Washington, D.C. -  Today, Chairman Michael C. Burgess, M.D. (R-TX), Congressman Tony Cárdenas (D-CA), Congressman Morgan Griffith (R-VA), and Congressman Vicente Gonzalez (D-TX) introduced the Physician Led and Rural Access to Quality Care Act. This bipartisan legislation will increase access to care for American patients in rural areas across Texas and the United States. This bill will also allow certain exemptions to rules for physician owned hospitals in rural areas and remove a ban that prevents existing physician owned hospitals from expanding.

With our nation's health care system grappling with consolidation, rural hospital closures, and limited patient choices, it is essential for Congress to find prompt solutions. This bill provides a means for communities to expand health care options for patients and allows physicians the opportunity to continue practicing medicine.

Click HERE for bill text.

"Texans in rural areas face constant challenges due to limited access to patient care and hospitals, putting their wellbeing at greater risk daily. The Physician Led and Rural Access to Quality Care Act will enable physicians to continue practicing medicine through physician ownership and support the expansion of existing hospitals in rural communities. Having owned my own practice, I understand the critical importance of affordable health care prices and timely access to high-quality care. I am honored to lead this bipartisan legislation with my fellow members to ensure that rural patients across America receive the care they need." said Congressman Burgess.

“The Physician Led and Rural Access to Quality Care Act is a critical step towards greater access to medical care and services for rural Americans,” says U.S. Congressman Morgan Griffith

“As we assess the need for more affordable and quality health care for hard working Americans, we must consider every viable option to meet the demand,” said Congressman Cárdenas. “The Physician Led and Rural Access to Quality Care Act is a common-sense bipartisan effort that will provide more care options and give the physicians who care for us the ability to open hospitals in communities facing great need.”

“It is an unfortunate truth that rural Texans are at a disadvantage when it comes to accessing comprehensive health care than their urban counterparts,” said Congressman Gonzalez. That is why I am proud to co-lead this bipartisan effort to increase access to medical services throughout South Texas’ rural areas by allowing physicians to own and operate hospitals.”                                                           

Background:

The Physician Led and Rural Access to Quality Care Act will:

Amend title XVIII of the Social Security Act to revise exemptions related to physician self-referral for physician-owned hospitals.

Define a "covered rural hospital" as one located in a rural area and more than a 35-mile drive (or 15-mile drive in mountainous terrain or areas with only secondary roads) from another hospital or critical access hospital.

Amend Section 1877(i) to remove the prohibition on the expansion of existing physician-owned hospitals starting from the date of enactment of the bill.
 

The Physician Led and Rural Access to Quality Care Act is supported by the following stakeholders: 

“I applaud the bipartisan leaders from the Energy and Commerce Health Subcommittee - Michael Burgess and Tony Cardenas - for seeking solutions to our nation's ailing healthcare delivery system by allowing physicians to lead hospitals in areas that need high quality care the most,” Joseph Alhadeff, MD, PHA’s president, said. “At a time when our nation's healthcare system is plagued by consolidation and a lack of choices for patients, it is critical for Congress to seek immediate solutions. This bill represents a tool communities could utilize to provide additional healthcare options for patients.”
 
“The Affordable Care Act is now almost 15 years old, and the nation's healthcare ecosystem has changed dramatically since the ACA's passage in 2010. Today, patients have fewer healthcare choices as a result of consolidation. The ban on physicians leading our hospitals has had a detrimental effect on healthcare,” Frederic Liss, MD, PHA’s Chairman said. 

"Rural hospitals provide essential healthcare services to millions of Americans, but they continue to face immense financial pressures and workforce shortages that threaten their viability. This legislation would provide a targeted solution to empower physician-led hospitals in underserved rural areas. It would represent an incremental and reasonable step that would expand options for maintaining access to care when a rural community is at risk of losing its hospital,” said Dr. Adam Bruggeman, Advocacy Council Chair at the American Association of Orthopaedic Surgeons.

“DHR Health applauds Congressmen Burgess, Cardenas, Griffith, and Gonzalez for their bipartisan work toward preserving access to high quality care in medically underserved areas. As an integrated safety-net hospital and health system, we proudly deliver the most comprehensive and advanced care available South of San Antonio to over 1.3 million patients deep in South Texas. Repealing the obsolete physician-owned hospital moratorium in underserved and rural areas like the Rio Grande Valley ensures we can continue to increase access to health care services, address health disparities and improve health equity for all” said Dr. Carlos J. Cardenas, Chairman of the Board, Doctors Hospital at Renaissance, Ltd. (DHR Health).

On Improving Access to Care: "The 'Physician Led and Rural Access to Quality Care Act' is a game-changer for rural healthcare. Allowing physician-owned hospitals to operate in these underserved areas ensures that high-quality medical care is accessible to all, regardless of geographic location. This bill recognizes the unique challenges faced by rural communities and offers a viable solution to address healthcare disparities." - Gene Austin, CEO, Kansas City Orthopaedic Institute, a member of the OrthoForum. 

On Expanding Services: "The ability to expand existing physician-owned hospitals is a critical step forward in meeting the growing healthcare needs of our communities. By lifting the expansion ban, this legislation empowers us to enhance our services and provide comprehensive, patient-centered care. This is a significant move towards improving healthcare infrastructure and patient outcomes." - Gene Austin, CEO, Kansas City Orthopaedic Institute, a member of the OrthoForum. 

On Supporting Physician Leadership: "Physician-led hospitals bring a unique perspective and commitment to patient care, driven by firsthand clinical experience. The 'Physician Led and Rural Access to Quality Care Act' supports this model, ensuring that medical professionals are at the forefront of healthcare delivery. This bill not only promotes high standards of care but also fosters innovation and efficiency in our healthcare system." - Gene Austin, CEO, Kansas City Orthopaedic Institute, a member of the OrthoForum. 

"With consolidation on the rise in all areas of health care leading to higher costs, it's crucial that Congress pursue policy solutions to increase competition, especially among hospitals.  We applaud Reps. Michael Burgess, M.D. (R-Texas) and Vicente Gonzalez, (D-Texas)  for putting forth a bipartisan, common-sense solution to allow some new physician-owned hospitals to, once again, come to fruition. This balanced approach will undoubtedly usher in high quality health care across the country, especially in rural areas," said Bruce A. Scott, M.D., President of the American Medical Association.

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