The American College of Radiology (ACR) Backs Legislation to Repeal Restrictions on Physician-Owned Hospitals

The American College of Radiology (ACR), along with more than 80 national and state medical societies, has endorsed the Patient Access to Higher Quality Health Care Act of 2025 (H.R. 4002)—bipartisan legislation that would roll back federal barriers preventing the development and expansion of physician-owned hospitals (POHs).

The bill, led by Reps. Beth Van Duyne (R-TX) and Henry Cuellar (D-TX), would repeal statutory limitations placed on the whole hospital exception within the Stark self-referral law. Those restrictions, imposed under the Affordable Care Act and tightened further by 2022 regulation, currently:

• Prohibit the creation of new physician-owned hospitals
• Severely limit expansion of existing POHs—even in high-need areas
• Impede innovation in clinical integration and alternative payment model participation

In a joint letter, ACR and other medical societies argued that POHs:

• Deliver high-quality, cost-effective patient care
• Increase competition in highly consolidated hospital markets
• Support physician-led care models that promote coordination, efficiency, and innovation
• Improve patient access, especially in underserved communities

The coalition also challenged long-standing claims that POHs “cherry pick” healthier or more profitable patients. Citing research—including a CMS-mandated study and multiple peer-reviewed analyses—the groups noted no consistent evidence of discriminatory referral patterns and highlighted superior POH performance on quality, cost, and patient satisfaction metrics.

Restoring the whole hospital exception, they argue, would allow physicians to meaningfully participate in integrated delivery models, improve accountability for outcomes, and create new options for value-based care outside large hospital systems.

Source: https://www.acr.org/News-and-Publications/physician-owned-hospitals