The Corner

Obamacare Nixes Doctor-Owned Hospitals

Kenneth Artz, of the Heartland Institute, explains

 

Section 6001 of the health care law effectively bans new physician-owned hospitals (POHs) from starting up, and it keeps existing ones from expanding. It has already halted the development of 24 new physician-owned hospitals and forced an additional 47 to struggle to meet the deadline to complete construction, according to the Physician Hospitals of America (PHA).

As Politico reports, “Physician Hospitals of America says that construction had to stop at 45 hospitals nationwide or they would not be able to bill Medicare for treatments.” 

Jeffrey Anderson, at the Weekly Standard

 

 

This little-noticed but particularly egregious aspect of Obamacare is, by all accounts, a concession to the powerful American Hospital Association (AHA), a supporter of Obamacare, which prefers to have its member hospitals operate without competition from hospitals owned by doctors.  Dr. Michael Russell, president of Physician Hospitals of America, which has filed suit to try to stop this selective building-ban from going into effect, says, “There are so many regulations [in Obamacare] and they are so onerous and intrusive that we believe that the section [Section 6001] was deliberately designed so no physician owned hospital could successfully comply.” 

Artz writes, “According to Russell, the AHA, along with Sen. [Max] Baucus (D-MT) and Congressman Pete Stark (D-CA), are responsible for the language in Section 6001.”  

What a perfect example of regulatory capture. (Of course, as Anderson notes, primary responsibility lies with those who voted the bill into law.)

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