OKC Standard

Senator James Lankford of Oklahoma, along with several colleagues, has introduced the Physician Led and Rural Access to Quality Care Act. This proposed legislation aims to change a restriction imposed by the Affordable Care Act (ACA), allowing physician-owned hospitals (POHs) to expand. Particularly, the bill is focused on enhancing healthcare access for Medicare and Medicaid patients, especially in rural areas.

Senator Lankford stated, "Oklahomans and rural communities across the country need more quality health care options. This bill lifts the outdated restrictions that have blocked physician-owned hospitals from growing or opening where they’re needed most. Local physicians should be empowered to deliver high-quality, patient-focused care in rural Oklahoma."

Dr. Adam Bruggeman, the chair of the Advocacy Council at the American Association of Orthopedic Surgeons, emphasized the benefits of physician leadership, asserting, "Physician-led hospitals are a powerful solution to the consolidation plaguing our healthcare system. By lifting outdated restrictions on physician ownership, we can drive down costs, improve quality, and expand access to care, especially in underserved rural areas."

Carlos Cardenas, President-elect of Physician-Led Healthcare for America, expressed concern over the current state of healthcare: "The daily headlines are impossible to ignore. Healthcare costs are skyrocketing, rural hospitals are shuttering at alarming rates, and quality and patient satisfaction continue to decline."

Bruce A. Scott, the President of the American Medical Association, highlighted the financial pressures on rural hospitals, saying, "By allowing physicians to invest in and revitalize these hospitals, this legislation has the power to preserve and expand access to critical health care services in the communities that need them most." The American Medical Association strongly supports the legislation and encourages its swift passage.

The bill is sponsored by Senators Roger Marshall, Bill Cassidy, Thom Tillis, John Cornyn, Markwayne Mullin, John Boozman, John Barrasso, and Ted Budd, alongside Lankford.

POHs, accounting for less than five percent of the 5,700 hospitals in the U.S., are noted for providing quality care and meeting rising healthcare demands in rural regions. A significant portion, 73 percent of POHs with a CMS overall hospital quality star rating, have earned at least three stars, with 26 percent attaining five stars.

In 2023, Lankford and Dr. Brian J. Miller co-authored an opinion piece in the Wall Street Journal advocating for the inclusion of physician-owned hospitals among viable healthcare options. Lankford, a Senate Finance Committee member, has introduced multiple similar legislative proposals over the years.