocacy Council Chair Dr. Adam Bruggeman, M.D. “Physician-led hospitals are a powerful solution to the consolidation plaguing our healthcare system. By lifting outdated restrictions on physician ownership, we can drive down costs, improve quality, and expand access to care, especially in underserved rural areas. It’s past time to empower physicians to build healthcare institutions that prioritize patients over profits.”