Fact Sheet: Physician Self-referral to Physician-owned Hospitals

Some members of Congress propose weakening significantly Medicare’s prohibition on physician self-referral to new physician-owned hospitals and loosening restrictions on the growth of grandfathered hospitals. Both H.R. 976, the so-called Patient Access to Higher Quality Health Care Act, and H.R. 2513, the PACE Act, would allow many more physician-owned hospitals to open and permit unfettered growth in existing physician-owned hospitals. And, HHS Secretary Alex Azar has expressed interest in easing restrictions on physician-owned hospitals.

AHA urges Congress to maintain current law; preserve the ban on physician self-referrals to new physician-owned hospitals; and retain restrictions on the growth of existing physician-owned hospitals.

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