U.S. Senators John Boozman and James Lankford have introduced a new piece of legislation aimed at enhancing healthcare access for rural Americans. The proposed Physician Led and Rural Access to Quality Care Act seeks to enable physician-owned hospitals (POHs) to expand and improve care delivery to Medicare and Medicaid beneficiaries in rural areas.
Currently, these hospitals are restricted from expanding or establishing new facilities. Despite representing less than 5% of the nation’s 5,700 hospitals, physician-owned hospitals have demonstrated success in providing personalized, high-quality care, especially in rural settings. According to Centers for Medicare & Medicaid Services ratings, 73% of POHs have received three or more stars, with 26% achieving five stars.
Senator Boozman stressed the importance of the bill, stating, “Millions of Americans need the access to health care that physician-owned hospitals can provide.” He noted the economic significance of these hospitals in smaller communities and the need to remove obstacles impeding their expansion.
Senator Lankford highlighted the necessity for increased healthcare options in rural areas, stating, “This bill lifts the outdated restrictions that have blocked physician-owned hospitals from growing or opening where they’re needed most.”
The legislation has attracted cosponsorship from Senators Roger Marshall, Bill Cassidy, Thom Tillis, John Cornyn, Markwayne Mullin, John Barrasso, and Ted Budd. It is also backed by the American Medical Association (AMA), Physician-Led Healthcare for America (PHA), and the American Association of Orthopedic Surgeons (AAOS).
Bruce A. Scott, AMA President, commented on the situation in rural communities, saying, “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.” He emphasized that physician-led hospitals provide high-quality, cost-effective care and urged Congress to pass the bill.
PHA President-elect Carlos Cardenas highlighted the dire state of rural healthcare, noting, “The daily headlines are impossible to ignore. Healthcare costs are skyrocketing, rural hospitals are shuttering at alarming rates, and quality and patient satisfaction continue to decline.”
Dr. Adam Bruggeman, AAOS Advocacy Council Chair, added, “When physicians lead hospitals, patients win,” and called for the removal of restrictions on physician ownership to improve healthcare access, particularly in underserved rural areas.
