Drive to Repeal Health Reform Raises Hopes to End Ban on Physician-Owned Hospitals

The growing movement to repeal all or parts of the healthcare reform law is raising hopes that the law's ban on physician-owned hospitals could be removed, but an industry leader says it could take months to pass such legislation.

 

Michael Lipomi, one of the directors of Physician Hospitals of America, says he met with Rep. John Boehner (R-Ohio), expected to become the new speaker of the House in January, before Republicans swept to victory in the midterm elections.

 

In the meeting, Mr. Lipomi said Mr. Boehner roundly criticized the law but did not commit to specifically repealing the ban, which stops any new physician-owned hospital from opening by the end of the year and already prevents existing hospitals from expanding.

 

Since the industry has only limited clout in Washington and faces stiff opposition from other hospitals, any repeal of the ban would have to be part of larger legislation, Mr. Lipomi says. "Any bill would have to be part of a broader piece of legislation," he says. "If it were only our issue, it would be an extremely difficult fight."

 

Such legislation might come to a vote in March or April, Mr. Lipomi adds. "The real issue is what the president will do with it," he says. President Obama has indicated he would veto any legislation to repeal or change the law, except for some small changes.

 

PHA representatives have been in contact with a variety of legislators besides Mr. Boehner, according to Mr. Lipomi, who recently became president and CEO of Surgical Management Professionals in Sioux Falls, S.D.

 

Meanwhile, PHA is pressing ahead with a lawsuit against the law. The lawsuit, filed jointly with Texas Spine & Joint Hospital in federal court in Tyler, Texas, alleges the lawsuit is "exclusionary and unconstitutional, eliminates competition for non-physician owned hospitals, and will ultimately have a negative impact on patient choice and medical care affordability."

 

Learn more about Physician Hospitals of America.

 

Read more coverage of the ban on physician-owned hospitals:

 

- Lawsuit Challenges Ban on Physician-Owned Hospitals in Health Reform Law

 

- PHA Names New Officers, Interim Executive Director

 

- What Leaders of Certain Healthcare Trade Groups Delivered for Members

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