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Theories Don’t Replace Facts: Physician-owned Hospitals Cherry-pick Patients, Lead to Lower Quality and Less Access
For more than a decade, the Ethics in Patient Referrals Act, more commonly known as the “Stark Law,” has protected the Medicare program from unfettered growth in physician-owned facilities and further expanding their practices of selecting the healthiest and most profitable patients, driving up utilization, and deferring emergency services to publicly funded 911 services or general acute care hospitals when their patients need emergency care.
New Analysis Validates Need to Preserve Restrictions on the Growth of Physician-owned Hospitals
As some members of Congress continue to propose weakening Medicare’s prohibition on physician self-referral to new physician-owned hospitals (POHs) and loosening restrictions on the growth of existing POHs, new data from Dobson | DaVanzo show that POHs report fewer quality measures and perform worse on readmission penalties compared to full-service community hospitals.
Fact Sheet: Physician Self-referral to Physician-owned Hospitals
Some members of Congress continue to propose weakening Medicare’s prohibition on physician self-referral to new physician-owned hospitals and loosening restrictions on the growth of grandfathered hospitals. The Patient Access to Higher Quality Health Care Act of 2023 (H.R. 977/S.470), would allow problematic physician-owned hospitals to open and permit unfettered growth in existing physician-owned hospitals.